Semiconductor and artificial intelligence stocks are back in the spotlight, with market attention pulled toward AI chip demand, record index levels, and a tight focus on inflation and Treasury yields. For investors trying to work out which opportunities might benefit or struggle as this story plays out, broad sector labels are not enough. The real interest sits in individual companies linked to AI-related chip production and large-scale computing. This article walks through 3 stocks from the Artificial Intelligence and Semiconductor Stocks screener that are currently described as positively exposed to the latest news catalysts.

GLOBALFOUNDRIES (GFS)

Overview: GLOBALFOUNDRIES is a semiconductor foundry that manufactures chips for customers, supplying processors, radio frequency parts, power management units and other devices that underpin AI data centers, mobile devices, automotive systems and quantum technology projects.

Operations: GLOBALFOUNDRIES generates about US$6.8b in revenue from semiconductor manufacturing services.

Market Cap: US$38.3b

GLOBALFOUNDRIES sits at the heart of the current AI and semiconductor story, supplying essential chip manufacturing capacity for AI data centers, connected cars and secure communications, while also working with the U.S. Department of Energy and European partners on advanced computing, silicon photonics and quantum projects. The company is already profitable, earnings are considered high quality, and analysts see room for further growth, yet it still faces real pressure from capital-intensive expansion, reliance on external funding and limited exposure to the most advanced process nodes. For investors watching AI infrastructure and specialty chips, the real question is how these government-backed projects, new design wins and its current valuation fit together in the years ahead.

GLOBALFOUNDRIES sits between government backed projects and commercial AI demand, yet the real story may be how its current pricing stacks up against its prospects. Review the DCF valuation analysis for GLOBALFOUNDRIES to see what the market might be missing.

Micron Technology (MU)

Overview: Micron Technology is a global memory and storage specialist that supplies DRAM, NAND and solid state drives used in AI data centers, PCs, smartphones, cars and industrial equipment, sold under the Micron and Crucial brands. Its chips and software tools support everything from high bandwidth AI servers to embedded systems in vehicles and consumer devices.

Operations: Micron generates most of its revenue from the Cloud Memory Business Unit (US$31.3b), Mobile and Client Business Unit (US$27.2b), Core Data Center Business Unit (US$21.2b) and Automotive and Embedded Business Unit (US$10.5b), with a small contribution from All Other (US$19m).

Market Cap: US$1,101.8b

Micron Technology is central to the current enthusiasm for AI chips because its high bandwidth memory and data center products are tied directly to AI server build outs. Recent results show revenue, gross margin and earnings all coming in above guidance ranges. Multi year customer agreements reportedly locking in around US$100b of minimum revenue through 2030, together with record auto and industrial demand, give the company unusually high visibility in a sector that is often very cyclical. At the same time, heavy capital spending plans, legal and regulatory scrutiny, intense competition from other memory giants and a volatile share price mean the path is unlikely to be smooth. This mix of factors is a key reason many investors are watching Micron so closely right now.

Micron Technology’s surging AI interest and long term customer agreements are only half the story; the real question is what the analyst forecasts for Micron Technology imply about where the risk reward trade off really sits

Onto Innovation (ONTO)

Overview: Onto Innovation supplies the process control and metrology tools that help chipmakers spot defects and measure ultra fine features during semiconductor manufacturing and advanced packaging, covering everything from wafers and AI accelerators to sensors and power devices across major global fabs.

Operations: Onto Innovation generates about US$1.0b in revenue from Semiconductor Equipment and Services, with sales spread across Taiwan (US$301.2m), South Korea (US$255.9m), the United States (US$154.7m), Japan (US$103.9m), Southeast Asia (US$73.0m), China (US$86.3m) and Europe (US$55.6m).

Market Cap: US$15.3b

Investors looking at AI infrastructure are paying close attention to Onto Innovation because its tools sit where AI chips and high bandwidth memory are assembled and inspected, a point in the chain where defects can quickly become very expensive. Management and analysts link the company’s prospects to themes such as advanced packaging for AI, HBM capacity builds and the Rigaku partnership. At the same time, the stock trades on a rich P/E and margins have recently compressed, with a large one off loss highlighting that earnings can be bumpy. The balance between AI related demand, the current order pipeline and a premium valuation is what makes Onto notable for this screener’s audience.

Onto Innovation’s rich P/E and compressed margins could be masking where the real AI packaging payoff sits. Get the fuller picture in the analyst forecasts for Onto Innovation and see what the order cycle might be hinting at next.

The three stocks in this article are only a starting point, with the full screener surfacing 25 more companies in the Artificial Intelligence and Semiconductor Stocks screener that carry equally compelling AI and semiconductor narratives. Use Simply Wall St to identify and analyze the specific catalysts, government ties and AI chip exposure that matter most so you can focus on the highest conviction opportunities for your watchlist.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.