Nvidia’s blowout quarter and strong sales forecast have refocused attention on the picks and shovels of the AI chip rush, the companies that help make advanced semiconductors possible. If AI demand stays strong, many investors will not want to be late to potential ripple effects across equipment and materials suppliers. This article walks through three stocks from our screener that appear particularly exposed to this Nvidia driven story.

The three stocks below are just a starting sample from this AI semiconductor equipment and materials theme. The full screen surfaced 48 more companies with equally detailed business stories that are not covered here. To identify and analyze the highest conviction ideas in this space, head straight to the AI Semiconductor Equipment and Materials Suppliers screener.

ACM Research (ACMR)

Overview: ACM Research develops and sells semiconductor manufacturing equipment such as wafer cleaning, electroplating, furnace and advanced packaging tools that are used in front end and packaging steps for high performance chips, including AI processors. Its systems sit directly in the wafer fabrication and advanced packaging flow, making ACM Research a play on capital spending for more complex logic and memory nodes.

Operations: ACM Research generated about US$1.04b in revenue from semiconductor equipment and services, almost entirely from customers in Mainland China.

Market Cap: US$5.6b

Investors looking at the AI semiconductor equipment theme may find ACM Research interesting because it supplies wet cleaning, electroplating and advanced packaging tools used in the same kind of complex wafers that power Nvidia’s AI chips, and recent results highlight strong momentum in these platforms. The company is closely tied to Mainland China wafer fab spending, which can amplify both growth potential and risk given export controls and customer concentration. Its funding mix relies heavily on external liabilities rather than customer deposits. Along with rising earnings expectations, new packaging orders and ongoing R&D investment, ACM Research offers a mix of AI driven upside and China focused risk that may merit closer examination.

ACM Research’s China heavy AI exposure and reliance on external funding raise big questions about durability. Get the full story, including key upside drivers and pressure points, in the 4 key rewards and 2 important warning signs (1 is major!)

ASMPT (SEHK:522)

Overview: ASMPT designs and manufactures semiconductor and electronics assembly equipment used to package and assemble chips, including advanced packaging and back end tools that support AI processors and data center hardware. Its systems range from wafer level processes like laser dicing and hybrid bonding to SMT printing and placement lines that build AI servers and other electronics.

Operations: ASMPT generates about HK$8.7b from its Semiconductor Solutions segment and HK$7.7b from Surface Mount Technology Solutions, with revenue spread across China, Taiwan, the USA and a wide set of other manufacturing hubs.

Market Cap: HK$68.3b

Investors watching Nvidia’s AI guidance and the wider build out of AI data centers may find ASMPT interesting because it supplies many of the advanced packaging and assembly tools that turn AI chips and photonics components into finished systems. Management highlights engagement across TCB tools for HBM and logic, photonics and CPO, and mainstream SMT lines, supported by reported earnings growth, improving margins and a regular dividend. At the same time, exposure to a concentrated group of advanced packaging customers, heavy reliance on China and a premium valuation based on high growth expectations leave little room for disappointment. How those AI driven opportunities balance against customer and country risk is a key question to focus on.

ASMPT’s AI packaging story is gaining attention, yet many investors may be missing how customer concentration, China exposure and high expectations really fit together. Get the full context in the analysis report for ASMPT

SCREEN Holdings (TSE:7735)

Overview: SCREEN Holdings is a Japan based manufacturer of semiconductor production equipment, best known for wafer cleaning, coater and lithography tools used by global foundries and chipmakers running advanced process nodes for AI data center chips. Alongside its core semiconductor tools, it also sells display, PCB and graphic arts equipment. The key connection to the AI Semiconductor Equipment and Materials Suppliers theme is its role in supplying production tools that support leading edge wafer and advanced packaging workflows.

Operations: SCREEN Holdings generates roughly ¥469.6 billion from Semiconductor Production Equipment, with smaller contributions from Graphic Arts, Display and PCB related businesses, and the majority of its more than ¥596 billion in segment level revenue comes from overseas customers.

Market Cap: ¥2.5 trillion

SCREEN Holdings provides exposure to the AI chip build out through its wafer cleaning, coating and inspection tools that foundries and memory makers use for advanced nodes, while also building a higher margin stream from advanced packaging and services. Nvidia’s strong AI guidance has sharpened interest in this type of supplier. At the same time, SCREEN is still working through softer quarters, margin pressure and heavy China exposure, so sentiment can swing quickly as orders shift. Rising dividend guidance out to FY2027 and a growing installed base indicate management’s focus on cash generation beyond a single AI cycle. The key issue for investors to watch is whether the mix of AI related equipment demand and recurring service income can offset capex volatility and regional risk over the next few years.

SCREEN Holdings’ AI tools story is accelerating, but many investors focus only on short term order swings. To see how equipment demand, services and regional risk really stack up, read the analysis report for SCREEN Holdings

Curious About Fresh Investing Alternatives

New themes keep breaking out while older ideas lose momentum. Use these fresh stock shortlists before the crowd catches on and information goes stale. Act now and get in early.

• Target steadier portfolio anchors by reviewing a curated 75 resilient stocks with low risk scores that aims to hold up when market mood turns and capital gets more selective.
• Chase early upside in resource demand by scanning a hand picked 9 top copper producer stocks tied to long term infrastructure, electrification and grid investment stories.
• Ride potential cash flow and yield momentum by checking a focused 11 dividend fortresses that screens for companies pairing income potential with balance sheet strength.

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.