AI, smarter cars, and fresh government support have turned the semiconductor story into one of the most closely watched areas on the market, with chipmakers racing to add capacity and upgrade tools. That creates potential openings for investors who act before sentiment fully adjusts to these shifts. This article explores how recent news ties into three stocks from a global semiconductor and equipment screener that could be worth a closer look.

The three stocks below are just a starting sample from this theme, and the full screen surfaced 30 more companies with equally compelling narratives that are not covered in this article. If you want to identify and analyze potential higher conviction ideas around chips, equipment, and materials, head straight into the Global Semiconductor Manufacturers and Equipment Suppliers screener.

Powerchip Semiconductor Manufacturing (TWSE:6770)

Overview: Powerchip Semiconductor Manufacturing is an integrated chip producer that covers R&D, wafer fabrication, testing, and packaging, giving you direct exposure to the build out of global semiconductor capacity and to diversified end demand from AI, automotive, and broader electronic devices. The company operates as both a foundry and service provider across Taiwan, the United States, China, and other markets, with support from its parent Powerchip Technology Corporation.

Market Cap: NT$295.4b

Investors watching the build out of chip capacity may see Powerchip Semiconductor Manufacturing as a way to tap into that trend through a company that runs the full IC manufacturing chain from R&D to packaging. Recent 2026 results show a swing back to profitability, with Q2 and first half earnings moving from prior losses to solid net income, which supports the screener focus on larger, higher rated, lower risk manufacturers that are actively expanding. At the same time, the stock faces funding risk because it leans on external borrowing and has signaled further capital raising through an US$886.2 million follow on equity offering. For investors, the mix of improving profits and balance sheet questions sets up a story worth examining in more detail.

Powerchip Semiconductor Manufacturing has earnings momentum that could be masking the real story. Before this mix of profits and fresh equity funding is fully priced in, review the 5 key rewards and 1 important major warning sign

Kulicke and Soffa Industries (KLIC)

Overview: Kulicke and Soffa Industries supplies the assembly and packaging equipment that turns finished wafers into usable chips, selling wire bonders, thermocompression and advanced packaging tools, plus consumables and services that are essential for scaling AI, data center and automotive chip production. The company works with major chipmakers, outsourced assembly and test providers and automotive electronics suppliers across the US and Asia.

Operations: Kulicke and Soffa Industries generated about US$950 million in revenue, led by Ball Bonding Equipment at US$587.6 million, followed by Aftermarket Products & Services at US$171.1 million, Advanced Solutions at US$87.2 million, Wedge Bonding at US$80 million and All Others at US$24.3 million.

Market Cap: US$4.4b

Investors looking for pure exposure to the build out of semiconductor capacity may find Kulicke and Soffa Industries interesting because it sells the assembly tools chipmakers need when AI servers, connected devices and electric vehicles move from design to volume production. The company has reported very large earnings growth recently and analysts expect strong revenue and profit expansion that ties directly into advanced packaging, high bandwidth memory and automotive power semiconductors. At the same time, heavy reliance on new technologies like fluxless thermocompression, meaningful insider selling and a funding structure built on external liabilities all add execution and cycle risk. For investors, the mix of high growth expectations and real cycle sensitivity makes Kulicke and Soffa a story worth watching closely rather than just reading the headline numbers.

Kulicke and Soffa’s accelerating earnings story often gets reduced to headline growth, yet the real signal sits in how future expectations stack up against execution risk. Pull up the analyst forecasts for Kulicke and Soffa Industries and see what the market might be missing

TOWA (TSE:6315)

Overview: TOWA Corporation designs and manufactures semiconductor manufacturing equipment and high precision molds that are used in chip molding, cutting and advanced packaging, giving direct exposure to the build out of global fab capacity and demand from AI and automotive semiconductors. Alongside its core chip related tools, TOWA also runs smaller medical device and laser processing equipment businesses that add extra revenue streams.

Operations: TOWA generates most of its revenue from the Semiconductor Manufacturing Equipment Business at ¥57,801.866 million, with smaller contributions from the Medical Device Business at ¥2,573.308 million and the Laser Processing Equipment Business at ¥2,093.315 million.

Market Cap: ¥175.0b

TOWA offers exposure to the tools fabs use for advanced packaging and precision molding as AI servers, autos and other chips move into higher volume production. Q1 2026 results show how sensitive TOWA can be to stronger equipment demand, with sales at ¥16,183.49 million and net income swinging from a prior loss to a profit of ¥1,657.52 million. The flip side is that this is a capital equipment stock with highly volatile trading and exposure to capex timing, so expectations can shift quickly. For investors willing to handle that volatility, TOWA’s combination of current profitability and focused theme exposure may warrant closer scrutiny.

TOWA’s equipment story appears to be accelerating as AI and auto demand broaden. However, the real twist may be how that growth interacts with volatility in its order cycle. Pull up the analyst forecasts for TOWA

Seeking Alternatives Before Momentum Flies

Fresh ideas move fast. By the time every stock is trending, the cleanest entry points may be gone. Scan these curated lists while it matters, then act based on your own analysis.

• Spot companies building AI infrastructure and chip capacity early by scanning the 55 AI infrastructure stocks. Use this list to explore which stocks you want to research further.
• Hunt for high quality fundamentals using the list of solid balance sheet and fundamentals (426 results). Filter for resilient balance sheets before the crowd focuses on the stocks with visible momentum.
• Track the shift toward nuclear energy infrastructure via the 92 nuclear energy infrastructure stocks. Review these ideas while many of these stocks may still be under the radar.

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.