35 Chip Stocks Powering AI Boom

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32. Ultra Clean Holdings, Inc. (NASDAQ:UCTT)

Number of Hedge Fund Holders: 17   

Ultra Clean Holdings, Inc. (NASDAQ:UCTT) provides tools and subsystems for the semiconductor market. The firm generates a significant portion of revenue from AI-related technologies, particularly through demand for advanced packaging and equipment that supports High Bandwidth Memory. This has been a key growth area for the chip firm, especially as AI technologies require sophisticated semiconductor components. In the second quarter of 2024, UCT reported total revenues of $516 million, with strong contributions from AI-related products. The company’s CEO, Jim Scholhamer, highlighted the importance of AI and advanced packaging in driving business forward​ during the earnings call.

Ultra Clean Holdings, Inc. (NASDAQ:UCTT) is an underrated AI play. Craig-Hallum recently raised the price target on the stock to $60 from $52 and kept a Buy rating, noting that management had said they were beginning to see signs of a broader market improvement beginning in later 2024 instead of early next year, and in the next up cycle, Ultra Clean could exceed its previous annual earnings per share peak of $4.2 seen in 2021.

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