3 Chip Stocks Set to Win TSMC’s Packaging Boom

KLA Corporation (KLAC) stock fell 7.8% in pre-market trading after AI executives called for a slowdown in AI model development, raising concerns about AI spending. KLAC, a supplier to chipmakers, is vulnerable to shifts in AI investment. Fair-value models suggest 23.9% downside, and weak technical signals amplified selling pressure. The Nasdaq 100 and S&P 500 also declined, reflecting broad market risk-off sentiment.

Kulicke and Soffa (KLIC) reported fastest revenue growth among peers but stock fell 11.7%. KLA Corp (KLAC) reported $3.66B revenue, up 15.2% YoY, stock down 7.3%. FormFactor (FORM) reported $258.2M revenue, up 31.9% YoY, stock up 34.7%. Lam Research (LRCX) reported $6.72B revenue, up 30% YoY, stock up 17.8%.

KLA (KLAC) presented at Citi’s 2026 Global TMT Conference, highlighting strong growth prospects in semiconductor process control, advanced packaging, and high-bandwidth memory. The company reported 12% revenue growth in 2024, 17% in 2025, and expects low 20% growth in 2026. KLA raised its 2026 wafer fab equipment market outlook to mid-$150 billion from $135-140 billion. Backlog reached nearly $13 billion, up 60% year-over-year, with visibility into 2027-2028. Advanced packaging revenue grew 70%

Qualcomm and AWS announced a multi-generational AI chip collaboration, while ASML, TSMC, and Intel made progress in next-gen chip manufacturing. Intel (INTC) +9.5%, Amkor (AMKR) +6.3%, Nova (NVMI) +3.7%, Qualcomm (QCOM) +3.3%, FormFactor (FORM) +6.3%. Intel's 1-year volatility noted; up 166% YTD but -25.7% from 52-week high.

Nova (NVMI) reported Q2 2026 revenue of $255M, up 8% QoQ and 16% YoY, with GAAP net income of $75M and non-GAAP net income of $86.5M. GAAP EPS was $2.20, up from $2.04 QoQ and $2.14 YoY. Non-GAAP EPS was $2.51, up from $2.33 QoQ and $2.20 YoY. The company guided Q3 2026 revenue to $277M-$287M, GAAP EPS to $2.46-$2.61, and non-GAAP EPS to $2.70-$2.85. Gross margin declined to 56.5% from 57.7% QoQ and 57.8% YoY.

U.S. stocks fell on September 4 after a stronger-than-expected jobs report increased expectations of a Fed rate hike. The Dow, S&P 500, and Nasdaq declined, with consumer discretionary leading the drop. Treasury yields rose, gold prices fell. KLA Corp. rose 7.4%, while Lululemon dropped 17.3%. Oil prices remained near $90 per barrel.