Top 3 Picks
2026 Outlook
Sector trends point to robust growth driven by advancements in AI, 5G, and electric vehicles, with increasing investments in semiconductor fabrication equipment expected to rise by 10-15% annually through 2026. By 2026, the outlook remains positive as demand for advanced nodes and sustainable manufacturing processes accelerates, potentially leading to a market expansion to over $1 trillion, supported by data from industry reports and the high scores of leading companies like LRCX at 67.0. However, risks from economic slowdowns or trade policies could temper this growth, but overall, the sector is poised for strong performance amid technological advancements.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Lam Research Corp
|
67.0 | $194.86 | $180.1B |
|
2
|
Azenta, Inc.
|
63.7 | $35.92 | $1.4B |
|
3
|
Energy Recovery, Inc.
|
62.0 | $14.39 | $843M |
|
4
|
Axcelis Technologies Inc
|
57.9 | $89.97 | $3.0B |
|
5
|
Cricut, Inc. Class A Common Stock
|
57.2 | $4.97 | $1.3B |
|
6
|
Veeco Instruments Inc
|
55.8 | $31.36 | $2.0B |
|
7
|
CVD Equipment Corp.
|
55.6 | $3.86 | $23M |
|
8
|
Velo3D, Inc. Common stock
|
55.1 | $16.05 | $67M |
|
9
|
Sono-Tek Corporation Common Stock
|
54.2 | $4.12 | $70M |
|
10
|
Amtech Systems Inc
|
53.8 | $13.40 | $139M |
|
11
|
ACM Research, Inc. Class A Common Stock
|
50.8 | $45.00 | $2.8B |
|
12
|
Trio-Tech International
|
46.8 | $6.33 | $27M |
In-Depth Analysis: Top Semiconductor Equipment Stocks
LRCX
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear second share in deposition. It is more exposed …
Lam Research matters in the Semiconductor Equipment sector as it is one of the largest manufacturers of wafer fabrication equipment, holding the top market share in etch processes that are critical for precise semiconductor patterning. Its specialization in deposition and etch technologies positions it as a key enabler of advanced chip production amid growing global demand for electronics.
Lam Research exhibits strong profitability with a 29.7% profit margin and a 62.3% ROE, demonstrating efficient operations and high returns on shareholder equity. The company's 27.7% revenue growth further highlights robust financial health, though its 40.9 P/E ratio indicates a premium valuation relative to earnings.
Lam Research's 27.7% revenue growth and leadership in etch equipment make it poised to capitalize on the surging demand for semiconductors in AI, 5G, and electric vehicles by 2026. Its exceptional 62.3% ROE signals strong operational efficiency and potential for sustained earnings growth. Additionally, with a Tradestie Score of 67.0, the stock offers a compelling opportunity for appreciation as the sector expands.
AZTA
Azenta Inc is a provider of life sciences solutions, enabling impactful breakthroughs and therapies to market faster. It provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. The company has three reportable segments that …
Azenta Inc. matters in the Semiconductor Equipment sector as its life sciences solutions, including cold-chain sample management and genomic services, increasingly integrate with semiconductor technologies for applications in drug development and clinical research, driving innovation in biochip and advanced analytics tools.
Azenta's negative profit margin of -9.4% highlights current unprofitability, potentially due to high R&D investments in life sciences, while a low ROE of 1.4% suggests inefficient use of equity; however, the 5.2% revenue growth indicates positive momentum, though the high P/E ratio of 63.0 reflects investor optimism for future earnings.
Azenta's 5.2% revenue growth in life sciences solutions positions it to capitalize on the expanding demand for genomic services and cell therapies by 2026, potentially improving profitability as the sector advances. The company's role in accelerating drug development could lead to market share gains amid increasing biotech investments, supported by a Tradestie Score of 63.7 indicating moderate upside potential. Overall, these factors suggest AZTA could deliver strong returns as global health innovations accelerate.
ERII
Energy Recovery Inc is an engineering-driven technology company. It is engaged in engineering, designing, manufacturing and supplying solutions that make industrial processes more efficient and sustainable. The company operates in three segments, Water, Emerging Technologies and Corporate. It offers energy recovery devices (ERDs) and pumps as well as related products and services to the reverse osmosis desalination market. The company …
Energy Recovery Inc. matters in the Semiconductor Equipment sector by providing energy-efficient solutions that address the high power consumption demands of semiconductor manufacturing, such as in water treatment and cooling systems, thereby enhancing operational sustainability and cost-effectiveness amid global efficiency trends.
Energy Recovery's 14.4% profit margin and 9.4% ROE indicate solid profitability and efficient equity utilization, reflecting financial health despite a -17.1% revenue decline that suggests short-term market challenges; however, the 40.4 P/E ratio implies investor confidence in future growth potential.
By 2026, Energy Recovery could see revenue rebound as demand for sustainable technologies in semiconductors grows, potentially offsetting the -17.1% decline through expansion in emerging technologies segments. The company's Tradestie Score of 62.0 signals moderate upside, and with a 9.4% ROE, improving operational efficiencies could drive earnings growth and stock appreciation in a recovering industrial landscape.
ACLS
Axcelis Technologies Inc designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. In addition to equipment, the company provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services, and customer training. Geographically, the group has a business presence in North America, Asia Pacific, and Europe, of which …
Axcelis Technologies Inc is a key innovator in the Semiconductor Equipment sector, providing essential ion implantation and processing equipment critical for semiconductor chip fabrication, which supports the growing demand in AI, electric vehicles, and advanced electronics. Their aftermarket offerings, including spare parts and equipment upgrades, enhance customer loyalty and extend product lifecycles, differentiating them in a competitive market.
Axcelis exhibits strong profitability with a 15.9% profit margin and a 13.6% ROE, indicating efficient operations and effective equity utilization that underscore financial health. However, the -16.7% revenue growth highlights recent challenges, potentially from market cycles, though the 20.3 P/E ratio suggests the stock remains reasonably valued relative to earnings.
By 2026, Axcelis is poised for growth amid surging semiconductor demand fueled by AI and 5G technologies, leveraging its specialized ion implantation expertise to capture market share and potentially reverse the -16.7% revenue decline. The company's robust 15.9% profit margin and 13.6% ROE demonstrate resilience and capacity for reinvestment in innovation. Furthermore, with a P/E ratio of 20.3, the stock presents an undervalued opportunity for investors seeking exposure to the sector's long-term expansion.
CRCT
Cricut Inc designs and builds a creativity platform that enables users to turn ideas into professional-looking handmade goods. With its connected machines, design apps and accessories, and materials, the users create everything from personalized birthday cards, mugs and T-shirts to large-scale interior decorations. It has two segments including the Platform segment which derives revenue from monthly and annual subscription fees, …
Cricut matters in the Semiconductor Equipment sector due to its integration of advanced semiconductor technologies in connected machines and design apps, which enhance precision and efficiency in consumer electronics for creative applications. This positions the company as a niche innovator, potentially influencing broader trends in smart device manufacturing and personalization.
Cricut's 11.3% profit margin and 19.4% ROE reflect solid financial health, indicating effective cost management and strong returns on shareholder equity. However, the 1.5% revenue growth rate suggests limited expansion momentum, while a P/E ratio of 13.1 implies the stock is attractively valued relative to earnings.
By 2026, Cricut's strong 19.4% ROE and 11.3% profit margin could drive sustained profitability, making it an appealing investment as the company capitalizes on growing demand for personalized products. The current 13.1 P/E ratio indicates undervaluation, offering potential for stock appreciation if revenue growth accelerates beyond 1.5% amid rising consumer trends in DIY and customization.
VECO
Veeco Instruments Inc is a United States-based company engaged in designing, developing, and manufacturing thin-film process equipment, mainly used for producing electronic devices. The company focuses on semiconductor process equipment that addresses a range of challenging materials engineering problems for its customers. Its products include Laser Processing Systems, Lithography Systems, Ion Beam Systems, SiC CVD Systems, MOCVD Systems, Wet Processing …
Veeco Instruments Inc is a pivotal player in the Semiconductor Equipment sector, specializing in the design and manufacture of thin-film process equipment that enables advanced semiconductor production for challenging materials engineering. Its technology supports critical applications in electronic devices, positioning the company as essential for innovations in areas like data storage and LED manufacturing.
Veeco's profit margin of 7.2% indicates moderate profitability, but this is offset by a low ROE of 6.1%, suggesting inefficient use of equity, and a revenue decline of -10.2%, which highlights short-term financial pressures in the sector.
By 2026, the anticipated recovery in the semiconductor industry could boost demand for Veeco's specialized thin-film equipment, potentially reversing the -10.2% revenue growth and improving financial metrics. The company's P/E ratio of 36.8 reflects investor confidence in its long-term earnings potential, driven by innovations in materials engineering. Additionally, with a Tradestie Score of 55.8, Veeco may offer upside for investors betting on sector-wide expansion in advanced electronics.
CVV
CVD Equipment Corp is engaged in the manufacturing of chemical vapor deposition equipment, customized gas control systems, the manufacturing of process equipment suitable for the synthesis of a variety of one-dimensional nanostructures and nanomaterials and a line of furnaces, all of which are used to produce semiconductors and other electronic components. The company operates through the segments of CVD Equipment, …
CVD Equipment Corp. matters in the Semiconductor Equipment sector as a key manufacturer of chemical vapor deposition equipment and customized gas control systems, which are essential for producing advanced semiconductors, nanomaterials, and nanostructures amid growing demand for high-tech applications.
CVD Equipment Corp.'s profitability is weak, evidenced by a -0.7% profit margin and -0.7% ROE, indicating operational losses and inefficient use of equity; furthermore, a -9.6% revenue growth rate signals declining sales, while a Tradestie Score of 55.6/100 suggests moderate financial health with notable risks.
The semiconductor sector's projected expansion in 2026, driven by AI and 5G technologies, could increase demand for CVD's specialized equipment, potentially reversing their -9.6% revenue decline and leading to market recovery. Their focus on nanomaterials and furnaces positions them for niche growth opportunities, as global semiconductor spending is expected to rise significantly. Additionally, if CVD leverages its expertise to innovate, investors could see improved profitability from current levels by capitalizing on sector-wide advancements.
VELO
Velo3D Inc provides additive manufacturing (AM), also referred to as three-dimensional printing (3D printing), to deliver breakthroughs in performance, cost, and time in the production of high-value metal parts. The Velo3D intelligent metal additive manufacturing solution is comprised of the Velo3D Flow intelligent print preparation software, the Sapphire production system, and Velo3D Assure, real-time quality assurance software. Its complete manufacturing …
Velo3D Inc. matters in the Semiconductor Equipment sector because its additive manufacturing technology enables the production of high-value metal parts with significant improvements in performance, cost, and time efficiency, addressing key challenges in semiconductor fabrication. This positions the company as a leader in 3D printing applications that enhance innovation and scalability for complex semiconductor components.
Velo3D's financial health is strained, as evidenced by a profit margin of -147.8% and a return on equity of -224.2%, indicating substantial losses and inefficient capital utilization despite the company's high revenue growth of 65.4%. The low P/E ratio of 3.6 suggests potential undervaluation, but it also reflects ongoing profitability challenges that could persist without operational improvements.
Investors should consider buying VELO stock in 2026 due to its exceptional revenue growth of 65.4%, signaling strong demand for its additive manufacturing solutions in the expanding semiconductor market. The low P/E ratio of 3.6 indicates the stock is undervalued relative to its growth potential, offering a compelling entry point for long-term gains. As additive manufacturing adoption accelerates, Velo3D's innovative technology could capture significant market share, driving profitability improvements by 2026.
SOTK
Sono-Tek Corp design and manufacture of ultrasonic coating systems for applying precise, thin film coatings to add functional properties, protect or strengthen surfaces on parts and components for the microelectronics/electronics, alternative energy, medical, industrial and emerging research & development/other markets. The company design and manufacture custom-engineered ultrasonic coating systems incorporating its patented technology, in combination with strong applications engineering knowledge, …
Sono-Tek Corporation matters in the Semiconductor Equipment sector because its ultrasonic coating systems provide precise thin-film applications that enhance functionality and durability in microelectronics and alternative energy components, addressing critical needs for advanced manufacturing. This expertise positions the company as a key enabler in sectors like semiconductor production, where precision coating is vital for high-performance devices.
Sono-Tek's profit margin of 7.3% indicates moderate efficiency in converting revenue to profit, while its ROE of 8.5% reflects reasonable returns on shareholder equity, suggesting a stable financial foundation. However, the elevated P/E ratio of 41.1 signals that the stock is valued highly relative to earnings, potentially driven by anticipated growth in its niche markets.
By 2026, investors should consider buying SOTK due to increasing demand for ultrasonic coating systems in expanding sectors like microelectronics and alternative energy, driven by trends in AI and electric vehicles. The company's current ROE of 8.5% and profit margin of 7.3% suggest potential for margin expansion as operations scale, enhancing profitability. Furthermore, with a Tradestie Score of 54.2, the stock offers upside in a growing semiconductor equipment market, making it an attractive option for growth-oriented portfolios.
ASYS
Amtech Systems Inc is a manufacturer of capital equipment, including thermal processing and wafer polishing, and related consumables used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon power chips, electronic assemblies, and light-emitting diodes (LEDs). the company has two segments; based on the industries served: Thermal Processing Solutions (formerly called Semiconductor) and Semiconductor Fabrication Solutions (formerly called …
Amtech Systems Inc plays a critical role in the Semiconductor Equipment sector by manufacturing essential capital equipment and consumables for thermal processing and wafer polishing, which are vital for producing advanced semiconductor devices like silicon carbide (SiC) and silicon power chips. This positions the company as a key enabler in high-growth applications such as electric vehicles, renewable energy, and 5G technology, where demand for efficient and high-performance semiconductors is surging.
Amtech Systems exhibits weak profitability with a profit margin of -38.2% and a return on equity of -44.7%, indicating significant losses and inefficient use of shareholders' equity. The company's revenue growth of -17.7% further highlights financial strain, potentially due to sector-wide challenges, though the Tradestie Score of 53.8 suggests moderate overall investment appeal.
By 2026, the rapid expansion of the electric vehicle market and renewable energy sector is expected to increase demand for SiC-based semiconductors, where Amtech's specialized equipment could capture significant market share. With the semiconductor industry's projected growth driven by AI and 5G advancements, Amtech's focus on thermal processing and wafer polishing may lead to revenue recovery from the current -17.7% decline. Additionally, if the company leverages its Tradestie Score of 53.8 to address profitability issues, such as improving the -38.2% profit margin, it could deliver strong returns for investors positioning early in this upcycle.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.