Under-the-radar chip stock thrives in Nvidia’s supply chain, benefits AI boom.


  • KLA Corp, a chip stock in Nvidia’s supply chain, is profiting from the AI boom according to fund manager Stephanie Niven.
  • KLA’s semiconductor manufacturing equipment is used by chip makers like TSMC to improve manufacturing efficiency.

Article Summary:

KLA Corp, a semiconductor equipment company, is benefiting from the AI boom through its role in Nvidia’s supply chain. While not a headline AI stock, KLA plays a critical role in enabling AI capabilities by reducing wastage in the manufacturing process. Fund manager Stephanie Niven highlighted how KLA’s products help decarbonize the AI transition by reducing errors and increasing yields. As the eighth largest holding in Niven’s Ninety One Global Sustainable Equity fund, KLA has shown impressive returns amid the AI semiconductor upswing, with its stock rising 25% in 2024 and 89% over the past 12 months. Despite its high valuation multiples, analysts expect KLA’s fortunes to improve in the back half of the year and further in 2025 as chip makers like Intel, TSMC, and Samsung adopt the latest transistor manufacturing technology.