3 AI Semiconductor Stocks Riding TSMC’s Arizona Expansion

Artificial intelligence hardware is attracting huge attention after Taiwan Semiconductor Manufacturing Company, or TSMC, committed an extra US$100b to accelerate its Arizona expansion and leaned into advanced 2 nanometer chips as a key future revenue driver. That kind of spending, paired with a US$60b to US$64b capital expenditure outlook and higher U.S. build costs, can ripple across large, well rated chip designers and manufacturers worldwide. This article breaks down how that news ties back to the Artificial Intelligence Semiconductor Leaders screener and reveals three stocks that look positively exposed to these developments.

Nanya Technology (TWSE:2408)

Overview: Nanya Technology is a New Taipei City based memory manufacturer that designs and produces a broad range of DRAM chips and modules, including low power DRAM and multi chip packages, for use in consumer electronics, data centers, mobile devices, industry and automotive applications across global markets.

Market Cap: NT$1.23t

Nanya Technology is positioned at the center of rising AI hardware demand, supplying advanced DRAM products used in servers and AI infrastructure, while benefiting indirectly as TSMC and other chipmakers invest in capacity and leading edge nodes. Management is leaning into this trend with a planned new fab, a TWD 52b capital spending program and a pipeline that includes DDR5 and low power DRAM tailored for AI workloads. At the same time, the stock appears attractively valued, with a P/E below many Taiwanese semiconductor peers and our fair value estimate, even after Q2 2026 results showed revenue of TWD 82,549 million and a swing to net income of TWD 50,192 million. However, heavy investment, technology migration and higher funding risk could pressure cash flows if conditions change, which is why the full story behind Nanya Technology matters.

Nanya Technology’s swing back to profit and lower P/E suggest that the market may not be pricing the full AI memory story. At the same time, the capital spend and tech transition could be masking crucial trade offs in the 4 key rewards and 1 important major warning sign

Jentech Precision Industrial (TWSE:3653)

Overview: Jentech Precision Industrial is a Taoyuan City based manufacturer of precision tooling and metal components, supplying heat spreaders, semiconductor lead frames, cooling modules and other engineered parts used in semiconductor, automotive, consumer electronics, telecom and medical devices.

Operations: Jentech Precision Industrial generates most of its revenue from the Semiconductor Business Group at about NT$16.9b, with the remainder of roughly NT$3.9b coming from other activities.

Market Cap: NT$471.0b

Jentech Precision Industrial provides exposure to AI hardware through the segment of advanced thermal and structural components that high power chips depend on. Forecast revenue and earnings growth, strong margins with a net profit margin around 25.5% and a forecast ROE projected to be very high help explain why some analysts see sizeable upside despite a rich P/E multiple. At the same time, funding entirely through higher risk external borrowing and questions around board independence introduce governance and balance sheet considerations that are important to note. How these strengths and pressure points fit together in the context of rising AI related demand is a key factor in assessing the opportunity and risk profile for Jentech Precision Industrial.

Jentech Precision Industrial’s rich P/E, strong margins and high forecast ROE could be masking a deeper story about how much risk is baked in, so the 4 key rewards and 1 important warning sign that ties these together might surprise you

Montage Technology (SHSE:688008)

Overview: Montage Technology is a Shanghai based IC design company that supplies key chips for cloud computing and AI infrastructure, including memory interface components, DDR5 power management and control chips, PCIe retimers, CXL memory controllers and a Jintide server platform for data center customers in China.

Operations: Montage Technology currently generates its revenue entirely from Integrated Circuit Products, contributing roughly CN¥5.7b.

Market Cap: CN¥224.9b

Montage Technology sits close to the center of China’s AI hardware build out, with cloud focused memory and connectivity chips that could benefit from rising demand for AI servers while TSMC and other foundries commit heavy investment to advanced nodes. Reported earnings have grown by 49.2% over the past year, with net profit margins around 44.9% and first half 2026 guidance indicating further progress. At the same time, the stock trades at a high P/E ratio and above some cash flow based fair value estimates. Combined with share price volatility, board turnover and reliance on external funding, this creates a mix of notable growth drivers and meaningful risks that may warrant closer examination.

Surging earnings and rich margins put Montage Technology in the spotlight, yet the mix of premium P/E, cash flow tension and funding risk raises bigger questions that the 3 key rewards and 1 important major warning sign

The three stocks covered here are just a starting point, as the full Artificial Intelligence Semiconductor Leaders screener surfaces 32 more large, well rated chip designers and manufacturers with equally compelling narratives around AI related demand, capital intensity and balance sheet strength. Use Simply Wall St to access that wider universe, identify the specific catalysts that matter to you and analyze the risk and reward profiles so you can focus on the highest conviction semiconductor ideas.

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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.

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