Ultra Clean (UCTT) Soars 28% as Chip Expansion Sparks Rosy Prospects

We recently published 10 Stock Winners Shocking Wall Street. Ultra Clean Holdings Inc. (NASDAQ:UCTT) was one of the top performers last week.

Ultra Clean Holdings saw its share prices jump by 27.89 percent week-on-week to hit a 52-week high as investors increased their positions in the company after highlighting its role in the AI industry, further fueled by a semiconductor giant’s higher bets on the sector.

On Thursday, Ultra Clean Holdings Inc. (NASDAQ:UCTT) soared to its highest price of $46, alongside companies riding the AI wave after Taiwan Semiconductor Manufacturing Company (TSMC)—the world’s largest semiconductor manufacturer and maker of Nvidia Corp.’s chip designs—announced that it would ramp up its spending in the sector, an initiative which investors interpreted as a confirmation of strong global demand for AI and high-performance chips.

The announcement spilled over to semiconductor stocks, including Ultra Clean Holdings Inc. (NASDAQ:UCTT), which supplies specialized subsystems, components, and ultra-high purity manufacturing services critical within semiconductor fabs and equipment, making its products and services mission-critical to fab operations.

Additionally, Ultra Clean Holdings Inc. (NASDAQ:UCTT) early last week presented at the two-day Annual Needham Growth Conference, where it underscored its role in the AI sector.

In other news, Bronstein, Gewirtz & Grossman LLC—a shareholder law firm- announced over the weekend that it is probing into potential wrongdoings by the listed firm’s officers and directors, following claims from certain shareholders. It did not elaborate details of the investigation.

While we acknowledge the potential of UCTT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.