Photronics Inc. (PLAB) and Teradyne Inc. (TER) are emerging as key players in the AI-driven semiconductor market. Photronics, a global leader in photomasks critical for chip production, reported record high revenue in advanced chips towards the end of February 2026 and has increased its capital expenditures (CapEx) to $188.1 million, up from $131 million in FY24. This increase supports their expansion in the U.S. and South Korea.
Teradyne, which manufactures testing equipment for chips, saw its stock price rise by 40% in 2026, contrasting with a 0.5% decline in the S&P 500. The growth is attributed to heightened demand for testing complex AI chips amid the booming data center market. Both companies currently boast positive earnings per share (EPS) revisions, indicating a bullish market outlook.
