The improving demand for chipmaking equipment has given this semiconductor company's business a nice shot in the arm.

Semiconductor stocks have been in fine form on the stock market in 2025. That's evident from the 26% gains clocked by the PHLX Semiconductor Sector index as of this writing, which is double the gain recorded by the S&P 500 index so far this year.

The outperformance of semiconductor stocks can be attributed to the solid demand for chips that go into powering artificial intelligence (AI) workloads across various types of devices. This is precisely the reason why chip giants such as Nvidia ( NVDA 0.32% ) and Broadcom ( AVGO 0.27% ) have been witnessing healthy increases in their revenue and earnings.

Nvidia's dominance of the AI graphics processing un

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