1 Cheap Dividend Chip Stock With Big Upside From AI and Electric Vehicles
Shares of semiconductor-manufacturing equipment company KLA (NASDAQ: KLAC) have been a top-notch investment, with the stock soaring to new all-time highs this year. And it remains near those levels as it has been a more stable business amid a nasty downturn for the semiconductor industry overall. A healthy dose of growing dividends and stock repurchases have kept investors' interested.
Though it might not seem like it now, a new wave of chip demand is gearing up, driven by AI and electrification and digitization of vehicles, with KLA ready to capitalize on the trend. Here's why this could be a great dividend-stock value for the long haul.
KLA is one of the "fab five" -- the five specialist companies that dominate the market for equipment to make semiconductor wafers. In particular, the company dominates the metrology (the science of measuring stuff), process control, and diagnostics part of this niche. This equipment is especially important for quality control when a new chip manufacturing line fires up.
Source Fool.com
