Under-the-Radar AI Stocks: High-Growth Chip Suppliers

Key Points:

• Steven Cress, VP of Quantitative Strategy at Seeking Alpha, highlights Ichor Holdings as a promising smaller company benefiting from the AI CapEx boom, particularly through its supply chain role servicing major semiconductor firms like NVIDIA.
• Unlike the tech bubble era, Ichor Holdings has solid revenue and earnings growth, making it a strong quantitative pick with a "Strong Buy" rating in the July Alpha Picks portfolio despite its smaller market cap of around $3 billion.
• The Alpha Picks portfolio uses a quantitative model evaluating value, profitability, growth, EPS revisions, and momentum to identify under-the-radar mid- and small-cap stocks with strong fundamentals before they gain broader market attention.
• Ichor's current lower profitability grade is offset by its rapid earnings growth and reinvestment strategy, with expectations that profitability will improve as the company matures and generates more cash flow.
• Seeking Alpha emphasizes that their recommendations are informational and not personalized investment advice, reminding investors that past performance does not guarantee future results.