The Outlook for 3 Non-U.S. Chip Stocks That Soared in 2025

Core Insights - The semiconductor industry, particularly large-cap stocks, showed strong performance in 2025, with the iShares Semiconductor ETF (SOXX) achieving a total return of nearly 41%, significantly outperforming the S&P 500's 18% return [2] Group 1: Industry Overview - The semiconductor industry operates within a vast global supply chain, with significant contributions from companies across Europe, Asia, and the Middle East, indicating that chip stocks in these regions merit investor attention [3] - The focus is on three international chip stocks involved in wafer fabrication equipment (WFE), which are crucial for chip manufacturers [3] Group 2: Company Spotlight - Tokyo Electron - Tokyo Electron, with a market capitalization exceeding $110 billion, is a leading player in the WFE industry, demonstrating consistent revenue growth of 11% or more in three of the last four quarters [4] - The company specializes in machines that support various stages of the chip-making process, particularly excelling in coater/developer systems that work in conjunction with ASML's lithography machines [4] - Tokyo Electron holds a 100% market share in supplying coater/developers for extreme ultraviolet (EUV) lithography, a critical technology for advanced chip production, positioning the company favorably for long-term growth [5]