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Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) is one of the best semiconductor equipment stocks to buy.

Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) gave investors a fresh recovery signal on May 6, when it reported fiscal second-quarter revenue of $242.6 million, up from $162.0 million in the prior-year period. Net income came in at $35.1 million, or $0.66 per diluted share, while non-GAAP EPS was $0.79. The rebound was tied to stronger demand across the general semiconductor, memory, automotive, and industrial end markets, which keeps the company directly linked to a broader recovery in demand for assembly and packaging equipment.

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The forward guide was the more useful part of the update. Kulicke and Soffa said it expects fiscal third-quarter revenue of about $310 million, plus or minus $20 million, with non-GAAP diluted EPS of about $1.00, plus or minus 10%. The company also said it plans to raise fiscal 2026 capital spending from about $12 million to about $22 million to expand production of its thermo-compression bonding systems, supporting up to about $400 million in annual TCB system sales. That matters because advanced packaging is becoming a larger pressure point in AI and high-performance chip manufacturing.

Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) provides semiconductor assembly equipment and interconnect solutions used across automotive, compute, industrial, memory, communications, and related electronics markets.

While we acknowledge the potential of KLIC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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