AI-Fixated Traders Pile Into Teradyne, Other Obscure Chip Stocks

Chip stocks have become a favorite way to bet on artificial intelligence. But after big runups in companies like Broadcom Inc., investors are turning to an often overlooked group — suppliers of the gear used to make semiconductors.

Teradyne Inc., a provider of tools used for testing chips during the manufacturing process, has nearly doubled from an April low and is up more than 50% since late July. Meanwhile, Lam Research Corp. and KLA Corp. — two of the biggest US makers of machines used to produce semiconductors — are the fourth- and fifth-best performing stocks, respectively, in ...