Qnity Electronics

Qnity sells materials that get used up every time a chip is made, so it earns money on volume no matter which chipmaker wins the AI race. Sales jumped 22 percent last quarter to about 1.6 billion dollars. The connection and wiring side, which helps signals and power move inside AI servers, grew 30 percent to 759 million dollars and now makes up almost half the business.

Adjusted earnings climbed 55 percent to 306 million dollars, and core operating profit rose 36 percent to 503 million dollars. That makes ten straight quarters of profitable growth. Management raised its full year outlook for the second quarter in a row and now expects as much as 5.83 billion dollars in sales.

The official bottom line went the other way. Reported net income fell 12 percent to 196 million dollars, and reported profit per share slid to 87 cents from 1.01 dollars a year ago. The costs of running as its own company, plus interest on its debt, are still dragging down the headline number even as the business underneath grows.

Qnity has been a standalone public company for only about one year, so its track record is still short. Much of its business runs through Asia, including China, Taiwan, and South Korea, and the company itself flags trade restrictions and geopolitical conflict as real risks. One policy change could dent that 5.8 billion dollar sales plan.