This New Spinoff Is Helping to Fuel Data Center Chip Growth

1 week ago 7

Rich Duprey

Tue, November 11, 2025 astatine 9:15 AM CST 4 min read

Qnity Electronics (Q) spun disconnected from DuPont successful November and was instantly added to the S&P 500.
Two-thirds of Qnity gross ties straight to semiconductors and AI with materials similar CMP pads and thermal absorption solutions.
Qnity posted 11% income maturation to $1.3B successful Q3 and raised full-year guidance to $4.7B.
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You apt haven't heard of Qnity Electronics (NYSE:Q) before, but you volition undoubtedly perceive a batch much astir it arsenic the artificial quality (AI) roar continues ramping higher. Spun disconnected from specialty chemicals elephantine DuPont (NYSE:DD), Qnity began trading connected the NYSE connected Nov. 3 and was instantly added to the S&P 500 owed to its scale.

Now operating arsenic a standalone business, the high-tech electronics steadfast tin absorption its investments successful increasing the information halfway spot and borderline instrumentality expertise it honed erstwhile it was portion of DuPont's conglomerate.

In fact, that was portion of the crushed down the spinoff: to destruct the "conglomerate discount," oregon the market's inclination to undervalue diversified firms by averaging disparate concern performances. By splitting, DuPont tin sharpen its attraction connected unchangeable concern segments, similar h2o and extortion solutions, portion freeing Qnity to pursuit assertive maturation successful semiconductors and electronics.

Because it was hidden wrong the specialty chemic maker's shadow, Qnity has remained mostly hidden from capitalist presumption contempt having softly helped to premier the pump of the AI revolution. Is this banal 1 that deserves to beryllium successful your portfolio?

Qnity's portfolio powers the semiconductors astatine the bosom of AI systems, from information halfway chips to borderline devices. Two-thirds of its gross ties straight to this sector, supplying captious materials similar chemic mechanical planarization (CMP) pads for precise wafer polishing, Kapton polyimide films for interconnects, and thermal absorption solutions to dissipate vigor successful power-hungry GPUs.

These aren't flashy products similar ASML's (NASDAQ:ASML) utmost ultraviolet (EUV) lithography machines that are captious for producing precocious AI chips, but indispensable enablers: without them, precocious nodes beneath 5 nanometer -- cardinal for AI's low-latency demands -- couldn't standard efficiently. As AI workloads explode, chipmakers similar Taiwan Semiconductor Manufacturing (NYSE:TSM) and Intel (NASDAQ:INTC) ramp production, pulling Qnity along.