Nomura Small Cap Core Fund on Ultra Clean Holdings Inc.

Ultra Clean sits at the intersection of AI-driven semiconductor demand and a multiyear expansion in wafer-fabrication equipment spending. Management believes the semiconductor industry is still in the early stages of an AI-driven expansion, with momentum expected to strengthen through the second half of 2026 and into 2027. The fund also highlights Ultra Clean's manufacturing network, which can support roughly $4 billion of annual revenue with modest incremental capital. That creates the potential for meaningful operating leverage as industry volumes rise.