Meta to Begin Producing AI Chip Iris in September, Lifts Semiconductor Equipment Stocks

According to Reuters, Meta Platforms will begin producing its custom-built AI datacenter chip codenamed Iris in September, driving gains across semiconductor equipment stocks. The news sparked a rally in wafer fabrication equipment (WFE) suppliers including Applied Materials, Lam Research, and KLA, as these companies supply the tools needed to manufacture advanced silicon chips.

Citi predicts the global wafer equipment market will grow from approximately $145 billion this year to $200 billion by 2027 and $250 billion by 2028, driven by hyperscalers' expanding AI capital expenditures. Morgan Stanley and other investment banks have simultaneously raised price targets on equipment stocks, reflecting optimism that Meta's self-developed chip strategy will intensify demand for manufacturing equipment.