Qnity, Spun Off From DuPont, Emerges as a Quiet Linchpin of Chipmaking
Qnity, a roughly $25 billion specialty chemicals maker spun off from DuPont about a year ago, supplies materials chipmakers rely on. Its shares are up 47% in 2026, and two research firms began coverage with buy ratings this week.
The company produces many of the specialized chemicals and materials required to manufacture semiconductors. Since becoming an independent business, it has worked to establish itself as a critical link in the chip supply chain and, in CNBC's description, as an underappreciated way for investors to gain exposure to the AI boom. Qnity rarely makes headlines, but it has drawn more attention on Wall Street in recent months.
Its shares have retreated from their year-to-date highs but remain up 47% in 2026, the report said. Two research firms initiated coverage of the stock this week with buy ratings and price targets that imply further gains. CNBC's Investing Club holds the stock with a buy-equivalent 1 rating and a $180 price target.
Jim Cramer, who runs the Investing Club, said he wants exposure to that part of the market after the portfolio sold Corning. "I need the exposure to that segment after we sold Corning," Cramer said during the Club's Morning Meeting last Thursday, according to the report. He has similarly highlighted the AI exposure of other traditionally industrial holdings such as data center power suppliers GE Vernova and Eaton.
Chief executive Jon Kemp described Qnity's products as enabling customers' manufacturing processes and technology roadmaps. He said the secret to the company's success has been what he called the "power of shrink," and increasingly the "power of shrink and stack."
At the company's research and development facility outside Boston, CNBC toured cleanrooms used to test the chemicals and materials before they reach semiconductor manufacturers, and spoke with its scientists about the growing complexity of chipmaking and the work of preparing specialized materials for production. The report was accompanied by a video tour of the site.
Disclosures published with the report state that Cramer's charitable trust holds shares of Qnity, GE Vernova and Eaton. CNBC said Cramer waits 45 minutes after issuing a trade alert before buying or selling a stock in the trust's portfolio, and 72 hours if he has discussed the stock on CNBC television.