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TTMI vs. UCTT: Which AI Hardware Supplier is a Smarter Investment?
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Key Takeaways
TTMI is benefiting from AI-driven demand for advanced PCBs, RF components and a growing backlog.
UCTT is expanding with semiconductor equipment demand, advanced packaging and manufacturing solutions.
UCTT trades at a lower forward earnings multiple than TTMI, offering a more attractive valuation.
TTM Technologies (TTMI - Free Report) and Ultra Clean Holdings (UCTT - Free Report) are key suppliers to the semiconductor manufacturing ecosystem and are benefiting from the rapid buildout of AI infrastructure. TTMI provides advanced printed circuit boards (PCBs) and RF components used in AI, networking and semiconductor applications, while UCTT supplies critical subsystems and ultra-high-purity manufacturing solutions that enable semiconductor equipment manufacturing.
Both companies are benefiting from rising semiconductor capital spending, driven by growing investment in AI data centers, advanced packaging and next-generation chip manufacturing. As AI infrastructure spending continues to accelerate, both stocks are well-positioned to capitalize on this secular growth trend. Let's delve deep to determine which one is a better investment now.
The Case for TTMI
TTM Technologies has established itself as a leading supplier of advanced PCBs, RF components and engineered interconnect solutions that support semiconductor manufacturing and AI infrastructure. As semiconductor devices grow more complex, demand has been driven by high-layer-count PCBs that enable advanced processors, accelerators and networking equipment used in AI data centers. TTMI has expanded its capabilities across advanced packaging, substrates and integrated modules, moving it higher up the electronics value chain while strengthening its position within the semiconductor supply chain. Its diversified global manufacturing footprint has enhanced supply chain flexibility, while its presence in aerospace and defense adds a stable, high-value demand source.
TTMI's growth has been supported by rising AI infrastructure investment across data center and networking applications, where higher-performance interconnect solutions have become critical. Forward demand visibility is reinforced by a book-to-bill ratio of 1.41 in the first quarter of 2026, with the commercial segment at 1.65, alongside a 90-day backlog of $787 million, up from $517 million a year earlier. Revenues rose 30% year over year to $846 million in the first quarter, driven by a 61% increase in data center and networking revenues, while aerospace and defense revenues grew 11%. Adjusted EBITDA margin expanded 40 basis points to 15.7% on a favorable mix and operating leverage.
The Zacks Consensus Estimate for TTMI's 2026 EPS is pegged at $4.13, down by 4 cents over the past 30 days, indicating 67.9% year-over-year growth, reflecting expectations of sustained earnings expansion as semiconductor capital spending and AI infrastructure investment continue.
Ultra Clean Holdings has built its business around critical subsystems, ultra-high purity manufacturing solutions and outsourced services that enable advanced semiconductor manufacturing, positioning it at the center of wafer fabrication equipment expansion. As AI-driven computing increases demand for advanced logic, high bandwidth memory and advanced packaging, UCTT has benefited from rising investment in semiconductor fabrication equipment. Its UCT 3.0 strategy, centered on ramp readiness, new product introduction and digital transformation, has strengthened manufacturing efficiency while enabling customers to accelerate production ramps. A scalable global manufacturing footprint has further enhanced the company's ability to support growing customer demand with limited incremental capital investment.
Higher process complexity and rising equipment intensity in deposition, etch, and advanced packaging have continued to expand UCTT's addressable market, while growing wafer starts have supported its services business. These trends have already begun translating into stronger financial performance. First-quarter 2026 revenues increased to $533.7 million, gross margin expanded 40 basis points sequentially to 16.5%, and EPS improved 7 cents sequentially to 31 cents. Second-quarter guidance pointed to further revenue and earnings growth, reflecting continued momentum across the semiconductor equipment market.
The Zacks Consensus Estimate for UCTT's 2026 EPS is pegged at $2.46 per share, unchanged over the past 30 days, suggesting 134.3% year-over-year growth as AI-driven semiconductor investments and WFE spending continue to support earnings expansion.
While both stocks have been exceptional year-to-date (YTD) performers, UCTT's 264.9% return has outpaced TTMI's 91.3% appreciation, reflecting Ultra Clean's sharper earnings growth trajectory tied to the WFE upcycle.
TTMI vs UCTT: YTD Performance
Image Source: Zacks Investment Research
UCTT offers a more attractive valuation, trading at 24.27X forward 12-month earnings versus 27.04X for TTMI. The lower multiple, combined with stronger earnings growth expectations, points to a more favorable risk-reward setup for UCTT.
TTMI vs UCTT: Valuation
Image Source: Zacks Investment Research
Conclusion
Both TTM Technologies and Ultra Clean Holdings remain well-positioned to benefit from accelerating AI infrastructure investment and rising semiconductor capital spending. TTMI continues to capitalize on strong demand for advanced interconnect solutions, supported by expanding AI networking deployments and a growing backlog. However, UCTT stands out with stronger projected earnings growth, superior year-to-date share price performance and a more attractive valuation.
UCTT currently sports a Zacks Rank #1 (Strong Buy), while TTMI has a Zacks Rank #2 (Buy). Given its favorable growth outlook and valuation, UCTT appears to be a smarter investment over TTMI at current levels. You can see the complete list of today's Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
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TTMI vs. UCTT: Which AI Hardware Supplier is a Smarter Investment?
Key Takeaways
TTM Technologies (TTMI - Free Report) and Ultra Clean Holdings (UCTT - Free Report) are key suppliers to the semiconductor manufacturing ecosystem and are benefiting from the rapid buildout of AI infrastructure. TTMI provides advanced printed circuit boards (PCBs) and RF components used in AI, networking and semiconductor applications, while UCTT supplies critical subsystems and ultra-high-purity manufacturing solutions that enable semiconductor equipment manufacturing.
Both companies are benefiting from rising semiconductor capital spending, driven by growing investment in AI data centers, advanced packaging and next-generation chip manufacturing. As AI infrastructure spending continues to accelerate, both stocks are well-positioned to capitalize on this secular growth trend. Let's delve deep to determine which one is a better investment now.
The Case for TTMI
TTM Technologies has established itself as a leading supplier of advanced PCBs, RF components and engineered interconnect solutions that support semiconductor manufacturing and AI infrastructure. As semiconductor devices grow more complex, demand has been driven by high-layer-count PCBs that enable advanced processors, accelerators and networking equipment used in AI data centers. TTMI has expanded its capabilities across advanced packaging, substrates and integrated modules, moving it higher up the electronics value chain while strengthening its position within the semiconductor supply chain. Its diversified global manufacturing footprint has enhanced supply chain flexibility, while its presence in aerospace and defense adds a stable, high-value demand source.
TTMI's growth has been supported by rising AI infrastructure investment across data center and networking applications, where higher-performance interconnect solutions have become critical. Forward demand visibility is reinforced by a book-to-bill ratio of 1.41 in the first quarter of 2026, with the commercial segment at 1.65, alongside a 90-day backlog of $787 million, up from $517 million a year earlier. Revenues rose 30% year over year to $846 million in the first quarter, driven by a 61% increase in data center and networking revenues, while aerospace and defense revenues grew 11%. Adjusted EBITDA margin expanded 40 basis points to 15.7% on a favorable mix and operating leverage.
The Zacks Consensus Estimate for TTMI's 2026 EPS is pegged at $4.13, down by 4 cents over the past 30 days, indicating 67.9% year-over-year growth, reflecting expectations of sustained earnings expansion as semiconductor capital spending and AI infrastructure investment continue.
TTM Technologies, Inc. Price and Consensus
TTM Technologies, Inc. price-consensus-chart | TTM Technologies, Inc. Quote
The Case for UCTT
Ultra Clean Holdings has built its business around critical subsystems, ultra-high purity manufacturing solutions and outsourced services that enable advanced semiconductor manufacturing, positioning it at the center of wafer fabrication equipment expansion. As AI-driven computing increases demand for advanced logic, high bandwidth memory and advanced packaging, UCTT has benefited from rising investment in semiconductor fabrication equipment. Its UCT 3.0 strategy, centered on ramp readiness, new product introduction and digital transformation, has strengthened manufacturing efficiency while enabling customers to accelerate production ramps. A scalable global manufacturing footprint has further enhanced the company's ability to support growing customer demand with limited incremental capital investment.
Higher process complexity and rising equipment intensity in deposition, etch, and advanced packaging have continued to expand UCTT's addressable market, while growing wafer starts have supported its services business. These trends have already begun translating into stronger financial performance. First-quarter 2026 revenues increased to $533.7 million, gross margin expanded 40 basis points sequentially to 16.5%, and EPS improved 7 cents sequentially to 31 cents. Second-quarter guidance pointed to further revenue and earnings growth, reflecting continued momentum across the semiconductor equipment market.
The Zacks Consensus Estimate for UCTT's 2026 EPS is pegged at $2.46 per share, unchanged over the past 30 days, suggesting 134.3% year-over-year growth as AI-driven semiconductor investments and WFE spending continue to support earnings expansion.
Ultra Clean Holdings, Inc. Price and Consensus
Ultra Clean Holdings, Inc. price-consensus-chart | Ultra Clean Holdings, Inc. Quote
Price Performance and Valuation of TTMI & UCTT
While both stocks have been exceptional year-to-date (YTD) performers, UCTT's 264.9% return has outpaced TTMI's 91.3% appreciation, reflecting Ultra Clean's sharper earnings growth trajectory tied to the WFE upcycle.
TTMI vs UCTT: YTD Performance
Image Source: Zacks Investment Research
UCTT offers a more attractive valuation, trading at 24.27X forward 12-month earnings versus 27.04X for TTMI. The lower multiple, combined with stronger earnings growth expectations, points to a more favorable risk-reward setup for UCTT.
TTMI vs UCTT: Valuation
Image Source: Zacks Investment Research
Conclusion
Both TTM Technologies and Ultra Clean Holdings remain well-positioned to benefit from accelerating AI infrastructure investment and rising semiconductor capital spending. TTMI continues to capitalize on strong demand for advanced interconnect solutions, supported by expanding AI networking deployments and a growing backlog. However, UCTT stands out with stronger projected earnings growth, superior year-to-date share price performance and a more attractive valuation.
UCTT currently sports a Zacks Rank #1 (Strong Buy), while TTMI has a Zacks Rank #2 (Buy). Given its favorable growth outlook and valuation, UCTT appears to be a smarter investment over TTMI at current levels. You can see the complete list of today's Zacks #1 Rank stocks here.