Ichor Holdings Ltd. (NASDAQ:ICHR), a designer and manufacturer of critical fluid delivery subsystems for the semiconductor industry, saw its stock soar 5% during Monday's intraday trading session. This surge comes amid rising optimism about a rebound in semiconductor demand, fueled by the rapid growth and adoption of artificial intelligence (AI) technologies.

The semiconductor industry is poised for a robust year in 2025, with Deloitte projecting global sales to reach $697 billion, representing an 11.2% year-over-year growth. This growth is largely driven by advancements in AI and high-performance computing, which have significantly increased the demand for advanced semiconductors across the entire supply chain, from lithography to equipment and packaging.

Ichor Holdings, a key player in the small-cap semiconductor space, has positioned itself as a beneficiary of this growth trend. The company recently reported strong Q4 2024 results, with revenue of $233 million, marking a 10.5% quarter-on-quarter increase, and positive guidance for Q1 2025. The company's CEO, Jeff Andreson, highlighted a strengthened customer demand profile, indicating a robust business environment for leading-edge foundry, logic, and memory investments.