DuPont Spinoff Qnity Starts Trading Today. What to Know.

DuPont spinoff Qnity Electronics starts trading on the NYSE on Monday. It’s a play on the grow of computing power. (Mark Makela/Getty Images)

Key Points

• Qnity Electronics, a DuPont spinoff, begins trading on the NYSE, focusing on semiconductor and electronics materials.
• The company projects the global semiconductor market to grow to $1.3 trillion by 2030 from $740 billion today.
• Qnity, with 2025 sales of $4.6 billion, generates approximately 80% of its revenue from Asia.

Investors have a new way to play the growth of semiconductors and artificial intelligence, courtesy of DuPont de Nemours .

A company spun out by DuPont, Qnity Electronics, starts trading on the New York Stock Exchange under the symbol “Q” on Monday. Qnity describes itself as “one of the largest global leaders in materials and solutions for the semiconductor and electronics industries,” with some 10,000 employees worldwide.

Shares have been trading on a “when issued” basis, closing at $95 on Friday. Shares were up 4.6% in early trading on Monday, while the S&P 500 and Dow Jones Industrial Average were up 0.4% and flat, respectively.

The company provides chemicals and materials used to manufacture semiconductors and circuit boards. Semiconductors, of course, are big business, powering everything from smartphones to AI datacenters. Qnity projects the global market for semiconductors will grow to roughly $1.3 trillion in 2030, from $740 billion today.

That’s the tailwind to Qnity’s existing sales of some $4.6 billion in 2025 sales. Most semiconductors are made in Asia, which is why the company generates roughly 80% of its revenue in that region.

Earnings before interest, taxes, depreciation, and amortization, or Ebitda, profit margins are about 30%, according to the company.

DuPont shareholders got one share of Qnity for every two shares of DuPont held, which should leave the spinout with about 210 million shares outstanding. Including about $3.5 billion in net debt, Qnity is valued at roughly 17 times expected 2025 Ebitda.

Specialty chemical and similar industrial companies in the S&P 500 trade for an average of about 15.5 times trailing Ebitda, according to FactSet. The range is wide, though, going from about seven times to 22 times. Commodity chemical producer Eastman Chemical has the lowest multiple. Ecolab has the highest.

Valuation wasn’t an issue for Wolfe Research analyst Chris Parkinson. He launched coverage of Qnity shares with a Buy rating and $110 price target on Monday. The reason is simple: Growth. “Semi growth should accelerate in 2026/2027,” he wrote.

Growth is positive for most stocks. Still, spinoffs can drive some early selling in shares. DuPont investors, interested in holding larger conglomerates, might dump their stakes in Qnity to clean up their portfolios.

That’s something for investors to be wary of while trading in the new stock ramps up.

Write to Al Root at allen.root@dowjones.com