An under-the-radar AI stock just delivered the best quarter of the chip sector

Qnity Electronics delivered "the single best quarter that I have seen from the semiconductors" on Thursday, Jim Cramer said. Given the beats across the board and a sunnier outlook, it's a take that's hard to argue with. Revenue in the first quarter increased 17.6% from a year ago to $1.32 billion, outpacing the $1.27 billion expected by LSEG. Earnings per share (EPS) jumped 33.3% year over year to $1.08, also outpacing the consensus estimate of 92 cents, according to LSEG. Q 1Y mountain Qnity 1-year return Shares popped on the release but drifted lower with the overall market. By late afternoon, however, they were looking to close at a new all-time high. Bottom line This was Qnity's second quarter since spinning off from DuPont in November, and it was another remarkable one. Along with beating on sales and earnings in each of its two operating segments, the company's operating earnings before interest, taxes, depreciation, and amortization (EBITDA) margins also came in better than forecast. It was another win for this red-hot beneficiary of the artificial intelligence boom. The management team also raised its full-year guidance for the top and bottom lines above the quarterly results. That's notable because it means management isn't simply passing through the first-quarter strength, but expects results in each future quarter to beat estimates. In other words, the stock is cheaper than previously thought on an earnings basis, and estimates are set to move higher. …