Zacks Equity Research highlighted Applied Materials as a key beneficiary of artificial intelligence proliferation. The report notes strong AI-driven demand shifts wafer fabrication equipment spending towards leading-edge technology. Applied Materials holds a strong market position in this segment.
Applied Materials anticipates leading-edge foundry-logic, DRAM, and advanced packaging will constitute about 80% of wafer fab equipment growth in 2026 and 2027. The company projects its advanced packaging revenues to surge over 70% in 2026. This surge is bolstered by demand for High Bandwidth Memory (HBM) and next-generation chip architectures.