AI-driven memory cycle powers Applied Materials’ 2026 growth surge - S&P Global

Applied Materials is experiencing significant growth in 2026, driven by AI-powered memory cycles. This trend reflects the sustained global demand for high-performance storage solutions, particularly i... Read original →

The AI-driven memory cycle is triggering a structural realignment in semiconductor equipment. Applied Materials leverages sub-3nm EUV and advanced packaging platforms not only to anchor HBM production but also to embed deposition, etch, and metrology deeply into AI chip supply chains—creating a formidable tech moat. This pressures Lam Research and TEL to accelerate integration of materials engineering with packaging solutions, while ASML faces geopolitical strain over EUV allocation amid U.S. export controls. Over the next 18 months, surging demand for HBM3E/HBM4 from AI clusters will force DRAM makers to skip 20nm-class nodes and leap directly to 1β or 1α, amplifying equipment vendors’ pricing power. Yet geopolitical risk looms: any U.S. expansion of restrictions—even on mature-node tools—could disrupt Applied Materials’ service networks in mainland China and Taiwan, China, undermining its lifecycle profitability model.