Applied Materials CEO Says the AI Boom Is Nowhere Near Over. His Order Book Is the Proof - Yahoo Finance

Applied Materials CEO Gary Dickerson stated at Goldman Sachs' Copia Conference that the AI boom is far from over, backing his claim with the company's robust order book. He forecasts nearly 40% growth... Read original →

The sustained demand for AI computing is reshaping the semiconductor equipment supply chain. Applied Materials’ order growth signals strong demand for advanced process nodes, particularly in deposition, etching, and ion implantation, driving equipment vendors to ramp production. ASML, LAM Research, and KLA have also raised 2026 forecasts, indicating a broader industry capital cycle. However, with valuations already reflecting optimism, concerns are mounting over the sustainability of growth. Geopolitical tensions, especially in the supply chains involving Taiwan, China and Hong Kong, China, continue to pose risks to technology transfers and equipment exports. If AI chip demand fails to maintain momentum, equipment firms may face inventory buildup and margin compression. Over the next 12–24 months, vendors will focus on capacity expansion and process innovation, particularly in AI-specific and advanced-node chips, intensifying market competition.