Can AMAT's Semiconductor Systems Segment Sustain Momentum in 2026? - TradingView

Applied Materials’ Semiconductor Systems segment demonstrated robust growth in Q2 FY2026, with revenues reaching $5.97 billion, up 10% YoY and 16% sequentially. Profitability improved, with gross marg... Read original →

Applied Materials’ Q2 FY2026 surge reflects structural AI-driven capex, not cyclical noise. Its new ALD and PECVD tools directly tackle parasitic capacitance in GAA transistors, accelerating sub-3nm logic ramp and forcing ASML to expedite High-NA EUV deployments while raising the bar for Lam’s 3D DRAM etch dominance. Geopolitical compliance is inflating operational costs—tighter U.S. export controls compel AMAT to reconfigure support models across Taiwan, China and mainland China, increasing localization expenses. In response, Lam may push integrated etch-deposition platforms, while ASML could lock in foundry partnerships via High-NA exclusivity. Over the next 18 months, advanced packaging and HBM expansions will generate equipment reuse upside, but any AI capex deceleration risks sharp earnings revisions for AMAT’s premium valuation.