Can AMAT's Semiconductor Systems Segment Sustain Momentum in 2026? - Yahoo Finance Australia

Applied Materials’ Semiconductor Systems segment delivered robust growth in Q2 FY2026, with revenues reaching $5.97 billion, up 10% year-over-year and 16% sequentially. Profitability strengthened, wit... Read original →

Applied Materials’ Q2 FY2026 surge reflects a structural shift in capex toward AI-driven logic and memory, not cyclical demand. With 67% of revenue from foundry/logic, the ramp of GAA transistors at 3nm intensifies reliance on atomic-layer processes like ALD—forcing tighter integration across materials purity and yield analytics. Geopolitical friction is raising hidden compliance costs: while Trillium tools aren’t explicitly restricted, any delay in fab expansions by customers in Taiwan, China or Korea could dent service margins. ASML’s EUV adoption in DRAM pressures Lam Research to counter with selective etch innovations to defend its memory stronghold. Over the next 18 months, HBM4 and advanced packaging will drive a ‘second wave,’ but volatility during DDR5/LPDDR5 transitions poses real risk. The decisive battleground? Establishing IP moats in dry-resist and hybrid bonding before competitors close the gap.