Jim Cramer Says Applied Materials “Is in a Long-Term Bull Market” - Insider Monkey

Jim Cramer stated that Applied Materials is in a long-term bull market, citing the persistent global chip shortage as a key driver for sustained demand in semiconductor manufacturing equipment. During... Read original →

Jim Cramer’s bullish stance on Applied Materials reflects a recalibration to the convergence of sustained capex in semiconductor equipment and AI infrastructure build-out. Technically, AMAT’s integrated capabilities in pre-EUV deposition and etch are accelerating sub-3nm node adoption, raising validation barriers for foundries like TSMC, Samsung, and SMIC. On compliance, U.S. export controls—while dampening near-term China revenue—have accelerated AMAT’s localized support hubs in Southeast Asia and Taiwan, China, enhancing supply chain resilience. Competitively, ASML and Lam Research may respond with bundled software offerings or extended payment terms to capture budget share. Over the next 12–24 months, even if AI chip investment cools, persistent mature-node shortages will sustain equipment demand. With services contributing over 30% of revenue, AMAT’s business model exhibits superior cyclicality resistance versus peers.