Nvidia and Micron Technology have drawn significant investor attention as they power AI infrastructure, but savvy investors may also want to turn some of that attention to Applied Materials (NASDAQ: AMAT).
Applied Materials doesn’t make chips, but it designs vital equipment that chipmakers use to create their chips
In short, Applied Materials is an enabler of chipmakers, but that’s not the only thing you need to know when deciding if the stock is a good buying opportunity. A star-studded customer list Applied Materials isn’t the only company that produces equipment chipmakers need to create their chips, but it is the largest semiconductor equipment provider in the U.S. The company’s fiscal 2026 second-quarter results highlighted several customer partnerships that suggest accelerated revenue growth is on the way.
In its release, Applied Materials mentioned agreements and partnerships with Taiwan Semiconductor Manufacturing, Micron, and SK Hynix. All of these companies have been working together for years, and the parabolic revenue growth they are seeing should translate into higher revenue growth for Applied Materials. The company delivered 11% year-over-year revenue growth in its fiscal 2026 second quarter, which ended April 26, but it expects at least 30% revenue growth for its semiconductor business in calendar 2026.