A Growing Supply Gap Has Analysts Eyeing Applied Materials (AMAT) - Yahoo Finance

As global demand for semiconductors continues to rise, a growing supply gap has drawn attention from analysts focusing on Applied Materials (AMAT). On June 17, Citi analyst Atif Malik raised AMAT's pr... Read original →

Applied Materials (AMAT) is capitalizing on a structural supply gap in memory equipment, particularly as NAND expansion drives surging demand for its etch and deposition tools. Technologically, this accelerates 3D NAND beyond 300 layers and forces DRAM makers to adopt High-κ/metal-gate processes to alleviate shortages. Its partnership with EssilorLuxottica targets AR’s core bottleneck: diffractive waveguide yields below 30%. AMAT’s atomic-layer deposition can dramatically improve nanoscale grating uniformity. Geopolitically, U.S. export controls boost near-term revenue but incentivize customers in Taiwan, China and mainland China to fast-track domestic alternatives like NAURA and AMEC. Competitor Lam Research may counter by acquiring optical inspection firms to challenge AMAT’s AR foothold. Over the next 18 months, AI-driven HBM demand will exacerbate DRAM capacity mismatches, allowing AMAT to leverage its Integrated Materials Solutions platform to lock in customers via system-level integration—creating a defensible moat beyond hardware sales.