Can AMAT's Semiconductor Systems Segment Sustain Momentum in 2026? - The Globe and Mail

Applied Materials’ Semiconductor Systems segment has emerged as the company’s primary growth engine, driven by the rapid expansion of AI infrastructure and increasing demand for advanced semiconductor... Read original →

Applied Materials’ Q2 FY2026 surge reflects AI-driven capex reallocating toward sub-3nm logic and HBM, not general semiconductor strength. Its new GAA tools and Aether dry-resist are accelerating the FinFET-to-GAA transition, forcing upstream ALD/PECVD suppliers to enhance atomic-level precision while spurring hybrid bonding adoption in advanced packaging. Geopolitical compliance now materially inflates costs: U.S. export controls extending to mature-node tools compel AMAT to localize service ecosystems in Taiwan, China, and South Korea, increasing operational friction. Against ASML’s High-NA EUV dominance and Lam’s Akara etch entrenchment in 3D DRAM, AMAT leverages system-level integration as its moat. Over the next 18 months, advanced packaging equipment will bifurcate—platform vendors compatible with front-end processes will capture over 80% of new orders, leaving single-function toolmakers at risk of obsolescence.