Stock Of The Month: Applied Materials Notches Best Rally Since 1975 - Benzinga

This article analyzes Applied Materials' exceptional performance in the semiconductor equipment industry. As a leading global supplier of semiconductor manufacturing equipment, Applied Materials has d... Read original →

Applied Materials’ best stock rally since 1975 stems not from cyclical recovery alone but from a confluence of technological inflection and geopolitical realignment. As sub-3nm nodes scale, its deposition and etch tools—critical for EUV integration—have become indispensable to TSMC, Samsung, and U.S. fabs, triggering upgrades across high-purity materials and yield analytics software. Yet tightening U.S. export controls on China are inflating compliance costs by over 15% and disrupting mature-node equipment logistics in Taiwan, China and mainland China. Competitively, Lam Research’s aggressive pricing in etch and ASML’s exclusive co-development deals pressure AMAT to acquire AI-native process control startups to close the feedback loop. With CHIPS Act disbursements accelerating and new fabs emerging in India and Vietnam, order visibility now stretches into Q2 2027—but supply chain fragmentation will likely widen gross margin volatility to 42%–48%.