Applied Materials Is Silently Powering the AI Boom. Here's Why.

Applied Materials, the largest U.S. semiconductor equipment provider, is positioned to benefit from the AI boom through partnerships with major chipmakers like TSMC, Micron, and SK Hynix. The company expects 30% revenue growth in its semiconductor segment for calendar 2026, up from 10.4% year-over-year growth in Q2, driven by a multiyear AI supercycle. However, the stock's P/E ratio has surged to over 50 from the mid-teens a year ago, leaving limited margin of safety despite strong fundamentals.