Applied Materials (AMAT) Bank of America 2026 Global Technology Conference summary

Market trends and growth drivers

• Semiconductor systems business growth forecast raised to over 30% due to strong demand, especially from AI-related investments and capacity expansions by cloud service providers.

• Leading edge logic, DRAM, and advanced packaging are experiencing robust growth, with customers optimizing clean room space and expanding output.

• Services business growth expectation increased to mid-teens, driven by a growing installed base and higher utilization across the ecosystem.

• DRAM and leading edge logic are both strong contributors to growth, with DRAM seeing more factory additions in the longer term.

• Clean room space is the primary constraint on growth, with fab construction taking three to four years and customers optimizing existing space.

Operational strategies and visibility

• Eight-quarter rolling forecasts from customers provide precise visibility into process technologies and tool requirements, aiding supply chain planning.

• Manufacturing and supply chain have been diversified regionally, with increased capacity and closer customer collaboration to support higher growth rates.

• Capacity planning balances scenario analysis to avoid missing demand surges, with investments in manufacturing and supply chain resilience.

Market share and technology leadership

• Growth this year is supported by favorable mix in leading edge, DRAM, and advanced packaging, where strong positions exist.

• Share gains in DRAM and leading-edge logic are expected to continue, aided by transitions to new transistor and wiring technologies.

• Advanced packaging investments include acquisitions in X-ray and fine line interconnects, with a focus on 3D stacking and hybrid bonding.