Better Semiconductor Equipment Stock: Applied Materials vs. Lam Research
The chipmaking equipment boom has supercharged growth for both companies, and their prospects suggest further upside in their stock prices.
Overview
Semiconductor equipment demand has boomed in recent years, driven by the strong demand for artificial intelligence (AI) chips, which explains why shares of Lam Research (NASDAQ: LRCX) and Applied Materials (NASDAQ: AMAT) have been in fine form this year.
While Lam stock has risen 84% in 2026, Applied Materials is sitting on slightly higher gains of 89%. However, both semiconductor stocks have pulled back over the past three months. Lam has retreated by 27% since reaching a 52-week high on June 30. Applied Materials stock also hit its 52-week high on that date, and it has lost nearly a third of its value since then.
Details
Savvy investors can consider using their slide as a buying opportunity. After all, sales of semiconductor manufacturing equipment are estimated to jump by 23% in 2026 to $166 billion, according to industry association SEMI. Importantly, spending on semiconductor manufacturing equipment is expected to jump to $201 billion in 2027 and $229.5 billion in 2028.
Source
Originally published at www.fool.com.