AI-driven data center demand boosts Applied Materials' wafer fab equipment growth to 80% in 2026

Applied Materials CEO Gary Dickerson highlighted at the Goldman Sachs conference that AI, especially in data centers, is a major growth driver for the company. The demand for leading-edge wafer fab equipment is surging, with 80% of the growth in 2026 coming from segments critical to AI data centers such as foundry-logic, DRAM, and advanced packaging. This shift reflects a broader industry trend where data center wafer starts are rapidly catching up to, and expected to surpass, smartphone wafer starts in the coming years. This strong demand visibility signals robust growth prospects for Applied Materials in the semiconductor equipment market.