Applied Materials lags in chip equipment market as global spending jumps 23% in 2026

Global semiconductor equipment spending is set to rise 23.1% to $143.9 billion in 2026, driven by AI and advanced chip tech. However, Applied Materials' market share fell from 20.0% in 2024 to 17.9% in 2025, with only 1.0% revenue growth in H1 2026, far behind competitors Lam Research, KLA, and ASML. These rivals are gaining share by capitalizing on advanced manufacturing processes, while Applied Materials faces pressure from both established competitors and rapidly growing Chinese suppliers. The company's ability to recover market share depends on a significant revenue acceleration in the second half of 2026, making its outlook uncertain for investors.

Applied Materials is trading at USD 507.03 on Pluang, down 0.50% as of Oct 11, 2026 23:11 WIB. Its competitors Lam Research and KLA are also slightly down, while ASML is up 0.60% at USD 1,780.34, reflecting varied investor sentiment in the chip equipment sector.