Applied Materials sees AI-driven growth continuing strongly through 2027 with multi-year customer orders.

Applied Materials CEO Gary Dickerson revealed at a Goldman conference that the company has multi-year order books from customers driven by AI chip demand, expecting nearly 40% growth in 2026 and strong growth in 2027. The company supplies essential semiconductor manufacturing tools used in AI chip production, with significant revenue gains in DRAM and advanced packaging segments. Peer companies Lam Research, KLA, and ASML also report strong demand and raised outlooks, confirming a robust semiconductor equipment cycle fueled by AI. Despite a high stock valuation, Applied Materials' broad market exposure and customer visibility support continued growth, though investors should consider cyclical risks.