Applied Materials is rated Buy due to strong demand for AI-driven wafer fabrication equipment and favorable industry trends supporting robust earnings growth. The company’s forward price-to-earnings ratio of 32x is attractive compared to peers, justified by accelerating earnings per share growth and exposure to high-margin memory and logic chip technologies. Q1 FY2026 gross margin hit a record 49%, driven by strong performance in the DRAM segment, highlighting operational efficiency and leadership in advanced semiconductor manufacturing. Risks include potential impacts from U.S. export controls on China revenue and ongoing industry cyclicality, though Applied Global Services offers some counter-cyclical stability.
REX Shares has filed for the REX AI Chipmaking ETF, targeting the booming $1.3 trillion AI infrastructure sector. The fund tracks the VettaFi AI Chipmaking Index, focusing on companies involved in wafer fabrication equipment, advanced packaging, and ...
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