Applied Materials Highlights AI-Driven Chip Demand, 30% Systems Growth at JPMorgan Event

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Wed, May 20, 2026 astatine 8:05 AM CDT 7 min read

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Applied Materials said AI-driven spot request is inactive strong, particularly successful precocious logic, DRAM, high-bandwidth representation and precocious packaging, with astir 80% of incremental wafer fab instrumentality spending concentrated successful those areas.
The institution raised its outlook for systems concern growth to 30% this calendar year, up from 20%, and said the summation is being driven by caller capacity, fab conversions and productivity upgrades alternatively than a elemental pull-forward of demand.
Applied Global Services is benefiting from customers’ propulsion to maximize mill output, with semipermanent contracts, spare parts and bundle helping enactment mid-teens yearly maturation and improving margins.

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Applied Materials (NASDAQ:AMAT) executives highlighted continued momentum tied to artificial intelligence-related semiconductor demand, with spot concentrated successful precocious logic, DRAM and precocious packaging, during a presumption astatine J.P. Morgan’s 54th yearly Technology, Media and Communications Conference.

Tim Dao, elder vice president astatine Applied Materials and caput of the company’s Applied Global Services, oregon AGS, business, said customers are focused connected expanding mill output and improving “good dice out” arsenic AI-related request drives capableness constraints crossed the semiconductor proviso chain.

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J.P. Morgan semiconductor and semiconductor superior instrumentality expert Harlan Sur noted that Applied precocious reported a stronger maturation outlook, including an expected 30% summation successful its systems concern this calendar year, up from a anterior outlook of 20% growth. Dao said the incremental spot was not chiefly the effect of a “pull-in” from 2027 into 2026, but alternatively reflected a operation of caller capacity, mill conversions and productivity upgrades wrong existing fabs.

AI Demand Drives Capacity and Productivity Push

Dao said customers are gathering retired greenfield facilities, but besides uncovering “creative” ways to adhd capableness much quickly. He cited examples including a lawsuit procuring a completed ammunition from different customer, a 200-millimeter mill being repurposed into a packaging facility, and an older 2D NAND mill being converted into a DRAM factory.

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He besides said customers are replacing older, lower-throughput tools with higher-productivity platforms to region bottlenecks successful existing accumulation lines.

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