Applied Materials CEO: AI demand drives 8-quarter order visibility

Dickerson emphasized that DRAM revenue, including HBM packaging, grew 52% year-over-year to record levels, while advanced packaging is expected to expand by more than 70% in 2026. He noted that customer visibility now extends in some cases to 2030, with the company planning to double its quarterly system output by 2028. This bullish outlook is corroborated by peers such as Lam Research, KLA, and ASML, which have also raised their outlooks and capacity plans in response to sustained AI infrastructure buildout.

Despite the strong fundamental data, Applied Materials shares have already risen significantly, trading at a forward P/E of 26x. While the contracted demand supports near-term growth, investors face cyclical risks inherent in semiconductor equipment sales. The broad exposure across deposition, etch, and packaging makes Applied a diversified play on the AI hardware supply chain, though the stock price currently reflects much of this optimism.