Posted 2/24/2024, 10:15:00 AM
Applied Materials Poised for Growth as AI Chip Demand Booms
- Demand for AI chips is booming, benefiting Nvidia but leaves it with expensive valuations
- Applied Materials produces semiconductor manufacturing equipment and is benefiting from increased spending on AI chips
- Applied Materials is seeing strong demand growth in areas like high-bandwidth memory and advanced chip packaging used in AI
- New transistor technology needed for advanced AI chips, like gate-all-around transistors, expands Applied Materials' market
- Applied Materials trades at a lower valuation than Nvidia but could see accelerating growth from the AI semiconductor boom