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Applied Materials forecasts 20% growth for fiscal year 2026 driven by TSMC and advanced nodes
Saturday, March 28, 2026 at 03:52 PM
Applied Materials projects its semiconductor equipment revenue will grow by at least 20% in fiscal year 2026. This growth is expected to be driven by leading-edge logic and memory (DRAM/HBM) segments, offsetting declines in China. TSMC, which accounts for 19% of Applied Materials' revenue, is expected to significantly increase spending as it expands capacity for FinFET and GAA technology nodes.
Context
As of March 2026, Applied Materials (AMAT) has forecasted a significant 20% growth in its semiconductor equipment business for the current calendar year. This surge is primarily fueled by the accelerating global transition toward Artificial Intelligence (AI) infrastructure, which necessitates advanced manufacturing capabilities. The company is capitalizing on a major technology inflection as the industry shifts to next-generation architectures like Gate-All-Around (GAA) transistors and high-performance memory.
A critical driver for this growth is TSMC, which accounts for approximately 19% of Applied Materials' revenue. The expansion of TSMC’s capacity across FinFET and advanced nodes is expected to trigger a substantial jump in equipment orders. With demand softening in certain legacy markets, the company's growth is now heavily concentrated in leading-edge logic, High-Bandwidth Memory (HBM), and advanced packaging solutions. This cycle is notable for its resilience, with current industry troughs remaining higher than the peaks of previous investment cycles.
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