Applied Materials has outperformed the S&P 500 over the past five years, benefiting from the semiconductor market’s recovery. While it’s not a top AI play, its stock has risen nearly 270% in that time. The company is a major supplier of semiconductor manufacturing equipment, with 73% of revenue coming from its semiconductor systems business. Growth accelerated in fiscal 2024 and 2025 due to the AI market, memory market recovery, stabilized supply chain, and lower interest rates. Analysts expect modest revenue and EPS growth for fiscal 2025 and 2026. While a solid long-term play, there may be better options for investing in the AI chipmaking boom.

Read more at Nasdaq: Is Applied Materials Stock a Buy as AI Chip Manufacturing Surges?