Applied Materials (AMAT): Analyzing the Next Stock to Breach the Trillion Dollar Barrier

We just covered the 15 AI Stocks That Could Break the Trillion Dollar Barrier and Applied Materials, Inc. (NASDAQ:AMAT) ranks 8th on this list.

Applied Materials, Inc. (NASDAQ:AMAT) is one of the AI stocks that could break the trillion dollar barrier. The firm has emerged as the world’s leading provider of materials engineering solutions—the tools needed to actually build the advanced chips designed by NVIDIA and AMD. Investors are flocking to Applied as the firm is viewed as the primary beneficiary of the industry’s shift to GAA transistor architecture. The transition from FinFET to GAA increases the number of process steps where Applied Materials is the market leader. CEO Gary Dickerson recently noted that GAA nodes grow Applied’s available market considerably. Elite investors are betting that AMAT will gain multiple points of market share as chipmakers like Intel (with 18A) and TSMC ramp up these complex 2nm and 3nm designs in late 2026.

Applied Materials, Inc. (NASDAQ:AMAT) stock is also being viewed as a memory play due to the explosion in High-Bandwidth Memory (HBM). HBM requires 3-4 times more wafer starts than standard DRAM and relies heavily on advanced packaging techniques like through-silicon vias (TSVs). Applied’s management expects its advanced packaging revenue, specifically in HBM and 3D chiplet stacking, to be one of its fastest-growing segments in 2026. Reports that Musk’s team has contacted Applied Materials for specialized chip-equipment supplies have signaled a massive new potential demand source.

READ NEXT: Israel Englander Stock Portfolio: Top 10 Stock Picks and Billionaire Stan Druckenmiller’s 10 Small and Mid-Cap Stock Picks with Huge Upside Potential.

Disclosure: None. Follow Insider Monkey on Google News.