Applied Materials, Inc. (NASDAQ:AMAT) is among the 12 Tech Stocks with Best Earnings Growth in 2026. On March 10, Applied Materials, Inc. (NASDAQ:AMAT) presented at the Cantor Fitzgerald Global Technology & Industrial Growth Conference, highlighting its strategic vision in the changing semiconductor landscape. The company outlined the growing demand for AI systems, which is projected to accelerate growth across its leading-edge logic, DRAM, and advanced packaging markets.

Although concerns related to lagging NAND growth exist, the overall outlook remains bullish, the leadership noted. All thanks to AI system demand and strategic investments in data centers, Applied Materials, Inc. (NASDAQ:AMAT) is well-positioned for strong growth. The company targets a free cash flow return of 80%-100%, with past year’s distributions at 86%. In 2026, the company’s silicon revenue is estimated to climb more than 20%, with potential for sustained double-digit growth in the upcoming year.

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Additionally, investments by leading cloud service providers in AI data centers are projected to surge to $700 billion from $600 billion in 2027. Leading logic, DRAM, and advanced packaging are poised to rise over 20% this year, with ICAPS remaining flat. As stated by Brice Hill, CFO of Applied Materials, Inc. (NASDAQ:AMAT),

“We’ve seen a lot of pull from our customers for more advanced logic, more DRAM, and more advanced packaging solutions.”

Back on March 5, Erste Group started coverage on Applied Materials, Inc. (NASDAQ:AMAT) with a Hold rating. The firm believes that the acceleration of AI is driving massive investments in advanced semiconductors, DRAM, and the latest technologies. The firm’s optimism aligns with the majority, as 78% of the analysts covering the stock are bullish on the company.

Applied Materials, Inc. (NASDAQ:AMAT), based in California, is a provider of manufacturing equipment, services, and software to industries such as the semiconductor and display industries. Founded in 1967, the company operates through Semiconductor Systems, Applied Global Services, and Display segments.

While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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