• In March 2026, Applied Materials said it would increase its quarterly cash dividend by 15%, from US$0.46 to US$0.53 per share, and announced long-term R&D collaborations with Micron and SK hynix to develop next-generation DRAM, high-bandwidth memory, NAND and advanced packaging for AI and high-performance computing at its new US$5.00 billion EPIC Center.
• Together, the rising dividend and deep memory partnerships highlight Applied Materials’ dual emphasis on returning cash to shareholders while embedding its tools and expertise at the heart of future AI-focused memory manufacturing.
• Next, we’ll examine how partnering with Micron and SK hynix at the EPIC Center could reshape Applied Materials’ investment narrative.

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Applied Materials Investment Narrative Recap

To be comfortable owning Applied Materials, you need to believe that AI, high‑performance computing and advanced memory will keep driving demand for its tools, while export controls and customer concentration remain the key swing factors. In that context, the Micron and SK hynix EPIC Center partnerships look like a clear positive for the near term AI memory buildout, while the higher dividend does not materially change the biggest current risk around China‑related license and regulatory uncertainty.

Among the recent announcements, the long‑term R&D collaborations with Micron and SK hynix at the new US$5.00 billion EPIC Center stand out as most relevant. They tie Applied’s equipment directly into next‑generation DRAM, HBM, NAND and advanced packaging programs that are central to AI and high‑performance computing, reinforcing one of the key catalysts analysts focus on: deeper integration with leading memory makers at the process‑development stage.

But against all this good news, investors should also be aware that growing export restrictions and China exposure could still...

Applied Materials' narrative projects $32.5 billion revenue and $9.2 billion earnings by 2028. This requires 4.3% yearly revenue growth and a $2.4 billion earnings increase from $6.8 billion today.

Uncover how Applied Materials' forecasts yield a $398.73 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts, who were already modeling revenue of about US$35.2 billion and earnings near US$9.8 billion by 2028, see EPIC‑style partnerships as proof that Applied can offset risks like tighter China export rules, while more cautious views remind you that such heavy reliance on advanced chip capex can cut both ways if industry spending patterns change.

Explore 19 other fair value estimates on Applied Materials - why the stock might be worth less than half the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Applied Materials research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Applied Materials research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Applied Materials' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.