• In early May 2026, Applied Materials announced plans for senior executives to speak at multiple investor and industry conferences and reached an agreement to acquire ASMPT’s NEXX business to expand its panel-level advanced packaging capabilities for AI chips.
• Together, these moves highlight how Applied Materials is broadening its role across the AI semiconductor supply chain, from advanced packaging technologies to direct engagement with investors on its growth priorities.
• Next, we’ll examine how the NEXX acquisition shapes Applied Materials’ investment narrative, particularly around future packaging demand and AI exposure.

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Applied Materials Investment Narrative Recap

To own Applied Materials, you have to believe that AI driven demand for advanced chips will keep requiring more complex manufacturing and packaging tools, where the company already plays a central role. The NEXX acquisition and stepped up investor outreach look directionally aligned with that AI packaging theme, but do not materially change the key near term catalyst, which remains upcoming earnings on May 14, or the biggest risk around export restrictions and geopolitical exposure.

The announcement that Applied Materials will acquire ASMPT’s NEXX business is most relevant here, because it directly ties the story to panel level advanced packaging for AI accelerators. By adding NEXX’s large area electrochemical deposition tools and team, Applied is deepening its exposure to the part of the supply chain that aims to enable larger, more power efficient AI chips, an area many analysts already see as a core earnings driver over the next few years.

But at the same time, investors should be aware that rising Asian equipment competition and evolving trade rules could still...

Applied Materials' narrative projects $42.5 billion revenue and $12.5 billion earnings by 2029.

Uncover how Applied Materials' forecasts yield a $422.97 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already modeling Applied’s revenue reaching about US$49.7 billion and earnings of roughly US$15.4 billion by 2029, so when you compare that to the baseline worries about export limits and rising Asian rivals, the bullish view looks far more aggressive, and the new AI packaging deal could push either narrative to evolve from here.

Explore 16 other fair value estimates on Applied Materials - why the stock might be worth less than half the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Applied Materials research is our analysis highlighting 4 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.