Applied And Lam Are Overlooked Chip Equipment Stocks

The AI chip sector has been picked clean of bargains, as stocks of chip designers, chip manufacturers and chip manufacturing equipment makers have all soared in the past year. But that doesn’t mean there aren’t still some opportunities if you know where to look.

One example: Applied Materials, which makes machinery used in chip etching and deposition for memory chips—among the most highly sought-after components used in AI chips. As memory chip makers have quickly expanded manufacturing, companies like Applied and its nearest rival, Lam Research, have enjoyed surging demand for their products.