Semiconductor Equipment Leaders Reap Record Revenues from the AI Memory Capex Boom
Upstream wafer fab equipment (WFE) vendors are emerging as the most durable beneficiaries of the AI-driven memory capacity race (detailed in The AI Memory Capacity Expansion Race and the Late-Cycle Capex Boom). While memory chipmakers face cyclical commodity risks and spot-market volatility, equipment giants collect revenue 18 to 24 months before production ramps. In mid-2026, the three dominant equipment providers—Applied Materials, Lam Research, and ASML—reported record-breaking results and raised their forward WFE spending forecasts, driven by massive HBM and advanced packaging buildouts.
Applied Materials (AMAT): Cashing the HBM Buildout
Applied Materials reported record Q2 FY2026 results on May 14, 2026, with revenue of $7.91 billion (+11% YoY) and non-GAAP EPS of $2.86 (+20% YoY). DRAM surged to 34% of Semiconductor Systems revenue (up from 27% a year earlier), directly reflecting HBM capacity expansions at leading memory fabs. Citing real-time visibility into customer fab expansion plans, CEO Gary Dickerson raised the company’s semiconductor equipment growth outlook to "more than 30% in calendar 2026" (up from the prior "over 20%" guidance). Advanced packaging revenue alone is projected to grow by more than 50% in calendar 2026.
According to Applied Materials' Q2 FY2026 earnings release:
"CEO Gary Dickerson raised the company’s semiconductor equipment growth outlook to more than 30% in calendar 2026, up from the prior 'over 20%' guidance, citing real-time visibility into customer fab expansion plans across leading-edge logic, DRAM, and advanced packaging."
Lam Research (LRCX): High Etch Intensity and Raised WFE Spending
Lam Research reported Q3 FY2026 revenue of $5.84 billion (up 24% YoY), marking its third consecutive record revenue quarter. DRAM accounted for 27% of systems revenue, driven by HBM investments and the industry's transition to 1c node devices. June quarter guidance was raised to approximately $6.60 billion. Crucially, Lam’s management raised its global wafer fabrication equipment (WFE) spending forecast to $140 billion in 2026 (up from the prior $135 billion estimate), driven by accelerating multinational spending and new cleanroom capacity.
ASML: EUV Monopoly Backlog and Raised Guidance
ASML reported Q1 2026 net sales of €8.8 billion with a 53% gross margin, prompting management to raise full-year 2026 revenue guidance to €36 billion to €40 billion (up from €34 billion to €39 billion). The company closed 2025 with a record €38.8 billion backlog, of which €7.4 billion in Q4 bookings came from EUV systems. While TSMC disclosed it will skip High-NA EUV through 2029 due to its €350 million price tag, this shifts early High-NA adoption to Samsung, Intel, and SK Hynix, broadening the customer base for ASML’s highest-margin tools.
These figures show that the physical tools needed to build next-generation memory are in higher demand than ever, insulating WFE vendors from immediate spot pricing volatility.