Applied Materials (AMAT) Is Positioned to Capture More of the AI Chip Manufacturing Boom

Applied Materials (AMAT) Is Positioned to Capture More of the AI Chip Manufacturing Boom

Mon, August 24, 2026 at 3:53 PM GMT+3 3 min read

• AMAT -3.33%
• CL=F -1.42%

Guinness Global Innovators, an investment management company, recently released its Q2 2026 quarterly investor update for its "Guinness Global Innovators Fund". You can download the letter here. The Guinness Global Innovators Fund focuses on investing in global companies that benefit from innovation in technology, communication, globalization, and management strategies. In the second quarter of 2026, the Guinness Global Innovators Fund returned 13.8% in GBP, compared with 13.0% for the MSCI World Index and 13.1% for the IA Global sector average. Easing Middle East tensions, falling oil prices, and renewed enthusiasm for artificial intelligence helped reverse much of the caution seen earlier in the year, with investors rotating back toward growth stocks and AI infrastructure beneficiaries. The Fund benefited from its overweight position in the Information Technology sector, while its overweight position in Communication Services detracted. Avoiding weaker Utilities, Materials, and Energy also supported relative performance. Also, please check the Fund's top five holdings to see its best picks for 2026.

In its second-quarter 2026 investor letter, Guinness Global Innovators Fund highlighted Applied Materials, Inc. (NASDAQ:AMAT) as a notable contributor. Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries. On August 21, 2026, Applied Materials, Inc. (NASDAQ:AMAT) closed at $492.32 per share. The one-month return of Applied Materials, Inc. (NASDAQ:AMAT) was -4.75%, and its shares gained 203.92% over the past 52 weeks. Applied Materials, Inc. (NASDAQ:AMAT) has a market capitalization of $390.7 billion .

Guinness Global Innovators Fund stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its Q2 2026 investor letter:

"The Fund holds three semiconductor equipment manufacturers, which provide wafer fabrication equipment (WFE). They were the top performers over the quarter: Applied Materials, Inc. (NASDAQ:AMAT) (+111.8% in USD) KLA (+105.2%), and LAM Research (+103.0%). WFE companies sit at the heart of the semiconductor value chain, supplying the highly specialised tools needed to manufacture advanced chips. As demand for AI, high-performance computing and data centre infrastructure has accelerated, foundries and integrated device manufacturers have responded with record levels of capital expenditure, driving a strong upcycle in WFE spending. The AI infrastructure build-out is particularly supportive, as hyperscalers require not only more chips, but increasingly complex and advanced architectures, materially increasing equipment intensity across the manufacturing process. As a result, these companies have been printing strong quarterly earnings reports. Applied Materials, as the broadest player across front-end, process control and advanced packaging, remains well positioned to capture share as chipmakers invest across the full manufacturing stack. Recent results and forward commentary from management pointed to a clear inflection in growth beginning in the second half of FY26, highlighting the firm's significant exposure and leading role in the global AI infrastructure build-out. While valuations of WFE stocks have become more demanding following strong performance, the combination of structural AI demand, rising equipment intensity and highly recurring service revenues reinforces our conviction in these holdings as high-quality beneficiaries of the next tailwind to semiconductor growth."

Applied Materials, Inc. (NASDAQ:AMAT) is in 39th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 138 hedge fund portfolios held Applied Materials, Inc. (NASDAQ:AMAT) at the end of the first quarter which was 111 in the previous quarter. While we acknowledge the potential of Applied Materials, Inc. (NASDAQ: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.

In another article, we covered Applied Materials, Inc. (NASDAQ:AMAT), noting its shares declined despite reporting a record quarter with guidance exceeding projections. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.