Applied Materials reported that its NAND flash memory equipment sales nearly doubled in fiscal year 2025, rising to $1.41 billion from $720 million a year earlier. The surge reflects broad adoption of 3D NAND architecture by leading memory manufacturers, who are expanding production capacity to support growing demand for high-density storage in datacenter and mobile applications.

The company highlighted strong bookings for its latest metrology and inspection systems, which enable tighter process control at advanced node geometries. During FY25, orders for the new systems represented 25% of total equipment revenue, underscoring customer urgency to implement in-line defect detection as they transition to sub-10-nanometer process nodes.

Susquehanna upgraded its view on Applied Materials shares from Neutral to Positive, assigning a potential upside of approximately 32.8%. The firm cited an improving order backlog and accelerating adoption of next-generation packaging and interconnect solutions as key drivers for further profit margin expansion over the next 12 to 18 months.

Several major asset managers have boosted their positions in Applied Materials. FengHe Fund Management added 97,500 shares—its 23rd largest holding—while Parnassus Investments raised its stake by 12.6%, acquiring over 422,000 additional shares. MASTERINVEST Kapitalanlage also expanded its exposure by 8.8%, reflecting growing confidence among institutional investors in the company’s technology leadership and long-term growth outlook.