Lam Research Set to Gain From $135 B, 23% Rise in Wafer Equipment Demand
BofA Securities forecasts wafer fabrication equipment spending to reach $135 billion in 2026, a 23% year-over-year increase driven by AI, DRAM and NAND capacity expansions that should boost Lam Research’s order backlog. Applied Materials’ $5 billion EPIC Center and Micron partnership highlight industry-scale R&D investments fueling equipment demand.
1. Analyst Forecast Predicts 23% Equipment Spending Growth
BofA Securities projects wafer fabrication equipment spending will hit $135 billion in 2026, marking a 23% year-over-year rise propelled by surging demand for AI, DRAM and NAND chip production.
2. Industry-Scale R&D Boosts Demand
Applied Materials’ planned $5 billion EPIC Center in Silicon Valley, alongside its collaboration with Micron on next-gen memory, underscores major research and capacity investments driving wafer tool orders.
3. Lam Research Positioned for Growth
Lam Research is poised to capitalize on the multi-year spending surge as chipmakers expand capacity for advanced AI and memory production, likely boosting its order backlog and revenue outlook.