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Applied Materials (AMAT) recently launched its brand new $5 billion Equipment and Process Innovation and Commercialization (EPIC) Center in Silicon Valley, adding one more sign for investors of how aggressively the semiconductor giant is gearing up for the artificial intelligence (AI) era. The company considers the 600,000-square-foot center to be the biggest semiconductor equipment and process technology R&D center in the world.
Semiconductor stocks have been under pressure recently amid concerns about the returns from enormous spending on AI infrastructure development. The PHLX Semiconductor Index ($SOX) has shown several drops, while AMAT stock has fallen more than 18% over the past five trading days. However, this latest move from the company suggests that Applied Materials is preparing for high demand far beyond the current cycle.
