While the semiconductor chip shortage and supply chain issues exacerbated by rising COVID-19 cases in China and the Russia-Ukraine war are impacting the industry, the robust demand from the automotive and electronics industries has allowed companies to raise prices for their chips and generate substantial profits. Moreover, the passage of the $52 billion CHIPS Act is likely to strengthen domestic semiconductor manufacturing and research. According to BlueWeave consulting, the global semiconductor market is estimated to grow at a CAGR of 5.2% between 2022 and 2028. Therefore, both Applied Materials, Inc. (AMAT) and Lam Research Corporation (LRCX) should benefit.
AMAT provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems; Applied Global Services; and Display and Adjacent Markets.
