Nvidia and AMD Get the Headlines. The Real AI Winners Might Be Applied Materials and Lam Research.

When investors think about the AI boom, chipmakers like Nvidia (NVDA) and AMD (AMD) usually come to mind first. But behind them sits another group: the companies that build the equipment needed to manufacture those advanced chips. Applied Materials (AMAT) and Lam Research (LRCX) are two of the most important players in that overlooked corner of the AI supply chain, and neither gets the attention their chipmaking customers do.

Both companies benefit as chipmakers pour money into AI data centers, high-bandwidth memory (HBM), and advanced chip manufacturing. So the real question for investors is where that spending creates the better long-term investment. Applied Materials offers broader exposure across semiconductor manufacturing, while Lam Research has built a stronger position in specialized processes that become more important as chips grow more complex.