Amid rising geopolitical tensions and scrutiny over potential global AI-chip export controls, Applied Materials has been included in the S&P 100, marking a significant milestone for the company. This recognition underscores its critical role in the manufacturing of AI chips, even as investor sentiment remains cautious due to external pressures.
In late February 2026, the company presented at the SPIE Advanced Lithography and Patterning Conference, emphasizing robust order strength related to AI infrastructure as a key driver for growth. Despite the positive prospects, the heightened scrutiny regarding export controls poses a substantial risk to sales in key regions.
Forecasts suggest a potential revenue of approximately $32.5 billion and earnings of $9.2 billion by 2028, predicated on an estimated annual revenue growth of 4.3%. Some analysts are even more optimistic, projecting revenues could reach around $35.2 billion and earnings of $9.8 billion.
While the inclusion in the index may attract additional investment, it does not alleviate concerns regarding export licensing challenges and customer concentration issues that could affect the company’s performance in a volatile market.