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The Zacks Analyst Blog Highlights NVIDIA, AMD, Applied Materials, Lam Research and Micron Technology
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For Immediate Release
Chicago, IL – April 6, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) , Arm Holdings plc (ARM - Free Report) , Applied Materials, Inc. (AMAT - Free Report) , Lam Research Corp. (LRCX - Free Report) and Micron Technology, Inc. (MU - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
2 AI PIck-and-Shovel Stocks Poised to Be the Next NVIDIA
With the rise of artificial intelligence (AI), NVIDIA Corp. has experienced significant growth. Demand for its graphics processing units (GPUs) for powering new AI applications has increased among leading tech companies, while its cutting-edge Blackwell chips are also seeing exceptionally strong demand.
However, in the first quarter of 2026, NVIDIA's shares declined by over 5% amid geopolitical shocks that dented investors' sentiment. Apprehensions emerged that a possible slowdown in AI infrastructure spending could derail the company's growth trajectory, while stiff competition from rivals such as Advanced Micro Devices, Inc. and Arm Holdings plc raised concerns about potential pressure on its market share.
But "pick-and-shovel" AI players Applied Materials, Inc. and Lam Research Corp. capitalized on the AI boom, rising 33% and 24.8%, respectively, in the first quarter – defying the broader downward trend in the tech sector. Both companies are now well-poised to replicate NVIDIA's long-term success, banking on a scalable business model. Let's see in detail –
Applied Materials Leads in AI-Driven Semiconductor Growth
Increasing AI investments are boosting sales of Applied Materials' state-of-the-art semiconductor equipment. Gary Dickerson, President and CEO of Applied Materials, said that the company leads in high-performance, energy-efficient chip equipment, and is targeting 20%+ growth this year. The company has already bolstered its supply chain and improved manufacturing capacity to meet growing demand.
Applied Materials expects revenues for the second quarter of fiscal 2026 to come at $7.65 billion, with a range of plus or minus $500 million, building on first-quarter revenues of $7.01 billion for the period ending on Jan. 25, 2026. This indicates sustained growth momentum, according to ir.appliedmaterials.com.
Applied Materials stayed highly profitable, with a non-GAAP gross margin of 49.1% in the fiscal first quarter, and generated $1.69 billion in cash from operations, which can fund further growth initiatives. The company earned innovation and technology leadership awards, highlighting customer trust, and continues to benefit from long-term secular trends in the semiconductor industry.
As a result, the Applied Materials' expected earnings growth rate for the current and next year are 17.8% and 26.4%, respectively. The Zacks Consensus Estimate of $11.1 for AMAT's earnings per share (EPS) is up 12.1% year over year.
Lam Research Set to Gain From Memory Chip Growth
Lam Research is well-positioned for sustained growth, supported by its expanding product offerings. The company has guided for solid margins, an increase in earnings, and healthy revenues of around $5.7 billion for the March 2026 quarter, according to newsroom.lamresearch.com.
Lam Research ended 2025 on an encouraging note, with revenues for the December quarter coming in at $5.34 billion, with a non-GAAP gross margin of 49.7%. Strong operational execution helped fuel net income to $1.59 billion, highlighting solid profitability.
Meanwhile, rising investments in equipment to expand memory chip production by the likes of Micron Technology, Inc. are likely to benefit leading semiconductor equipment provider Lam Research. Consequently, the company's expected earnings growth rate for the current and next year are 26.6% and 26.9%, respectively. The Zacks Consensus Estimate of $5.24 for LRCX's EPS is up 32.3% year over year (read more: Up 15%+ in Q1: 2 AI Stocks Still Flashing "Strong Buy" for Q2).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights NVIDIA, AMD, Applied Materials, Lam Research and Micron Technology
For Immediate Release
Chicago, IL – April 6, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) , Arm Holdings plc (ARM - Free Report) , Applied Materials, Inc. (AMAT - Free Report) , Lam Research Corp. (LRCX - Free Report) and Micron Technology, Inc. (MU - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
2 AI PIck-and-Shovel Stocks Poised to Be the Next NVIDIA
With the rise of artificial intelligence (AI), NVIDIA Corp. has experienced significant growth. Demand for its graphics processing units (GPUs) for powering new AI applications has increased among leading tech companies, while its cutting-edge Blackwell chips are also seeing exceptionally strong demand.
However, in the first quarter of 2026, NVIDIA's shares declined by over 5% amid geopolitical shocks that dented investors' sentiment. Apprehensions emerged that a possible slowdown in AI infrastructure spending could derail the company's growth trajectory, while stiff competition from rivals such as Advanced Micro Devices, Inc. and Arm Holdings plc raised concerns about potential pressure on its market share.
But "pick-and-shovel" AI players Applied Materials, Inc. and Lam Research Corp. capitalized on the AI boom, rising 33% and 24.8%, respectively, in the first quarter – defying the broader downward trend in the tech sector. Both companies are now well-poised to replicate NVIDIA's long-term success, banking on a scalable business model. Let's see in detail –
Applied Materials Leads in AI-Driven Semiconductor Growth
Increasing AI investments are boosting sales of Applied Materials' state-of-the-art semiconductor equipment. Gary Dickerson, President and CEO of Applied Materials, said that the company leads in high-performance, energy-efficient chip equipment, and is targeting 20%+ growth this year. The company has already bolstered its supply chain and improved manufacturing capacity to meet growing demand.
Applied Materials expects revenues for the second quarter of fiscal 2026 to come at $7.65 billion, with a range of plus or minus $500 million, building on first-quarter revenues of $7.01 billion for the period ending on Jan. 25, 2026. This indicates sustained growth momentum, according to ir.appliedmaterials.com.
Applied Materials stayed highly profitable, with a non-GAAP gross margin of 49.1% in the fiscal first quarter, and generated $1.69 billion in cash from operations, which can fund further growth initiatives. The company earned innovation and technology leadership awards, highlighting customer trust, and continues to benefit from long-term secular trends in the semiconductor industry.
As a result, the Applied Materials' expected earnings growth rate for the current and next year are 17.8% and 26.4%, respectively. The Zacks Consensus Estimate of $11.1 for AMAT's earnings per share (EPS) is up 12.1% year over year.
Lam Research Set to Gain From Memory Chip Growth
Lam Research is well-positioned for sustained growth, supported by its expanding product offerings. The company has guided for solid margins, an increase in earnings, and healthy revenues of around $5.7 billion for the March 2026 quarter, according to newsroom.lamresearch.com.
Lam Research ended 2025 on an encouraging note, with revenues for the December quarter coming in at $5.34 billion, with a non-GAAP gross margin of 49.7%. Strong operational execution helped fuel net income to $1.59 billion, highlighting solid profitability.
Meanwhile, rising investments in equipment to expand memory chip production by the likes of Micron Technology, Inc. are likely to benefit leading semiconductor equipment provider Lam Research. Consequently, the company's expected earnings growth rate for the current and next year are 26.6% and 26.9%, respectively. The Zacks Consensus Estimate of $5.24 for LRCX's EPS is up 32.3% year over year (read more: Up 15%+ in Q1: 2 AI Stocks Still Flashing "Strong Buy" for Q2).
While Applied Materials has a Zacks Rank #2 (Buy), Lam Research has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.