Applied Materials, which makes the equipment used to manufacture chips, is described as a bottleneck in AI chip supply, and the article says $1,000 invested ten years ago would now be worth $18,924.60, a 1,792.46% total return versus $3,651.90 for the S&P 500. The path was bumpy: export controls cut China's share of revenue to 28% from 35%, the company paid a $253M settlement with the Bureau of Industry and Security in fiscal Q1 2026, and the stock fell 11.95% in the past week. Fiscal Q3 2026 revenue hit a record $9.1 billion, up 25%, with DRAM revenue up 52%, and management guided fiscal Q4 to $10.25 billion, up 51%. The article notes a forward P/E of 23 and a trailing P/E of 43, says China still accounts for 26% of Semiconductor Systems plus services revenue, and argues that patient long-term holders were rewarded.
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