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, Advanced Micro Devices, Inc. AMD, Arm Holdings plc ARM, Applied Materials, Inc. AMAT, Lam Research Corp. LRCX and Micron Technology, Inc. MU.
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.
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Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA’s enormous potential back in 2016. Now, he has keyed in on what could be “the next big thing” in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
ARM Holdings PLC Sponsored ADR (ARM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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