Core Viewpoint - Applied Materials is betting on the sustained demand for more powerful AI chips as it launches new chip manufacturing equipment with "atomic-level" precision, highlighting the increasing complexity and technological challenges in semiconductor manufacturing [2][3]. Group 1: Technological Advancements - The semiconductor manufacturing industry is entering an unprecedented complex era, requiring equipment manufacturers to adapt quickly to evolving demands [2]. - Leading chip manufacturers, including TSMC, Intel, and Samsung, plan to start 2nm chip production this year, transitioning to a new transistor architecture known as "Gate-All-Around" (GAA) technology, which allows for more complex transistor structures in limited space [3]. - Applied Materials is introducing a new series of advanced chip manufacturing tools aimed at enhancing AI chip performance, covering integrated chip-to-wafer hybrid bonding systems, new material deposition systems for GAA transistors, and sub-nanometer imaging metrology tools [4]. Group 2: Market Dynamics - Despite concerns about a potential AI "bubble," leading U.S. chip equipment manufacturers have not observed a slowdown in industry investments, with 100 wafer fabs currently under construction [3]. - The company anticipates a revenue reduction of $600 million in fiscal year 2026 due to U.S. export restrictions affecting China, yet its stock price has risen over 30% this year [5]. Group 3: Collaboration and Limitations - The complexity of current technologies has changed how customers collaborate with chip equipment manufacturers, with clients engaging earlier in the process [4]. - Due to U.S. export controls, Applied Materials' new chip manufacturing tools will not be available to Chinese customers, particularly affecting processes below 14nm [4].