Foundation of the Pyramid: Chip Equipment Makers Skim the Cream off AI Rush

The financial AI supercycle has reached the deepest layers of the supply chain. On May 15, 2026, reports were released from two crucial players in the semiconductor market: American Applied Materials and Chinese SMIC.

Applied Materials (a key manufacturer of microchip printing equipment) raised its revenue forecast, explicitly pointing to continuous corporate capital expenditures on AI data centers. Simultaneously, SMIC (China's main contract chip manufacturer) reported profit growth and an improved outlook due to a recovery in local orders for AI chips. These two reports, despite the geopolitical barriers and sanctions separating them, broadcast a single signal: in a gold rush, it’s not only those selling shovels (NVIDIA) who get rich, but also those making the machines to stamp out those shovels. The foundational hardware layer is doing exceptionally well on both sides of the ocean.

Source: Applied Materials / SMIC / Reuters