AMAT's New R&D Hub in 2026: Will EPIC Push It Ahead in Chips?

Applied Materials AMAT is betting big on innovation with its new EPIC Center, expected to begin operations in the first half of 2026. EPIC, short for Equipment and Process Innovation and Commercialization, will be the largest and most advanced research & development (R&D) facility of its kind. The research facility will also be the centerpiece of Applied Materials’ high-velocity co-innovation model. The EPIC Center is designed to shorten learning cycles and accelerate customer time-to-market. What sets EPIC Center apart is deep customer integration. Applied Materials plans to co-locate teams from top chipmaking companies directly inside the facility to jointly develop solutions for technologies like gate-all-around transistors, backside power delivery, and advanced packaging. The EPIC Center lab will mark an extension to Applied Materials’ EPIC Platform, which is a collaborative ecosystem designed to accelerate innovation and commercialization in the semiconductor industry. EPIC Center is not a standalone effort toward enhancing R&D capabilities.Earlier in June, the company extended its collaboration with CEA-Leti to accelerate innovation in specialty semiconductors.  The joint lab with CEA-Leti in France will focus on chips serving the Internet of Things, Communications, Automotive, Power and Sensors market and energy-efficient artificial intelligence (AI) infrastructure. The extended longstanding collaboration is expected to further complement Applied Materials’ EPIC Platform’s leading-edge roadmap.With the opening of EPIC Center, Applied Materials will be able to work with customers on several technology nodes ahead of production. The company believes that offering integrated technology platforms helps boost profitability and strengthens its position as a strategic partner with its customers.How Competitors Fare Against AMATASML Holding ASML continues to work directly with customers to improve its Extreme Ultraviolet (EUV) lithography machines. In the first quarter of 2025, ASML Holding stated that it is placing its newest systems into customers’ R&D labs to test and improve the tools together. ASML Holding shared that some of its customers have already seen up to 60% faster cycle times and fewer process steps, dropping from about 40 to under 10, using its High NA EUV system. Lam Research LRCX is also helping customers speed up chip development. In the third quarter of fiscal 2025, Lam Research signed new customer deals for its virtual fabrication platform, SEMulator3D, which helps users to test new technologies before committing to physical production. Lam Research is also working closely with customers on gate-all-around nodes and backside power distribution, both of which are key parts of next-generation chips.AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have gained 13.2% year to date compared with the Electronics - Semiconductors industry’s growth of 13.8%.AMAT YTD Price Return PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 4.92X, lower than the industry’s average of 8.67X.AMAT Forward 12-Month P/S RatioImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Applied Materials’ fiscal 2025 and 2026 earnings implies year-over-year growth of 9.5% and 5.5%, respectively. The estimates for fiscal 2025 and 2026 have been revised upward in the past 30 days.Image Source: Zacks Investment Research Applied Materials currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ASML Holding N.V. (ASML): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks