TLDRApplied Materials (AMAT) stock plunges 8.19% despite strong demand for AI chips.Applied Materials targets over two percentage points of market share gains by 2030.Applied Materials expects its eBeam equipment revenue to reach $2 billion in 2026.Applied Materials projects semiconductor service revenue above $12 billion by 2030.Applied Materials plans to more than double its research and production capacity by 2030.Applied Materials (AMAT) stock plunged 8.19% to $456.77 during Tuesday’s intraday trading, losing $40.76 despite strong demand for AI chips. The decline followed the company’s presentation of ambitious semiconductor equipment growth targets through 2030. Meanwhile, Applied Materials outlined expansion plans across advanced manufacturing, research facilities, and semiconductor services.Applied Materials, Inc., AMATApplied Materials Targets Stronger Growth in AI Chip EquipmentApplied Materials presented its long-term growth strategy during the 2026 SEMICON West Investor Breakfast on Tuesday. The company expects expanding AI infrastructure to support sustained demand for wafer fabrication equipment. Its strategy focuses on advanced chip production, memory technology, and semiconductor packaging.CEO Gary Dickerson identified AI infrastructure development as a major driver of future semiconductor equipment spending. He emphasized the company’s leadership in technologies that improve computing performance, energy efficiency, and production costs. Applied Materials expects broader AI adoption to increase demand for advanced silicon manufacturing.The company projects three semiconductor segments will generate approximately 75% of wafer fabrication equipment growth between 2025 and 2030. These segments include leading-edge foundry logic, DRAM memory, and advanced packaging technologies. Applied Materials aims to increase its equipment market share by more than two percentage points during this period.Applied Materials Expands Semiconductor Services and eBeam TechnologyApplied Materials expects its electron-beam inspection equipment business to generate $2 billion in revenue during calendar 2026. The technology helps semiconductor manufacturers identify production defects and improve yields during advanced chip manufacturing. Additionally, its imaging systems support faster production processes and more efficient factory operations.The company also expects its semiconductor services revenue to increase more than 20% during 2026. Management projects annual services revenue will exceed $12 billion by 2030, supported by a mid-teens compound growth rate. These services help semiconductor manufacturers improve equipment performance, factory productivity, and manufacturing efficiency.Chief Financial Officer Brice Hill outlined plans to strengthen profitability while expanding research and development spending. According to Hill, previous technology investments have established the company’s position across important semiconductor manufacturing processes. The company now plans to increase operating leverage as semiconductor equipment demand expands.Applied Materials Plans Major Manufacturing Expansion Through 2030Applied Materials plans to more than double its research laboratory and manufacturing capacity by 2030. The expansion supports expected growth in semiconductor production and demand for advanced manufacturing equipment. The company continues investing in facilities that support collaboration with semiconductor manufacturers.On Monday, Applied Materials unveiled its Equipment and Process Innovation and Commercialization Center in Silicon Valley. The new facility supports joint research into semiconductor process technology and equipment development. The company has already announced 15 partnerships involving chipmakers, technology companies, equipment manufacturers, and universities.Applied Materials has also expanded its manufacturing infrastructure across several international locations. These facilities include operations in Austin, Texas, Singapore, and Treviso, Italy. The investments support the company’s long-term production strategy as semiconductor manufacturers expand capacity for increasingly complex computing applications. The post Applied Materials (AMAT) Stock: Sinks 8% Despite Strong AI Chip Demand appeared first on Blockonomi.