TechFlow News, according to TechFlow Research, Bernstein released a research report on the semiconductor equipment industry on July 20, 2026, estimating that AI data center expansion will significantly drive equipment demand.
The institution estimates that for every additional 1GW of annualized computing power, it corresponds to $8 billion in equipment investment. If an additional 50GW of computing power is added annually, cumulative global wafer equipment expenditure from 2027 to 2029 will exceed $700 billion, with an annualized scale approaching $300 billion.
Current market estimates for annual industry demand are only $120 billion to $150 billion. If computing power construction maintains a high-speed pace, equipment leaders' earnings will significantly exceed market estimates. Calculated based on the 50GW scenario, the P/E ratios of Applied Materials, Lam Research, and KLA in 2028 will fall back to 15 to 18 times.
In terms of targets, the institution is most optimistic about Applied Materials, giving six companies including Lam Research, KLA, and ASML an outperform rating, while Screen maintains a Market Perform rating.
