Forget the memory chip arms race. The real trade is the 3 equipment companies every chipmaker must pay first

The focus in the semiconductor industry should shift from memory chipmakers to the essential equipment suppliers: ASML, Applied Materials, and Lam Research. These companies are benefiting from strong demand and significant backlogs, with ASML raising its FY2026 revenue guidance to €36B-€40B. Applied Materials reported Q1 FY2026 revenue of $7.01B, while Lam Research's Q3 FY2026 revenue grew 23.8% year-over-year to $5.84B. Despite high valuations, these equipment vendors offer recurring revenue and backlog visibility, making them crucial players in the chipmaking ecosystem.