Goldman Sachs Boosts Semiconductor Equipment Spending Forecasts Through 2028

Goldman Sachs has revised its semiconductor equipment spending forecasts upward, citing positive data from second-quarter earnings season. The investment bank now projects wafer fabrication equipment (WFE) spending of $150 billion in 2026, $218 billion in 2027, and $281 billion in 2028.

The increased estimates reflect substantial capital expenditure revisions and more constructive outlooks from semiconductor processing equipment suppliers. Goldman Sachs identifies DRAM and leading-edge foundry as near-term drivers of WFE momentum, with NAND and Logic markets expected to contribute in the medium term.

The firm maintains a bullish stance on semiconductor capital equipment stocks and highlights seven companies as top picks: Applied Materials, Lam Research, ASML, Tokyo Electron, ASMI, BESI, and Lasertec. Applied Materials reported fiscal third-quarter revenue that rose 15% sequentially and provided revenue guidance of $10.25 billion for its next quarter.