2 AI Semiconductor Stocks to Own in 2027 and Beyond

NVIDIA’s crowd-stunning earnings highlight the massive AI opportunity ahead.

WFE and Advanced Packaging stocks are prime beneficiaries.

Today, we’ll cover 2 AI semiconductor stocks to own in 2027 and beyond.

The reality is simple. As AI technology accelerates, chips become faster and more advanced.

Wafer Fab Equipment (WFE) companies make this all possible. They are the true picks and shovels of the AI trade.

Think of Wafer Fab Equipment technology as the machines that build semiconductor chips.

This is highly complex. Machines deposit microscopic layers of materials, pattern the circuits, etch, clean, measure and inspect.

Begin with a silicon wafer and end with billions of transistors:

And this process continues to get more sophisticated over time…single chips turn into advanced packages, creating one powerful system:

AI technology is only accelerating and becoming more sophisticated.

That means there’s a huge opportunity in owning core WFE stocks at the center of the revolution.

Today, we’ll break down 2 incredible companies to own that I believe represent a lot of value right now.

September’s selloff has created oversold opportunities…that won’t last.

Huge historical institutional support makes these must-own in my opinion.

Here’s why.

2 AI Semiconductor Stocks to Own in 2027 and Beyond

Chips are built layer by layer.

And a handful of companies control the WFE and Advanced Packaging process.

Just make sure you own the best.

Our first core AI semiconductor stock to own in 2027 is Applied Materials (AMAT). The $367 billion market cap player builds chips layer by layer.

They have exposure across logic, DRAM, and HBM:

It’s a great story…with an even better valuation.

Even with business exploding, the stock has suffered recently, down 37% from highs.

At a share price of $440, the stock now trades at forward PE of 25:

Their recent earnings were spectacular.

Q4 guidance sees EPS at $4.02 at the midpoint…well above the $3.71 analysts’ estimates.

The company mentioned leading-edge foundry-logic, DRAM, and Advanced Packaging as the fastest-growing segments.

As an investor, all you need to do to size up the opportunity is two-fold.

First, pay attention to the earnings trend.

As you can see, EPS estimates continue to soar with analysts pegging FY 2027 EPS at $18.68.

FY 2028 Eps was recently revised higher to $24.49:

With earnings trending up and to the right, all that’s left to do is confirm your thesis with institutional money flows.

And AMAT has been loved by institutions not only in 2026…but for years!

Below showcases (left) relentless inflows all year. More importantly (right), AMAT is has been one of the highest rated stocks in our data for years.

The blue bars signal each time AMAT was a top-ranked buy signal on our Outlier 20 report.

Folks, market-beating stocks are powered higher by institutional support…period:

Few stocks have continual institutional footprints. We find them and bring them to you…early.

Let’s do another.

The 2^nd core AI semiconductor stock to own in 2027 is Lam Research (LRCX). The $380 billion market cap WFE player focuses on etch and deposition. They also have huge memory exposure.

If Applied Materials builds the chip, Lam Research shapes it:

The company has huge AI tailwinds.

However, the stock has fallen hard recently. Shares trade at $290 and the forward PE is below 30:

This selloff is a great buy the dip opportunity.

Here’s why: Lam’s Q4 earnings were a beat with a huge raise.

For Q1, LRCX expects EPS to reach $2.15 +/- $.15, well above analysts’ expectations of $1.84.

When you plot expected earnings over the next few years, it’s a stunning revelation of how oversold this name is.

For FY 2028, EPS has been revised higher to $11.56.

FY 2029 now is forecasted to balloon to $13.51.

Few companies have fundamental trajectories like this:

At MoneyFlows, we verify our bullish thesis with cold hard data.

The single reason to consider LRCX is the relentless trend of inflows.

Below on the left are dozens of institutional inflows powering the stock higher. To the right showcases how Lam is an Outlier.

Few stocks will ever have charts like this over the long-run:

Keep investing simple.

Follow the flows into the best stocks.

And it couldn’t be easier with our latest enhancement: Frontiers.

Both AMAT and LRCX are part of our AI Frontier Outlier basket which includes 22 names highly levered to the AI buildout.

Serious investors and money managers can follow tomorrow’s biggest themes, loved by institutional investors.

Our annual PRO subscription now includes access to all 11 Frontiers, and their outlier baskets.

Make the most of the September selloff!

Lastly, don’t miss my awesome conversation with Jason Bodner breaking down our top 3 WFE and Advanced Packaging stocks. It’s a great video!

***Lastly, join co-founder Jason Bodner LIVE, October 5-7, 2026, at the MoneyShow TradersEXPO in Orlando. 

You don’t want to miss this! Click the image below to reserve your spot.