Applied Materials And 2 Growth Stocks To Watch

AI investment is pouring into the U.S. economy, with Anthropic suggesting it could lift GDP sharply by 2030. That kind of technology driven productivity story puts fast growing, financially solid companies in a brighter spotlight. Missing the right ones could mean watching the next leg of wealth creation from the sidelines. This article highlights three stocks from a high growth, strong balance sheet screener that may be worth a closer look.

The three stocks highlighted here offer a compelling starting point if you want exposure to financially solid businesses with healthy high growth potential in earnings. However, if you want the absolute best, these 88 best high growth potential stocks are the cream of the crop.

Applied Materials (AMAT)

Overview: Applied Materials supplies the complex machinery and services chipmakers use to build and scale advanced semiconductors at high volume.

Operations: The business generates about US$22.4b from Semiconductor Systems and US$7.2b from Applied Global Services, selling mainly into Taiwan, China, and Korea.

Market Cap: US$341.3b

Applied Materials matters for this healthy high growth potential theme because its chipmaking tools are directly tied to how quickly AI era capacity actually comes online and turns into earnings.

"Structural growth in AI and high performance computing is reshaping semiconductor demand. Applied Materials is guiding Semiconductor Systems revenue in calendar 2026 to a level higher than its already raised greater than 30% framework, with an expectation to outgrow wafer fab equipment, which could support higher revenue and earnings over time."

The real swing factor is how one quiet shift in Applied Materials’ product mix eventually feeds through into cash generation and margins.

That mix shift is the real story, and the full narrative for Applied Materials lays out how it could accelerate earnings power while reshaping risk for long term holders.

Sandisk (SNDK)

Overview: Sandisk develops NAND flash based solid state drives and embedded storage, with datacenter and enterprise SSDs anchoring its high growth potential connection.

Operations: Sandisk generates about US$20.2b from developing, manufacturing, marketing, and selling NAND based data storage devices and solutions worldwide.

Market Cap: US$204.2b

Sandisk matters for this healthy high growth potential theme because its SSDs and embedded NAND sit where AI, cloud, and storage demand directly turn into earnings power.

"Rapid AI and cloud workload expansion is driving data center NAND exabyte growth at a pace well above overall supply, positioning Sandisk's enterprise SSD portfolio and deepening hyperscaler engagements to support sustained revenue acceleration and structurally higher pricing power."

The real test for Sandisk’s earnings story comes from how one evolving pressure on storage pricing and margins ultimately resolves.

That pricing pressure is exactly what the full narrative for Sandisk unpacks, showing how Sandisk's AI storage demand could outweigh margin headwinds and where the risk reward line really sits.

Space Exploration Technologies (SPCX)

Overview: Space Exploration Technologies runs rockets, satellite broadband through Starlink, and an AI platform that ties together space, connectivity, and computing.

Operations: The business generates about US$13.9b from Connectivity, US$5.1b from AI, and US$4.1b from Space related services.

Market Cap: US$2,017.2b

Space Exploration Technologies matters for the healthy high growth potential screen because Starlink Connectivity links recurring subscription revenue directly to earnings expansion and cash generation as it scales.

"Starlink satellite internet is currently the main driver of revenue and is the only division reporting an operating profit."

What happens to that earnings story depends heavily on how one capital intensive push in AI and network buildout ultimately lands on free cash flow.

That capital push is exactly what the full narrative for Space Exploration Technologies unpacks. It shows where Starlink cash generation could accelerate, where AI spend bites, and how the risk reward really shifts.

Seeking Alternatives Before The Crowd

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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