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JP Morgan loves the prospects for this obscure part of the tech sector

A technician checks on a stack of wafers at the Applied Materials Inc. facility in Santa Clara, California.
David Paul Morris | Bloomberg | Getty Images
A technician checks on a stack of wafers at the Applied Materials Inc. facility in Santa Clara, California.

Investors should expect strength in semiconductor equipment manufacturers through 2019, according to J.P. Morgan, as demand for chips goads companies like Applied Materials and Lam Research higher.

Analyst Harlan Sur added that he anticipates wafer fab equipment (WFE) – essential to the production of electrical circuits like LEDs and radio frequency chips – spending to hold near $50 billion, well above the average of $32 billion seen between 2010 and 2016.