Applied Materials has announced record-breaking results for its fiscal third quarter, driven by heightened demand related to the artificial intelligence (AI) sector. The semiconductor equipment manufacturer reported quarterly revenue of $6.78 billion, marking a 5% increase year-over-year and surpassing analysts’ expectations. Net income reached $1.7 billion, or $2.05 per share, exceeding projections.
CEO Gary Dickerson highlighted that the surge in revenue was largely attributed to the race for AI leadership, which is driving demand for Applied Materials’ comprehensive portfolio of products and services. “The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term,” Dickerson stated.
Looking ahead, Applied Materials forecasts revenue of approximately $6.93 billion for the final quarter of the fiscal year and diluted earnings per share (EPS) between $2.00 and $2.36, aligning with analysts’ predictions.
The company also noted that sales from China comprised a smaller portion of total revenue than anticipated, suggesting that sales to the region may be stabilizing faster than expected.
Following the earnings release, Applied Materials’ shares experienced minor fluctuations in after-hours trading. The stock has seen an impressive gain of over 30% since the beginning of the year, as of Thursday’s close.
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