Applied Materials forecasts quarterly revenue above estimates on strong AI chip demand

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Applied Materials forecasts revenue above estimates as strong AI chip demand boosts semiconductor equipment spending. Read more at straitstimes.com.

Applied Materials is benefiting from increased spending by chipmakers racing to meet the extraordinary AI-led demand for chips and memory.

Applied Materials forecast fiscal first quarter revenue above Wall Street expectations on Nov 12, betting that strong demand for advanced AI chips will continue to fuel spending on its semiconductor manufacturing equipment.

The company, which supplies equipment for key wafer fabrication processes, is benefiting from increased spending by chipmakers racing to meet the extraordinary artificial intelligence-led demand for chips and memory.

Shares of the company were marginally higher in extended trading. The stock has risen about 48% in 2026.

“The actual metrics of the market show that demand is still very strong,” said Bob O’Donnell, chief analyst at TECHnalysis Research.

Applied’s results show chipmakers and foundries are “buying as much equipment as they possibly can”, he added.

The Santa Clara, California-based company’s Semiconductor Systems revenue jumped to US$8 billion (S$10.2 billion) in the fourth quarter, up about 64% from a year earlier.

The company is one of Apple’s partners for its American Manufacturing Program, which includes work at Applied’s Austin, Texas, facility to boost US production of chipmaking equipment.

“We expect 2027 to be another record year for the market and Applied,” chief executive Gary Dickerson said on a post-earnings call.

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