Applied Materials Forecasts Strong Q3 Revenue Amid AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 15 2024
0mins
Source: Yahoo Finance
Applied Materials Inc's shares surged by 5.01% as it crossed above the 5-day SMA, reflecting positive investor sentiment.
The company forecasts Q3 revenue of approximately $8.95 billion, exceeding Wall Street's expectations by nearly 10%, driven by strong demand for data centers and AI infrastructure. Additionally, its Q2 performance surpassed estimates, with revenue of $7.91 billion, showcasing robust growth in the semiconductor equipment sector. This optimism is further fueled by the ongoing AI boom, which enhances the outlook for equipment suppliers.
The strong revenue forecast and positive Q2 results indicate that Applied Materials is well-positioned to capitalize on the growing demand for advanced semiconductor technologies, particularly in the AI sector.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 449.680
Low
190.00
Averages
288.05
High
425.00
Current: 449.680
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates through two segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including services, spares and factory automation software for semiconductor and other products. Its products include personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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