Applied Materials, a semiconductor tools company, predicted third-quarter results that were higher than expected by Wall Street. This was due to strong demand for its products. However, investors were not satisfied with the forecast, causing the company’s shares to drop by 1.2% in after-hours trading.
Applied Materials, a company that makes machinery for producing semiconductors, is seeing increased demand for its products. This is because its customers are investing heavily in making artificial intelligence chips.
Investors are lowering the share price because they were expecting better results and outlook. However, this does not change the positive trend in the semiconductor chip industry. The increased need for high-performance computing and data centers has boosted demand for memory semiconductors like DRAM and flash memory, benefiting chip tool suppliers.
Applied Materials, a chipmaking tools supplier, revealed that 43% of its revenue in the second quarter came from China. The company’s Chief Financial Officer noted that while industrial and auto markets are weak, there is strength in image sensors, power chips, microcontrollers, and other markets.
Applied Materials, the biggest semiconductor equipment maker in the US, announced its second-quarter revenue of $6.65 billion, surpassing the estimated $6.54 billion. Adjusted earnings per share came in at $2.09, higher than the estimated $1.99.