The rapid buildout of AI infrastructure has been driving a strong demand cycle for semiconductor manufacturing equipment. Applied Materials, Inc. (NASDAQ:AMAT) benefits from such a trend, thanks to chipmakers increasing spending on advanced DRAM, HBM, leading-edge logic, as well as advanced packaging.
This trend is evidenced by the company's latest results, which highlight real financial growth. Applied Materials, Inc. (NASDAQ:AMAT) reported record revenue of $9.12 billion, with non-GAAP EPS of $3.50 and $3.17 on a GAAP basis. Importantly, gross margin was above 50%, demonstrating its 13th consecutive quarter of YoY gross-margin expansion.
The company is not just benefiting from elevated semiconductor spending. It is gaining share too. Applied Materials, Inc. (NASDAQ:AMAT) upgraded its Semiconductor Systems revenue expectations for CY 2026, anticipating growth faster than the broader semiconductor equipment market. Notably, the momentum seems to be robust in DRAM, leading-edge foundry/logic, and advanced packaging. Collectively, they continue to become critical as AI chips are more complex.
Furthermore, the numbers support operating leverage. For Q4, the company expects revenue of ~$10.25 billion, demonstrating YoY growth of 51%. The non-GAAP EPS is anticipated to reach $4.02, implying growth of 85% YoY. Semiconductor Systems revenue is projected to increase by 62% to ~$7.9 billion.
UBS ******* yst Timothy Arcuri kept a "Buy" rating on Applied Materials, Inc. (NASDAQ:AMAT)'s stock and a price objective of $675, highlighting the company's aggressive capacity expansion and continued share gains. The long-term thesis needs to be understood, with Applied Materials, Inc. (NASDAQ:AMAT) aiming to double its systems output capacity by CY 2028, and ******* yst's model expecting systems revenue approaching ~$14 billion per quarter and earnings reaching $30 per share.
#amat #semiconductor #systems
This trend is evidenced by the company's latest results, which highlight real financial growth. Applied Materials, Inc. (NASDAQ:AMAT) reported record revenue of $9.12 billion, with non-GAAP EPS of $3.50 and $3.17 on a GAAP basis. Importantly, gross margin was above 50%, demonstrating its 13th consecutive quarter of YoY gross-margin expansion.
The company is not just benefiting from elevated semiconductor spending. It is gaining share too. Applied Materials, Inc. (NASDAQ:AMAT) upgraded its Semiconductor Systems revenue expectations for CY 2026, anticipating growth faster than the broader semiconductor equipment market. Notably, the momentum seems to be robust in DRAM, leading-edge foundry/logic, and advanced packaging. Collectively, they continue to become critical as AI chips are more complex.
Furthermore, the numbers support operating leverage. For Q4, the company expects revenue of ~$10.25 billion, demonstrating YoY growth of 51%. The non-GAAP EPS is anticipated to reach $4.02, implying growth of 85% YoY. Semiconductor Systems revenue is projected to increase by 62% to ~$7.9 billion.
UBS ******* yst Timothy Arcuri kept a "Buy" rating on Applied Materials, Inc. (NASDAQ:AMAT)'s stock and a price objective of $675, highlighting the company's aggressive capacity expansion and continued share gains. The long-term thesis needs to be understood, with Applied Materials, Inc. (NASDAQ:AMAT) aiming to double its systems output capacity by CY 2028, and ******* yst's model expecting systems revenue approaching ~$14 billion per quarter and earnings reaching $30 per share.
#amat #semiconductor #systems
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