Expecting strong second-half growth in DRAM, leading-edge foundry logic and advanced packaging, the company targeted a quarterly revenue of about $10.25 billion. Customer visibility has now extended to as far as 2030.
Predicting high demand on advanced AI chips, US based Applied Materials forecasted fourth quarter revenue above Wall Street expectations, with robust spending on semiconductor manufacturing equipment.
Even as its shares dropped more than 5 percent in extended trading, due to high investor expectations, overshadowing results, the stock has more than doubled this year.
According to CFRA analyst Brooks Idlet, the results and the forecasts were not enough to impress the Street, but the print was solid even as momentum continues to improve through 2027.
The company expects a revenue around $10.25 billion, plus-minus $500 million, compared to analysts’ estimates of $9.54 million, according to data compiled by LSEG.
Chief financial officer Brice Hill said that the company expects strong revenue growth in the second half of the calendar year, particularly in DRAM as well as leading-edge foundry logic and advanced packaging.
The revenue of the semiconductor segment might grow at 30 percent, compared to previous outlook of 20 percent. On the other hand, revenue from the overall packaging segment might grow 70 percent, compared to earlier estimates of 50 percent in calendar year 2026
With customer visibility, extending as far as 2030, Applied materials also plans to expand its manufacturing capacity. According to a report by Wall Street Journal, the company hopes to build a capacity to double its quarterly semiconductor output, from the current level by 2028.
