Applied Materials is forecasting stronger sales in its semiconductor equipment business this year, driven by surging demand for AI chips.
The company posted adjusted earnings of $2.86 per share for the second quarter, surpassing Wall Street's estimate of $2.68, and revenue of $7.9 billion, up 11% year-over-year. Net income rose to $2.806 billion from $2.137 billion last year.
CEO Gary Dickerson expects the semiconductor equipment business to grow over 30% this year, citing the global build-out of AI infrastructure and the company's leadership in logic, DRAM, and advanced packaging.
The company guided third-quarter earnings of $3.36 per share and sales of $8.95 billion, both above analyst expectations. Dickerson noted that agentic AI is boosting demand for CPUs, DRAM, and NAND chips.
CFO Brice Hill said Applied is tracking over 100 factory projects worldwide, with 10 added last quarter, and expects fiscal 2027 to be another record year.
Applied's stock has risen 71% year-to-date and 152% over the past year.