Applied Materials Shares Jump 6% on CEO's Long-Term Chip Outlook
Applied Materials (AMAT) shares rose 6% in pre-market trading after CEO Gary Dickerson said semiconductor manufacturers are sharing long-term capacity plans, providing equipment suppliers with confidence in demand extending to 2030.
Key Numbers
Shares of Applied Materials (NASDAQ:AMAT) climbed 6% in pre-market trading on Thursday after Chief Executive Gary Dickerson stated that semiconductor manufacturers are providing equipment demand forecasts that extend several years into the future, with some visibility reaching as far as 2030.
Potential Reasons
In an interview with Nikkei Asia, Dickerson said customers are increasingly sharing long-term capacity plans, giving equipment suppliers greater confidence to invest. He noted that demand for semiconductor equipment remains strong over multiple years, with clear visibility through 2030.
Context
The statement comes amid rising demand for chips used in artificial intelligence and high-performance computing. AMAT shares have gained about 15% over the past month, outperforming the Philadelphia Semiconductor Index, which rose 10%.
Similar Moves in the Sector
Other semiconductor equipment stocks such as Lam Research (LRCX) and KLA Corporation (KLAC) also saw slight gains in the same session, indicating broad sector optimism.
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