Applied Materials (AMAT) Stock Rises 7.7% on TSM Price Hike Plan

Shares of Applied Materials (NASDAQ:AMAT) jumped 7.7% in the morning session after peer Taiwan Semiconductor Manufacturing (NYSE:TSM) announced plans to raise chipmaking prices by up to 10% starting in 2027, while wafer supplier IQE plc raised its guidance. These developments reaffirmed robust demand for AI and data-center chips alongside the ongoing need for incremental chip capacity.

Possible Reasons

The direct catalyst for AMAT's rise is TSM's price hike announcement, which signals sustained strong demand for advanced chips. Additionally, IQE's guidance raise further supports the positive outlook for the semiconductor equipment sector.

Context

This move comes amid a broader upswing in the semiconductor industry, driven by AI and cloud computing demand. Industry forecasts project that global chipmaking equipment sales could reach record levels in the coming years.

Similar Moves in the Sector

Other semiconductor equipment makers like Lam Research and KLA Corporation also saw gains, as the entire sector benefited from the same positive sentiment.