Applied Materials’ Sales Hit Record High Amid AI Race

Applied Materials (AMAT) posted stronger-than-expected results for the fiscal third quarter, amid a surge in demand that the company’s CEO said was fueled by the race for artificial intelligence (AI) leadership.

The semiconductor equipment maker reported quarterly revenue reached a record high at $6.78 billion, representing 5% growth from the year-ago period and topping analysts’ estimates. Net income was $1.7 billion or $2.05 per share, gaining from the year prior and also ahead of projections.

AI Race Drives Record-High Revenue

“The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term,” Applied Materials CEO Gary Dickerson said.

The company said it anticipates revenue in the final quarter of the fiscal year of roughly $6.93 billion, and diluted earnings per share (EPS) of $2 to $2.36, consistent with analysts’ expectations.

China sales also accounted for a smaller portion of the company’s total revenue than projected, which could suggest sales to the region are normalizing faster than analysts anticipated.

Applied Materials shares wavered between slight gains and losses in extended trading Thursday following the release. The stock has gained over 30% since the start of the year through Thursday’s close.