Chip Gear Giant Applied Materials is Exceeding Its Targets for DRAM Device Sales - Latest Global News

Chip Gear Giant Applied Materials is Exceeding Its Targets for DRAM Device Sales

Semiconductor equipment provider Applied materials (AMAT) late Thursday topped estimates for its fiscal second quarter and beat expectations for the current period. But AMAT shares fell in extended trading.




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The Santa Clara, Calif.-based company reported adjusted earnings of $2.09 per share on revenue of $6.65 billion in the quarter ended April 28. Analysts polled by FactSet had expected earnings of $1.99 per share on revenue of $6.54 billion. Year-over-year, Applied Materials’ earnings rose 5%, while sales rose only slightly.

For the current quarter, Applied Materials expects adjusted earnings of $2.01 per share on revenue of $6.65 billion. This is based on the focus of his guidelines. Wall Street forecast fiscal third-quarter earnings of $1.98 per share on revenue of $6.59 billion. In the same period last year, Applied Materials earned an adjusted $1.90 per share on revenue of $6.43 billion.

“Applied Materials has the most promising portfolio of chip materials technologies that support tectonic shifts in technology, including AI (artificial intelligence), IoT (Internet of Things), electric vehicles and clean energy,” Chief Executive Gary Dickerson said in a press release. The company is “in an excellent position to grow with these long-term, secular trends.”

DRAM Equipment Sales Boost Q2 Beat

In the fiscal second quarter, Applied Materials reported the strongest sales growth in DRAM memory chip manufacturing technologies. DRAM stands for Dynamic Random Access Memory. DRAM device sales accounted for 32% of the company’s semiconductor systems sales during the period, up from 11% in the year-ago period.

China remains the company’s largest geographic market, accounting for 43% of sales in the second quarter.

In after-hours trading on the stock market today, AMAT shares fell 1% to 211.97. During Thursday’s regular session, AMAT shares fell 1.5% to close at 214.17.

AMAT stock broke out of a flat base at a 214.91 buy point on Wednesday, according to IBD MarketSurge charts.

Additionally, Applied Materials is on the IBD Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks, click here.

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