Applied Materials raises quarterly revenue forecast above estimates

Applied Materials Inc. on Wednesday forecast quarterly revenue above Wall Street estimates, citing sustained demand for semiconductor manufacturing equipment despite ongoing softness in the broader technology sector.

The company, a key supplier to chipmakers, projected third-quarter revenue in the range of $6.6 billion to $7.0 billion, exceeding the average analyst estimate of $6.56 billion compiled by Refinitiv. The midpoint of the guidance implies a year-over-year increase of approximately 15%.

Applied Materials’ outlook contrasts with recent cautious commentary from peers, including Lam Research Corp. and KLA Corp., which have flagged potential moderation in semiconductor capital expenditures due to inventory corrections and macroeconomic uncertainty. The company attributed its stronger-than-expected forecast to robust demand for advanced logic and memory chips, particularly from data center and AI-related applications.

Chief Executive Gary Dickerson said in a statement that the semiconductor industry remains on a growth trajectory, driven by long-term trends such as AI adoption and 5G expansion. He added that Applied Materials is well-positioned to capitalize on these trends, with a strong order backlog supporting its outlook.

Shares of Applied Materials were up 2.1% in after-hours trading following the announcement, extending gains from the regular session where the stock closed at $182.45, near its 52-week high.

Analysts at Jefferies maintained a Buy rating on the stock with a price target of $200, citing the company’s leading market share and exposure to high-growth segments. The stock has gained roughly 18% year-to-date, outperforming the Philadelphia Semiconductor Index, which is up 12% over the same period.

Applied Materials is scheduled to report its full third-quarter earnings on May 26.