Applied Materials posts record revenue, raises chip equipment outlook on AI demand

Applied Materials announced unprecedented quarterly revenue and has increased its projections for chip equipment sales, spurred by a surge in demand for AI semiconductors. The firm anticipates that its semiconductor equipment sector will expand by over 30% in the calendar year 2026. This positive forecast is indicative of the ongoing investment boom in AI infrastructure, which is driving the need for sophisticated chip manufacturing tools. As a vital supplier to leading chip manufacturers such as TSMC and Intel, Applied Materials' guidance is regarded as a significant indicator for the entire semiconductor sector. The record revenue stemmed from robust sales of equipment for producing logic and memory chips, especially those utilized in AI applications. Following the announcement, the company's CEO highlighted "unprecedented" demand for AI computing power as a key factor for growth, leading to a rise in Applied Materials' shares during after-hours trading.