"The need for higher performance and more energy-efficient chips is driving high growth rates for leading-edge logic, high-bandwidth memory and advanced packaging. These are areas where Applied is the process equipment leader, and we expect to grow our semiconductor equipment business over 20 percent this calendar year."
"Applied Materials is up nearly 35% year-to-date, trading around $345.88. Applied makes the machines that build the chips. If AI is a gold rush, Applied makes the shovels, and demand for those shovels is accelerating. In its most recent quarter, Applied delivered non-GAAP EPS of $2.38 against a $2.21 estimate, a nearly 8% beat."
"Micron Technology is up 41% year-to-date, trading near $403. Last quarter, Micron posted non-GAAP EPS of $4.78 against a $3.94 estimate, a 21% beat. Revenue surged 56.6% year-over-year to $13.64 billion. GAAP gross margins expanded from 38.4% to 56.0% in a single year."
Applied Materials and Micron Technology have emerged as standout performers in the semiconductor sector amid a challenging AI market environment. Applied Materials, up 35% year-to-date, benefits from its position as a supplier of chip-manufacturing equipment, with DRAM revenue reaching record levels and representing 34% of its Semiconductor Systems segment. The company projects over 20% growth for calendar 2026. Micron Technology has surged 41% year-to-date, posting a 21% earnings beat with revenue growing 56.6% year-over-year to $13.64 billion. Gross margins expanded dramatically from 38.4% to 56.0%, reflecting strong demand for AI memory solutions. Both companies capitalize on the accelerating buildout of high-bandwidth memory infrastructure required for AI applications.
#ai-semiconductor-demand #applied-materials #micron-technology #memory-chip-manufacturing #stock-performance
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