Applied Materials (AMAT) Soars 2.42% on AI Demand

Applied Materials (AMAT) shares rose 0.21% today, marking the second consecutive day of gains, with a total increase of 2.42% over the past two days. The stock price reached its highest level since January 2025, with an intraday gain of 1.52%.

Applied Materials is experiencing positive stock performance due to several key factors. The company is benefiting from the rising demand for AI infrastructure, which has driven traction in its Logic and DRAM businesses. These segments are crucial as AI operations require both logic chips for processing workloads and memory chips for data storage. The demand for fabrication, patterning, and advanced packaging systems is increasing, creating growth opportunities for AMAT.

Additionally, AMAT's Sym3 Magnum etch system has gained significant traction, generating over $1.2 billion in revenue since its launch in February 2024. The company’s Cold Field Emission eBeam technology is also expected to gain traction as chips miniaturize to support AI. Furthermore, AMAT's advanced DRAM customer revenues are projected to grow more than 40% in fiscal 2025, driven by the demand for DDR5 and high-bandwidth memory used in AI workloads. These factors contribute to AMAT's stock price increase and positive outlook.