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Applied Materials Surges 4.31% as Semiconductor Market Rebounds

AInvestMonday, Oct 14, 2024 6:31 pm ET
1min read

On October 14, shares of Applied Materials (AMAT) rose by 4.31%, marking a two-day increase of 4.87%. This uptrend pushed the stock to reach its highest level since July 2024 during intraday trading.

In 2023, amidst strong competition in the semiconductor manufacturing equipment sector, the focus shifted towards advanced products. While ASML, the Dutch equipment maker, managed to secure the top spot with impressive growth in high-performance photolithography sales, Applied Materials maintained its strong presence. Applied's equipment shipments grew by 2%, reaching $204 billion, a commendable feat given market challenges.

Revenue was particularly robust for devices catering to logic semiconductors, despite facing a downturn in the memory market. This segment experienced a notable slowdown due to reduced investments, highlighted by companies like SK Hynix cutting equipment expenditures by half. These shifts underscore the volatile nature of the memory market, impacting various manufacturers differently.

Looking ahead, the semiconductor manufacturing equipment market is anticipated to rebound. SEMI, an industry body, projects a 3% growth in 2024, reaching $983 billion, with a further 15% increase in 2025 to $1,128 billion. Crawford del Prete, President of IDC, suggests that the burgeoning AI industry will drive significant demand, further benefiting equipment suppliers like Applied Materials.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.