Applied Materials Surges 4.31% as Semiconductor Market Rebounds
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.