Applied Materials Inc. (AMAT) is an American semiconductor equipment manufacturer based out of California.
And with the ongoing chip shortage, the company is benefiting from a major boost in demand…
In a press release, CEO Gary Dickerson explained that AMAT saw record financials in the third quarter. He added that this was fueled by strong semiconductor demand and consumers’ shift to digital services.
In fact, the company reported earnings per share of $1.90 compared to the estimated $1.77. The chip equipment maker’s revenue was $6.2 billion during the same period, topping Wall Street’s expected $5.94 billion.
AMAT forecasts this trend will continue into the fourth quarter as well. The company said its earnings per share could come in at around $1.87 to $2.10, greater than the anticipated $1.81. AMAT projects revenue may be around $6.33 billion compared to the estimated $6.04 billion.
This is because the company announced a variety of new technologies to streamline chip design and integration. These technologies include software modeling and simulation for wafer bonding, as well as hybrid wafer-to-wafer bonding solutions.
But more broadly speaking, AMAT is one of the major beneficiaries of the semiconductor-supply shortage. And with chipmakers such as Intel (INTC) forecasting supply will remain tight through 2022, companies will continue to rely on AMAT for the necessary equipment to make semiconductors work.
Overheard at Apple’s Secret Meeting…
Sponsored
A thousand people attended…
NO CAMERAS were allowed!
One invitee said every iPhone was wrapped with “tamper-proof stickers” to prevent photographs.
At the event, Apple unveiled a device that “could eventually replace mobile phones.”
Apple codenamed the device “N421”…
But I call it “iPhone Killer.”
To see how you could potentially profit from iPhone Killer…