Applied Materials reports record revenue amid AI demand

Applied Materials reported record-breaking results for its fiscal third quarter, including $9.1 billion in revenue, representing a 25% increase year-over-year. The company’s non-GAAP earnings per share reached a record $3.50, up 41% from the previous year. CEO Gary Dickerson noted that the company achieved its highest quarter-on-quarter revenue growth in its history.

Growth was driven largely by demand for artificial intelligence (AI) infrastructure, specifically in leading-edge chipmaking, DRAM, and advanced packaging. DRAM revenue, which includes high-bandwidth memory (HBM) packaging, grew 52% year-over-year.

Despite beating analyst estimates and providing strong guidance for the fourth quarter—projecting revenue between $9.75 billion and $10.75 billion—the company’s stock fell approximately 5% to 6% in after-hours trading. Analysts pointed to high market expectations and specific scrutiny regarding gross margins as potential factors for the sell-off.