Benefiting from the growing demand for artificial intelligence (AI) chips, Applied Materials (AMAT), a major global supplier of chip manufacturing equipment, achieved a record revenue of US$6.78 billion in the third quarter of 2024, a year-on-year increase of 5.4%, exceeding the market expectation of US$6.68 billion; after deducting some items, earnings per share were US$2.12, higher than analysts' expectations of US$2.03.

Although the third-quarter performance exceeded expectations, Applied Materials' revenue and earnings per share guidance for the fourth quarter were only in line with market expectations. It is expected that the fourth-quarter revenue will reach US$6.93 billion and earnings per share will be about US$2.18, both in line with market expectations, which disappointed some investors. After the results were announced, the company's stock price fell more than 2% in after-hours trading.

Applied Materials CEO Gary Dickerson said that demand for high-end processor manufacturing equipment remains strong, especially equipment used to develop and run artificial intelligence software. Competition in AI data centers is driving chip demand, and the leader is expected to win the market. However, some of the company's businesses, such as ICAPS products (Internet of Things, Communications, Automotive, Power and Sensors), have performed flat due to weaker demand from the automotive industry, but Dickerson remains optimistic about its long-term demand.