ASML Rival Applied Materials Reports Record-High Quarterly Revenue

Applied Materials, a US-based chip equipment maker, reported strong fiscal third-quarter earnings, highlighting ongoing robust demand for artificial intelligence (AI) chip equipment.

Year-to-date, Applied Materials' shares have risen by 37%. I Photo: Applied Materials

The company is increasingly posing a threat to its global rival, ASML, Tina Teng reported for Euronews. Applied Materials exceeded analysts’ expectations, driven by strong sales growth in China.

Despite these results, the company’s shares fell by more than 2% in extended trading hours after a recent 5% jump.

Year-to-date, Applied Materials' shares have risen by 37%, while ASML’s shares have increased by 25%.

The company reported adjusted earnings per share of $2.12 (€1.93) on revenue of $6.78 billion (€6.18 billion), surpassing the expected $2.03 and $6.68 billion, respectively.

The revenue growth was largely driven by demand for its data storage, particularly Dynamic Random Access Memory (DRAM). Sales of DRAM accounted for 24% of its overall revenue, up from 17% in the same quarter last year.