Applied Materials Projects Record 2027 Driven by Surging AI Infrastructure Demand
Applied Materials shares traded flat in premarket hours as the chip equipment maker reported a fourth-quarter revenue beat of $10.41 billion and projected that global cloud capital spending will surpass $1 trillion by 2027.
🧠AI AnalysisPhoto: Benzinga
Key points
- Applied Materials reported Q4 revenue of $10.41 billion, beating estimates.
- Global cloud capital spending is projected to exceed $1 trillion by 2027.
- First-quarter 2027 revenue is guided at $11.1 billion, topping analyst forecasts.
Semiconductor equipment maker Applied Materials reported strong fourth-quarter financial results, posting revenue of $10.41 billion that exceeded Wall Street's $10.30 billion consensus estimate. Adjusted earnings reached $4.16 per share, beating the expected $4.05. Despite the positive report, company shares moved fractionally lower by 0.09% to $380.59 during Friday premarket trading.
Company leadership pointed to massive artificial intelligence infrastructure expansion as the primary catalyst behind the robust outlook. Applied Materials projects that global cloud capital expenditure will climb more than 50% by 2027, crossing the $1 trillion threshold. Driven by this heavy demand for advanced chips, high-bandwidth memory, and sophisticated packaging, management anticipates another record-breaking fiscal year in 2027.
Looking ahead to the first quarter of fiscal 2027, the firm guided for revenue of $11.1 billion, give or take $500 million, surpassing analysts' predictions of $10.89 billion. Adjusted earnings are projected between $4.15 and $4.55 per share. Additionally, the company expects its Semiconductor Systems revenue to jump 69% to approximately $8.7 billion, while Applied Global Services is forecast to hit a record $2 billion.
- Revenue Beat: Q4 revenue came in at $10.41 billion against $10.30 billion expected.
- Earnings Outperformance: Adjusted EPS of $4.16 topped the $4.05 analyst consensus.
- Strong Outlook: Q1 2027 revenue projected at $11.1 billion, beating Wall Street estimates.
Source Benzinga — benzinga.com/markets/large-cap/26/11/63231559/applied-materials-see… ↗
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