Applied Materials jumps as AI demand drives chipmaking tool orders


FILE PHOTO: A smartphone with a displayed Applied Materials logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Feb 13 (Reuters) - Applied Materials' shares ⁠jumped 11.7% in premarket trading on Friday as investors bet that ⁠surging AI demand and a tightening memory market will continue ‌to drive orders for the company's chipmaking tools, after it forecast second-quarter revenue and profit above Wall Street estimates.

The largest U.S. semiconductor equipment maker is positioned to capitalize on robust AI ​chip demand, which is consuming global memory supplies ⁠and driving chipmakers to expand ⁠capacity, a trend analysts say could support multi-year growth.

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