Applied Materials expects another record year in 2027. Management said expanding AI infrastructure is increasing demand for advanced chips and semiconductor manufacturing equipment. Applied Materials forecasts global cloud capital spending above $1 trillion in 2027, an increase of more than 50%.
Applied Materials generated $10.41 billion in fourth-quarter revenue, surpassing analysts' $10.30 billion estimate. Adjusted earnings reached $4.16 per share, exceeding expectations of $4.05.
Applied Materials projects revenue of $11.1 billion, plus or minus $500 million, for the first quarter of fiscal 2027, against analysts' $10.89 billion estimate. Applied Materials forecasts adjusted earnings between $4.15 and $4.55 per share, compared with the $4.26 estimate. Applied Materials projects a 69% increase in Semiconductor Systems revenue to about $8.7 billion. Applied Materials forecasts Applied Global Services revenue of a record $2 billion, representing growth of 28%.
Applied Materials forecasts growth of more than 30% in the wafer fabrication equipment (WFE) market in 2027. Advanced chips, high-bandwidth memory and sophisticated packaging technology are generating demand that supports growth. Applied Materials projects Semiconductor Systems revenue growth above 40% in calendar 2026. Applied Materials expects advanced packaging revenue to rise about 90% in calendar 2026. Inspection and metrology revenue is on course for growth above 50% in calendar 2026. Management said customers want production accelerated and equipment delivered sooner because demand exceeds supply in key semiconductor markets.
Applied Materials said monthly AI token consumption increased more than 50-fold in 2026 as employees used AI tools more extensively. Applied Materials expects AI token consumption to grow further in 2027.
Applied Materials forecasts higher China revenue in fiscal 2027. However, Applied Materials expects shipments to China will probably represent less than 25% of the company's business. Applied Materials also anticipates further market-share gains, higher margins and better operating efficiency. Applied Materials aims to add more than 2 percentage points to the company's WFE market share by 2030.
Benzinga Pro data showed Applied Materials shares trading at $380.59 in Friday's premarket session, down 0.09%, following the quarterly results.
Applied Materials Forecasts Record 2027 Amid AI-Driven Chip Demand Surge
BenzingaShare
Summary
Applied Materials (NASDAQ:AMAT) forecasts record 2027 revenue, driven by AI + crypto news and ecosystem growth. Q4 revenue hit $10.41 billion, beating estimates, with Q1 2027 expected at $11.1 billion. Semiconductor Systems revenue is set to jump 69% to $8.7 billion, while Applied Global Services revenue rises 28% to $2 billion. The wafer fabrication equipment market is expected to grow over 30%, fueled by AI token consumption surging more than 50-fold in 2026.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.