What Applied Materials’ Q2 earnings mean for chip industry

Applied Materials (AMAT) reported second quarter earnings per share of $2.09, exceeding estimates by $0.10. Revenue came in at $6.65 billion, surpassing the expected $6.52 billion. Yahoo Finance hosts Josh Lipton and Julie Hyman, along with Futurum Chief Market Strategist Cory Johnson, analyzed the company’s earnings and their implications for the artificial intelligence race. AMAT’s stock performance has been strong, with a 33% increase year-to-date. The company, a major supplier of chip making equipment to industry giants like TSMC, Intel, and Samsung, plays a crucial role in the chip industry. The market closely watches AMAT’s performance as an indication of the overall health of the industry. The company’s strong results are a positive sign for the semiconductor sector. Despite a flat performance compared to the previous year, AMAT’s foundry services business has been performing well. Companies that show growth tend to fare better in the market compared to those that are shrinking. The earnings call is expected to shed more light on the semiconductor industry’s turnaround. Various semiconductor companies have reported mixed results recently, making AMAT’s performance even more significant.