Applied Materials jumps as AI demand drives chipmaking tool orders

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.