- Applied Materials estimates fiscal 2024 earnings of $8.50 a share on sales of $26.7 billion
- The new guidance sent shares of other manufacturers tumbling as well, with ASML Holding slipping 2%
- AMAT stock price has moved lower to trade about 6% off the record highs at $146.00
Shares of the American semiconductor equipment manufacturer Applied Materials (NASDAQ: AMAT) have rotated lower this week after the company published a new financial model for 2024 and other future plans which have raised concerns among investors.
Fundamental analysis: New guidance announced
Under the new outlook, Applied Materials outlined their vision for the following several years and said that the chip industry is now of utmost strategic importance to the world economy.
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The companys executives said that there is a new surge in silicon consumption in the United States and other parts of the world, as a result of growing technologies such as artificial intelligence.
The AI inflection is driving a new era of innovation and secular market growth. Its clear that the future isnt going to be like the past. AI computing workloads require new semiconductor solutions at a time when traditional Moores Law scaling is slowing down, said Applied Materials CEO Gary Dickerson.