Applied Materials, an American company that manufactures equipment necessary for the production of chips, has released a forecast for the current quarter, which contains optimistic expectations and statements about the likely weakening of the downturn in the industry.

Last Thursday, August 17, this firm published a statement that by the end of the fourth fiscal quarter, it forecasts sales of about $6.5 billion. At the same time, analysts expect a more modest result of $5.8 billion. The company also expects to make a profit in the range of $1.18 to $2.18 per share based on the results of the fourth fiscal quarter.

The chief executive officer of the firm, Gary Dickerson, says that the growth of the results of the brand he heads is ensured by the transition to artificial intelligence-based computing and an increase in the number of devices connected to the Internet. According to him, these factors are a kind of basis for the company’s efficiency in 2023 and a reason for positioning the equipment manufacturer for sustainable outperformance.

The firm’s profit indicator for the third fiscal quarter was $1.90 per share, excluding certain items. The company’s sales volume for this period in monetary terms was fixed at $6.43 billion.

Customers of the equipment manufacturer are currently reducing the intensity of the implementation of the strategy to expand the scope of activities. During the previous three years, the firm’s clients demonstrated a high level of purchasing activity. The current trend of decline is due to the fact that many companies are overcoming the problem of oversaturation of the market with electronic components.

Applied Materials expects that the current situation, which is not the most favorable from the point of view of the commercial interests of the equipment manufacturer, will significantly improve in the short term. The company also predicts that by 2030, the total revenue of the semiconductor industry will reach $1 trillion.

Currently, the scale of chip use is not limited exclusively to the computer industry. Increasingly, semiconductors are applied in industrial equipment, the automotive industry, and products belonging to the category of the Internet of Things, including smart home appliances and security systems.

Gary Dickerson, during a conference call with analysts, said that mass-consumption devices, buildings, factories, and infrastructure are getting more and more intelligent components and are becoming more functional and efficient.

During the mentioned conference, the financial director of the firm Brice Hill said that about 5% of the Applied Materials equipment for the production activity is intended for the artificial intelligence market.

Some analysts say that if the scenario of a weakening downturn in the industry is realized, sales of Applied Materials will return to growth in the second half of 2024.

As we have reported earlier, Applied Materials Expands in India.