Applied Materials Predicted AI Equipment Sales Doubling to $5B, Sparking 237% Rally
AMAT•AMAT•AMAT•AMAT•Applied Materials projected its AI-related advanced-node equipment revenue would rise from $2.5B in 2024 to about $5B in 2025, alongside over 40% advanced DRAM growth, before its 237% stock surge. Options market implied volatility dropped from the 75th to the 36th percentile, indicating investor complacency.
Before the rally, trailing twelve-month revenue growth was just 2.1%, a slowdown from the three-year average that masked the company’s deeper AI-related momentum.
Management disclosed $2.5B in advanced-node AI equipment revenue in late 2024 and forecast it would approximately double in 2025, while projecting over 40% growth from advanced DRAM customers.
Despite these forecasts, implied volatility eased from the 75th to the 36th percentile, reflecting market complacency ahead of a 237% stock surge.
