Applied Materials Rises 5% as Samsung, SK Commit $516B to Chip Plants
AMAT•AMAT•AMAT•AMAT•Applied Materials shares jumped 5% after Samsung Electronics and SK Hynix unveiled plans to invest 800 trillion won ($516 billion) in four South Korean chip plants, driving a 7.5% surge in the Philadelphia Semiconductor Index over two days. Positive broker commentary lifted Applied Materials as investors anticipate stronger equipment orders.
Samsung Electronics Co. and SK Hynix Inc. unveiled plans to build two new memory chip plants each in South Korea, representing combined capital spending of 800 trillion won ($516 billion). This commitment drove a 7.5% rise in the Philadelphia Semiconductor Index over two days, with Applied Materials shares up 5% alongside ASML and KLA.
Positive commentary from a brokerage firm boosted Applied Materials further, reflecting investor expectations for stronger equipment orders to service memory fabrication growth. Analysts now forecast elevated demand for deposition and etching tools, potentially lifting Applied Materials’ revenue forecasts for the remainder of the year.
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