Meta’s AI Chip Plan Spurs 6.5% Rally in Applied Materials Shares
AMAT•Applied Materials shares rose 6.5% after reports Meta Platforms will start manufacturing its in-house AI chip in September, bolstering demand outlook for wafer fabrication equipment. Lam Research and KLA Corp also jumped on the same news, reflecting broad semiconductor-equipment sector strength driven by AI infrastructure investment.
1. Meta Platforms Plans In-House AI Chip
Meta Platforms will begin manufacturing its proprietary AI accelerator chip in September, marking a major shift toward internal chip development and reducing dependency on external foundries.
2. Applied Materials Shares Jump 6.5%
Applied Materials stock surged 6.5% as investors anticipate an uptick in orders for its wafer fabrication tools—particularly deposition and etch systems—needed to support Meta’s chip production.
3. Broad Semiconductor Equipment Rally
Following Meta’s announcement, Lam Research and KLA Corp also posted significant gains, underscoring sector-wide optimism that AI infrastructure spending will drive capital expenditure for chip-equipment suppliers.
