applied materials CEO Gary Dickerson said Thursday that he believes the semiconductor industry is experiencing its strongest period ever due to accelerating demand for artificial intelligence.
“This is the best time in the history of our industry and Applied Materials,” Dickerson said on CNBC’s “Mad Money.” “AI is driving incredible computing demand.”
Applied Materials is one of the leading suppliers of equipment used to manufacture advanced semiconductors. Other companies in the Semicap Equipment group include: ram research and KLA Corporation. Although not as famous as chip designers and foundry operators, Nvidia and Taiwan Semiconductor Manufacturing Co., Ltd.they are a critical cog in the industry’s supply chain.
Applied Materials’ stock price has soared about 178% over the past year, and Dickerson insisted the momentum is far from over. The company is gaining visibility into future demand as customers race to build out more AI infrastructure.
“We are guiding for tremendous growth,” he said. “This modulation will continue for a very long time.”
Dickerson dismissed concerns that the semiconductor industry could return to traditional boom-bust cycles, arguing that demand has become more durable and predictable in the AI era.
“We have unprecedented visibility into our business,” he said, adding that conversations with customers are already focused on demand in 2027 and 2028.
To keep pace, Dickerson said Applied has made significant investments in its business operations and supply chain.
“We have made significant investments in our operations and have been able to almost double our operational capacity,” he said. “But again, demand will only continue to grow.”
He believes the long-term opportunity remains significant, as rising demand for AI drives the need for increasingly sophisticated chips and the equipment needed to manufacture them.
“AI will transform every industry,” Dickerson added. “This is the most viable innovation of our lifetime.”
