Share prices of semiconductor manufacturing equipment maker Applied Materials (NASDAQ: AMAT) soared after its latest quarterly update. On the surface, the financials were nothing to be excited about. Some hype surrounding generative artificial intelligence (AI) coming to smartphones, PCs, and an app near you (a growth cycle Applied Materials most certainly participates in) might offer some explanation for the stock price running higher.

But what's the real reason this stock is up over 60% in the past year?

It likely boils down to the business managing to sidestep not one, but two different cyclical downturns for the semiconductor industry. It also helps that it fully expects more profitable growth in 2024. Here's why Applied Materials looks to be an exceptional AI stock this year and beyond.

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Source Fool.com