Why Applied Materials Stock Rose 22.2% in February

Semiconductor equipment supplier Applied Materials (NASDAQ: AMAT) rose 22.2% in February, according to data provided by S&P Global Market Intelligence. The company benefited not only from a strong earnings report in the middle of the month, but also from strong results from peers and customers that forecast heavy spending on semiconductor equipment this year.

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Applied Materials started off the month strong, riding the tailwind from the late January earnings report from key customer Taiwan Semiconductor Manufacturing (NYSE: TSM). TSM is the largest semiconductor foundry in the world, and a key Applied customer. On TSM's earnings call, which already revealed strong growth, management forecast a whopping $25 billion to $28 billion in capital expenditures in 2021 to satisfy overwhelming demand. That's a 52% increase at the midpoint over the prior year! More capex at TSM means more revenue and profits for Applied Materials.

Source Fool.com