Shares of Applied Materials (AMAT -3.87%) jumped as much as 9.7% higher on Friday morning, driven by an impressive earnings report. The stock had settled down at a calmer 8.1% gain at 10:45 a.m. EST.
In the first quarter of fiscal year 2021, Applied Materials' net sales rose 24% year over year to $5.16 billion. Adjusted earnings jumped from $0.98 to $1.39 per diluted share. The Street consensus had pointed to earnings near $1.28 per share on sales in the neighborhood of $4.97 billion. The engineered materials expert also provided second-quarter guidance well above analyst estimates.
Applied Materials' strong sales rested on "acceleration of demand" for the company's semiconductor materials.
"We are seeing a diverse combination of macro and technology factors fueling very strong and sustainable demand for semiconductors," CEO Gary Dickerson said on the earnings call. "As the world continues to navigate the current challenges and prepares for a post-pandemic era, the digital transformation of the economy is being accelerated."
Based on these positive market trends, Dickerson expects that Applied Materials' good times will keep rolling for the foreseeable future. It's no surprise to see this stock surging to fresh all-time highs today.