This is the greatest time ever for semiconductors, says CEO of key equipment supplier
Applied Materials CEO Gary Dickerson said Thursday that the semiconductor industry is experiencing what he believes is its strongest period ever, driven by growing demand for artificial intelligence.
“This is the best time in the history of the industry and Applied Materials,” Dickerson said during an appearance on CNBC’s “Mad Money.” “AI is driving incredible computing demand.”
Applied Materials is a major supplier of equipment used in the production of advanced semiconductors. Other companies in the Semicap equipment group include Lam Research And KLA Company. Although not as well known as chip designers or foundry operators Nvidia And Taiwan Semiconductor Manufacturing Inc.These are critical cogs in the industry supply chain.
Shares of Applied Materials rose nearly 178% last year, and Dickerson argued that momentum is far from over. The company can see future demand as customers race to build more AI infrastructure.
“We are leading the way for tremendous growth,” he said. “This twist will continue for a very long time.”
Dickerson pushed back on concerns that the semiconductor industry could return to its traditional boom-and-bust cycle, arguing that demand has become more resilient and predictable in the age of artificial intelligence.
“We have truly unprecedented visibility into our business,” he said, adding that customer conversations are already focused on demand in 2027 and 2028.
To keep up, Applied Materials is investing heavily in operations and supply chains, Dickerson said.
“We have invested heavily in our operations so that we have been able to almost double our operational capacity,” he said. “But still demand continues to rise.”
He believes the long-term opportunity remains significant as growing demand for AI drives the need for increasingly advanced chips and the equipment needed to produce them.
“Artificial intelligence will transform every industry,” Dickerson added. “This is the most possible innovation of our lives.”
