Applied Materials CEO: this 'is the greatest time in the history of the industry

Gary Dickerson, the CEO of Applied Materials, declared on Thursday that the semiconductor industry is currently experiencing an unprecedented boom, largely fueled by a surge in demand for artificial intelligence technologies. Speaking on CNBC's "Mad Money," he stated, "This is the greatest time in the history of the industry and for Applied Materials. AI is driving incredible computing demand." Applied Materials plays a crucial role in the semiconductor supply chain, providing essential equipment for the manufacturing of advanced chips. While companies like Nvidia and Taiwan Semiconductor Manufacturing Co. often take the spotlight, firms such as Applied Materials, Lam Research, and KLA Corp are vital components in this ecosystem. Over the past year, Applied Materials' shares have skyrocketed by approximately 178%, and Dickerson is confident that this upward momentum is just beginning. He highlighted the company's strong visibility into future demand as clients accelerate their efforts to develop more robust AI infrastructures. "We're guiding for tremendous growth," he emphasized. "This inflection is going to go on for a very long time." Addressing concerns about the semiconductor sector potentially falling back into cyclical patterns of boom and bust, Dickerson insisted that current demand is more sustainable and predictable, especially in the context of AI advancements. "We have really unprecedented visibility in terms of our business," he noted, revealing that discussions with customers are already focused on demand projections for 2027 and 2028. To meet this rising demand, Applied Materials has made significant investments in its operations and supply chain, aiming to double its operational capacity. "The demand just keeps going higher," Dickerson said, reinforcing the idea that the future holds substantial opportunities as AI continues to shape the need for sophisticated chips and the machinery required for their production. "AI is going to transform every industry," he added, calling it "the most enabling innovation of our lifetimes."