Applied Materials' stock surged 11.61% in pre-market trading following the release of its quarterly financial results, which significantly exceeded market expectations. The semiconductor equipment maker reported robust performance driven by accelerating investments in artificial intelligence computing.

The company posted first-quarter adjusted earnings per share of $2.38, beating analyst estimates of $2.20, with revenue reaching $7.01 billion compared to expectations of $6.87 billion. More importantly, Applied Materials provided strong second-quarter guidance, forecasting revenue of approximately $7.65 billion (plus or minus $500 million) versus analyst estimates of $7.01 billion, and adjusted earnings of about $2.64 per share compared to the $2.28 consensus estimate.

CEO Gary Dickerson stated that results were "fueled by the acceleration of industry investments in AI computing," with demand for higher-performance and more energy-efficient chips driving growth for leading-edge logic, high-bandwidth memory, and advanced packaging technologies. The company expects its semiconductor equipment business to grow more than 20% this calendar year, reflecting the strong tailwinds from AI infrastructure development and global memory shortages.