New Buyback for Applied Materials

Applied Materials (AMAT Quote - Cramer on AMAT - Stock Picks) said its board approved a new three-year share repurchase program covering up to $5 billion of the chip-equipment maker's stock.

The company has repurchased more than $5.8 billion of its common stock during its 2005 and 2006 fiscal years, or nearly 340 million shares.

"We believe the long-term outlook for Applied Materials is excellent, and we are confident in our strategy," said Mike Splinter, president and CEO. "Our strong balance sheet and significant cash flows enable us to invest in our future business, pursue strategic opportunities, repurchase shares and pay quarterly dividends."

Shares of Applied were rising 39 cents, or 2.3%, to $17.59 in premarket trading Monday.