Applied Materials (AMAT) CEO Dickerson Discusses Company Growth on CNBC

As shares of Applied Materials (AMAT) soar Wednesday, CEO Gary Dickerson explained how the semiconductor manufacturer continues to grow on CNBC today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Applied Materials (AMAT) - Get Report is entering a "really exciting time," CEO Gary Dickerson told CNBC's Carl Quintanilla on "Squawk Alley" Wednesday.

"We just announced last quarter orders of $3.5 billion [and] guiding to record earnings, 25% above our previous record. We're in the early innings of some big multi-year waves. Memory technology is changing more than it has in decades, especially the growth in 3D NAND," Dickerson explained.

Applied Material shares are trading at higher levels today, not seen since November 2003, after the semiconductor manufacturer announced its 2016 second quarter orders increased 52% to $3.45 billion. In addition, the company released its next-generation e-beam inspection system, Applied PROVision, earlier in the week.

"The key thing for Applied Materials is our total available market goes up by a factor of three with this new memory technology and its enabled by material innovation," Dickerson said.

"Can you explain to investors how you are able to move out of the way of a couple of trends that would seem to be bad for you? PC sales declining, smartphone sales maturing?" CNBC's Jon Fortt asked.

"Early-year waves" such as the transformation of memory technology keeps business growing despite negative pressures on products that used to be pertinent to Applied Materials' success, Dickerson replied.

"And the third multi-year wave that we're riding is the growth of organic LED displays in mobile devices. Applied is unique in this enabling of LED displays," he continued.

Shares of Applied Materials are rising by 1.59% to $25.82 this afternoon.

Separately, TheStreet Ratings rated Applied Materials as a "buy" with a score of A-.

This is based on strengths seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently TheStreet Ratings does not see any significant weaknesses which are likely to detract from the generally positive outlook.

You can view the full analysis from the report here: AMAT

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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