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Applied Materials (AMAT) Unveils AIx for New Chip Technologies

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Applied Materials Inc. (AMAT - Free Report) is leaving no stone unturned to bolster its AI and Machine Learning (ML) capabilities in the wafer fabrication space.

This is evident from the latest introduction of AIx, which stands for Actionable Insight Accelerator.

Notably, AIx is a platform powered by big data and AI,which helps in the development and deployment of new chip technologies by allowing engineers to check semiconductor processes in real-time.

Further, these engineers will be able to take several measurements across wafers and individual chips.

The company strives to deliver enhanced outcomes across every stage, including research and development, ramp, and high-volume manufacturing via AIx.

Moreover, the new platform, which is extendable from lab to fab, is well-equipped in improvising semiconductor performance, power, area costs and time-to-market by helping in the optimization of several process variables.

Move to Benefit

We note that AIx features ChamberAI, backed by advanced sensors and ML algorithms, which offer real-time analytics of chemistry, energy, pressure, temperature and duration.

Further, it features AppliedPRO, which aids in optimizing individual chambers and tools. Also, AIx includes onboard metrology and inline metrology.

Additionally, it is comprised of digital twin models of select Applied Materials chambers and systems.

Furthermore, AIx helps in storing and analyzing huge data with the help of ML and AI algorithms.

We believe that AIx is expected to bolster Applied materials in the semiconductor fabrication space.

Bottom-Line

The company remains well-poised to capitalize on the uptick in the chip design activity across the world on the back of the new platform.

Moreover, the latest move bodes well for the company’s growing ML and AI efforts. It is applying ML in semiconductor fabs to enhance automated defect analysis.

The company has developed an automated defect classification technology that utilizes different imaging techniques to identify and eliminate defects in chip manufacturing.

With all these, the company is set to gain from strength in semiconductor equipment demand. Further, increased customer spending in foundry and logic on the back of the rising need for specialty nodes in IoT, communications, automotive and sensor solutions remains a positive.

Zacks Rank & Other Stocks to Consider

Currently, Applied Materials carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Microchip Technology (MCHP - Free Report) , Analog Devices (ADI - Free Report) and Agilent Technologies (A - Free Report) . All the three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for Microchip, Analog Devices and Agilent Technologies are currently pegged at 15.47%, 12.35% and 9%, respectively.

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