Applied Materials stock rises on new chip-making system that helps lower costs

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Applied Materials stock rises on new chip-making system that helps lower costs
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Applied Materials shares outperform their peers Tuesday after the chip-making equipment company unveils a lower-cost system of etching transistors.

Applied Materials Inc. shares outperformed their peers and the broader market Tuesday after the chip-making equipment company unveiled a system that promises a lower cost way of etching the transistors into the silicon wafers used to make semiconductors.

Applied Materials AMAT shares rose more than 5% to an intraday high of $118.07, while the PHLX Semiconductor Index SOX , which tracks Applied Materials and 29 other components of the semiconductor industry, was up 1.2%. Applied Materials said fabs can now print a single pattern and use the Sculpta “to elongate the shapes in any chosen direction to reduce the space between features and increase pattern density.”

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