Applied Materials suprised the cocaine nose jobs of Wall Street by forecasting current quarter revenue and profit far above what was predicted. The company said that it is seeing increased demand for newer technology to make displays and smartphone memory chips.

It said that the rising popularity of mobile devices has fueled demand and investments in 3D NAND memory chips, which can store data without using up power.

Chief Executive Gary Dickerson said: "We are in the best position as the market goes forward in ramping 3D NAND."

Orders in its semiconductor systems business, Applied Materials's biggest, rose 10.4 percent in the third quarter that ended July 31. The company has also gained from growing demand for displays using organic light-emitting diode (OLED) technology, where its products help manufacture displays used in televisions, phones and computer screens.

Orders in the business surged 153 percent to $803 million in the latest quarter.

Applied Materials said it expected sales of $3.24 billion-$3.36 billion. Analysts were expecting a revenue of $2.87 billion. Applied Materials' net sales rose 13.3 percent to $2.82 billion in the third quarter.

The company's net income rose to $505 million, or 46 cents per share, from $329 million a year earlier. Analysts on average had expected a profit of  $2.84 billion.