Applied Materials reported a record Q2 FY2026 revenue of $7.91 billion, an 11% increase year-over-year, and a non-GAAP EPS of $2.86, up 20%. The company raised its equipment growth guidance for calendar year 2026 to over 30%, driven by strong performance in DRAM and AGS segments and improved order visibility. Despite a recent stock price drop of around 40% from its highs, the fundamentals remain strong, and the correction is seen as sector-related rather than company-specific. The firm maintains a Buy rating, viewing the current valuation of 34 times forward P/E as an attractive entry point.
Chip equipment stocks, led by Lam Research's 5% rise, outperformed the broader semiconductor sector on Friday. Applied Materials and KLA Corp. also gained 4% and 3%, respectively, as investors focused on the tools layer, which reflects future chipmak...
Steve Eisman recommends investing in chip suppliers like Micron, SK Hynix, ASML, KLA, Lam Research, and Applied Materials rather than chip designers amid the AI arms race. These suppliers have outperformed Nvidia in 2026, benefiting from strong AI-dr...
