Applied Materials reported record fiscal Q3 revenue of $9.1 billion and EPS of $3.50, beating expectations with strong growth in semiconductor systems and DRAM revenue. However, shares fell 5.7% premarket as Q4 revenue and margin guidance, while strong, failed to meet the very high market expectations after a recent sharp stock run-up. Analysts noted slower system shipment growth and flat gross margins due to ramp costs. Industry peers Lam Research and KLA showed muted reactions, with Lam providing a bullish outlook for 2026 wafer fab equipment spending. Applied is building capacity to potentially double system output by 2028, signaling optionality rather than guaranteed revenue growth. Investors will watch if Applied stabilizes above $534 and how analysts adjust price targets post-earnings.
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...
