Overview
- Applied Materials, which reported fiscal second‑quarter results Thursday, posted revenue of $7.91 billion and adjusted EPS of $2.86, topping estimates and guiding next quarter to about $8.95 billion in sales and $3.36 in EPS.
- The company lifted its 2026 semiconductor‑equipment growth view to more than 30% as customers scale leading‑edge logic, high‑bandwidth memory, and advanced packaging for AI chips.
- Management said demand visibility is improving as it boosts factory capacity and inventories to meet orders for processes like atomic layer deposition and advanced etch that shape complex 3D chip structures.
- Applied is broadening its packaging footprint with a deal to buy ASMPT’s NEXX electrochemical deposition business and a new EPIC Center collaboration with TSMC to speed new processes from lab to high‑volume output.
- Analysts raised targets following the beat and guidance, with Citi at $520, Cantor Fitzgerald at $550, HSBC at $517, UBS at $480, Lynx Equity at $540, and RBC at $500, while some note rich valuation and flat China sales under export limits.