Overview
- Applied Materials, which reported results Thursday, posted $7.91 billion in revenue and $2.86 in adjusted EPS, both above forecasts, and guided third‑quarter revenue to about $8.95 billion with adjusted EPS of $3.16 to $3.56.
- Shares rose after hours Thursday then slipped Friday premarket as investors took profits following a big year‑to‑date run and digested lofty expectations.
- Management now expects its chip‑making tools business to grow more than 30% in 2026 and projects packaging revenue to rise over 50%, while expanding manufacturing capacity in the U.S., Europe and Singapore to meet AI demand.
- To sharpen its edge in advanced packaging, the company agreed to buy ASMPT’s NEXX unit, which adds electrochemical deposition gear for larger panel substrates, and it launched a joint program with TSMC at its EPIC Center to speed new materials and processes into production.
- Wall Street lifted price targets — including Citi to $520, Cantor Fitzgerald to $550 and Lynx to $540 — citing a multi‑year upswing in chip‑factory equipment spending tied to AI, while some notes highlight export limits to China and a rich valuation as ongoing risks.