Applied Materials Inc NASDAQ:AMAT Price, Chart, News & Insight

Applied Materials Drops 3.35% in Premarket Despite Record Beat as Lofty Valuation and High Bar Weigh

May 14, 2026 | NASDAQ: AMAT

Applied Materials delivered what was objectively a blowout quarter — and the stock is still falling 3.35% in premarket. The paradox is a familiar one for a stock that entered earnings up over 60% year-to-date near a 52-week high: when expectations are already elevated, even a clean beat requires truly exceptional forward guidance to move the needle higher.

The consensus heading into last night's report was for $2.68 in adjusted EPS and $7.69 billion in revenue. Applied blew past both — delivering record revenue of $7.91 billion, up 11% year-on-year, and non-GAAP EPS of $2.86, a 7% beat on the bottom line and a 3% beat on revenue. GAAP EPS of $3.51 grew 33% year-on-year. Semiconductor Systems revenue grew to $5.965 billion with operating margin expanding to 35.1%. The company also raised its semiconductor equipment industry growth forecast to more than 30% for calendar 2026, up from the prior "more than 20%" guidance.

The Q3 guidance is where the market appears to be hitting a speed bump. Applied guided Q3 revenue to $8.95 billion plus or minus $500 million, and non-GAAP EPS of $3.36 plus or minus $0.20 — against Street estimates of approximately $8.15 billion and $2.88 respectively. On paper those are significant beats-to-come. But options markets had priced in a roughly 7% post-earnings move, and initial afterhours trading actually saw the stock rise 1.6% before fading. The premarket decline suggests that investors who were positioned for a larger upside catalyst are unwinding.

China is likely the key overhang. China accounted for approximately 30% of total revenue, and any softening commentary on license requirements or tariff retaliation would pressure the calendar 2026 setup. With the Trump-Xi summit in Beijing this week and chip export policy in active negotiation, the uncertainty around Applied's largest single region is significant regardless of how strong the underlying numbers are.

The longer-term picture from management is unambiguously bullish. CEO Gary Dickerson raised the semiconductor equipment growth forecast to more than 30% for 2026 and indicated a similar growth profile in 2027, with leading-edge foundry logic, DRAM, and advanced packaging expected to account for more than 80% of year-on-year wafer fab equipment spending growth. Packaging revenues alone are expected to grow more than 50% in calendar 2026. New EPIC Center partnerships with TSMC, SK hynix, Micron, ASU, RPI, and Stanford reinforce Applied's position at the center of next-generation AI chip development.

The 3.35% premarket decline is less a verdict on the business — which is clearly accelerating — and more a reflection of a stock that had already priced in much of the good news after a 60%-plus year-to-date run heading into the print. At a P/E of approximately 45x, the market is expecting perfection, and even a near-perfect quarter can disappoint when the bar is set this high.

💬 🔗

Global Finance News 05-15-26

Applied Materials to Report Fiscal Second Quarter 2026 Results on May 14, 2026

💬 🔗

The Investor 04-24-26

Applied Materials announced that Advantest has joined its EPIC platform as an innovation partner, aiming to accelerate the development and commercialization of next-generation semiconductors. The collaboration will focus on integrating front-end chip manufacturing with back-end testing processes to improve efficiency and speed to market.

As part of the partnership, Advantest will establish a new innovation center at Applied Materials’ Silicon Valley R&D campus, enabling close collaboration on advanced chip design, testing, and packaging technologies.

The initiative comes as increasing complexity in AI and high-performance computing chips drives demand for tighter coordination across the semiconductor value chain. The companies said the partnership will help develop more integrated and scalable solutions for next-generation devices.

Applied Materials highlighted the EPIC platform as a key effort to reduce the time required to bring new semiconductor technologies from research to full-scale production.
Globe Newswire

💬 🔗

European Investor 04-21-26

Applied Materials Unveils New Systems for Next-Generation AI Chips

Applied Materials introduced two advanced deposition systems designed to support production of cutting-edge logic chips at 2nm and beyond.

The new technologies target Gate-All-Around (GAA) transistor architectures, enabling atomic-scale precision in material deposition to improve chip performance and energy efficiency. The Precision Selective Nitride system enhances transistor isolation, reducing power loss, while the Trillium ALD system enables highly uniform metal gate structures critical for advanced chip functionality.

The systems are already being adopted by leading chipmakers and are aimed at supporting the growing demand for AI computing, where performance and power efficiency are increasingly driven by materials engineering rather than traditional scaling alone.

Applied Materials said the innovations will help manufacturers build more powerful and efficient processors, supporting the next phase of AI infrastructure development.
Globe Newswire

💬 🔗

WS Investor 04-09-26

Applied Materials has introduced new deposition systems designed for next-generation “angstrom-era” logic chips, targeting advanced semiconductor manufacturing at 2nm and beyond.

The company unveiled the Precision™ Selective Nitride PECVD system and the Trillium™ ALD system, both engineered to enable atomic-level precision in building Gate-All-Around (GAA) transistors. These technologies allow chipmakers to create smaller, faster, and more energy-efficient transistors critical for AI-driven computing.

The Precision system improves transistor isolation by reinforcing shallow trench structures, reducing energy loss and boosting performance efficiency. Meanwhile, the Trillium system enables highly uniform metal deposition in complex 3D transistor architectures, enhancing reliability and enabling tailored performance for different AI workloads.

Applied Materials said the systems are already being adopted by leading chip manufacturers, reflecting growing demand for advanced materials engineering solutions as traditional chip scaling approaches reach their limits.
Globe Newswire

💬 🔗

WS Investor 04-08-26

The AI Supercycle: How the AMAT-Micron Alliance is Shaping the Future of Tech

Mary Ellen McGonagel digs into the topic of supercycles and where we at in a new AI-driven supercycle.

(articles.stockcharts.com)

💬 🔗

WS Investor 03-15-26

Applied Materials, Inc. announced that its Board of Directors has approved $0.53 quarterly dividend per share, payable on June 11, 2026 to shareholders of record as of May 21, 2026

💬 🔗

The Investor 03-13-26

Applied Materials and Micron Technology announced a collaboration to develop next-generation memory technologies for artificial intelligence systems. The partnership will focus on advancing DRAM, high-bandwidth memory (HBM) and NAND storage solutions designed to deliver higher performance and improved energy efficiency for AI workloads.

The joint research will take place at Applied Materials’ new EPIC Center in Silicon Valley and Micron’s innovation facilities in Boise, Idaho. Engineers from both companies will work together on new materials, semiconductor manufacturing processes, device architectures and advanced packaging technologies to accelerate the development and commercialization of future memory chips.

The companies said the collaboration aims to strengthen the U.S. semiconductor innovation pipeline and shorten the time from early research to high-volume manufacturing. The EPIC Center, which represents a planned investment of up to $5 billion, is intended to help chipmakers rapidly move new technologies from laboratory development to production.
Globe Newswire

💬 🔗

European Investor 03-10-26

Applied Materials, Inc. announced it has reached a settlement with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) regarding alleged violations of U.S. Export Administration Regulations tied to certain shipments to China between November 2020 and July 2022.

Under the agreement, Applied will pay $252.5 million to the Department of Commerce. The company said the matter stemmed from a misunderstanding of the regulations’ applicability.

Separately, the U.S. Department of Justice and the U.S. Securities and Exchange Commission have closed their related investigations without taking action.

Applied stated that resolving the issue is in the best interest of stakeholders and reaffirmed its commitment to export-control and trade-compliance practices.

Source: Globe Newswire

💬 🔗

European Investor 02-12-26

Applied Materials (Nasdaq: AMAT) announced that Samsung Electronics will join its new $5 billion EPIC (Equipment and Process Innovation and Commercialization) Center in Silicon Valley, set to become the world’s largest collaborative semiconductor process and equipment R&D facility.

The EPIC Center will focus on joint R&D programs aimed at accelerating advanced node scaling, future memory architectures and extreme 3D integration. The co-development efforts will target next-generation materials and atomic-scale innovations in patterning, etch and deposition processes for advanced logic and memory chips.

CEO Gary Dickerson said the growing demand for energy-efficient AI chips requires a new collaboration model to speed innovation. Samsung Vice Chairman and CEO Young Hyun Jun highlighted the deepening partnership to advance leading-edge semiconductor equipment technologies.

The facility, expected to become operational in 2026, is designed to shorten the time from early-stage research to commercialization by enabling parallel development, faster learning cycles and tighter ecosystem collaboration.

Source: Globe Newswire

💬 🔗

WS Investor 02-11-26

NASDAQ:AMATFollow

The AI Supercycle: How the AMAT-Micron Alliance is Shaping the Future of Tech

NASDAQ:AMAT