Applied Materials reported record second-quarter revenue on Thursday and forecasted third-quarter revenue above Wall Street expectations, anticipating that robust investment in data centers and AI infrastructure will continue to drive demand for its chip-making equipment.
The Santa Clara-based semiconductor equipment company expects revenue of about $8.95 billion, plus or minus $500 million, for the current quarter, compared with analysts’ estimates of $8.09 billion.
Shares initially jumped in extended hours but reversed to fall over 3% in Friday’s premarket trading. The stock has rallied more than 71% this year.
The surge in AI demand is boosting equipment suppliers like Applied Materials, since producing more advanced AI chips requires additional silicon wafers and increasingly complex manufacturing techniques.
The company generated record revenue of $7.91 billion, up 11% from the same quarter last year, above consensus estimates of $7.68 billion.
CEO Gary Dickerson said: Applied Materials delivered record quarterly performance, and we now expect our semiconductor equipment business to grow more than 30% in calendar 2026.
Adjusted profit of $2.86 per share beat analysts’ estimate of $2.68.
Goldman Sachs analyst James Schneider said shares should continue to re-rate given strong guidance uplift and improving mix, and misconceptions like market share loss in China should reverse in CY26.
