Applied Materials guides 30% YoY semiconductor equipment growth; stock up 105% YTD.
Applied Materials (NASDAQ: AMAT) reports third-quarter financial results Thursday after market close, with the stock up 105% year-to-date but down 25% from June 30 all-time highs.
Analysts expect record third-quarter revenue of $9.00 billion, up from $7.30 billion in the prior year, surpassing the $7.91 billion recorded in the second quarter. Applied Materials has beaten revenue estimates in four consecutive quarters and nine of the last ten overall. Analysts project third-quarter earnings per share of $3.39, up from $2.48 year-over-year, extending a streak of earnings beats exceeding ten consecutive quarters.
Bank of America Securities highlighted Applied Materials as a compelling entry point following the July pullback. Analyst Vivek Arya, who issued a Buy rating with a $720 price target in July, noted the selloff creates opportunity after the stock hit all-time highs on June 30. Arya emphasized Applied Materials as the largest and most diversified name in the semiconductor equipment space, providing exposure across multiple segments of the upcycle. At 28 times forward earnings estimates, he characterized the valuation as the widest discount to peers in five years.
The company's second-quarter revenue grew 11% year-over-year, with management citing strong leadership positions across several sectors. Notably, Applied Materials raised its semiconductor equipment segment guidance to 30% year-over-year growth for calendar 2026, up from prior guidance of 20%. This optimism positions the company to deliver record results.
As a major component of semiconductor ETFs and broad market indexes, Applied Materials carries significant influence over sector-wide performance following earnings volatility. The stock currently trades at $551.68, within a 52-week range of $154.46 to $739.67. Investors will watch closely whether record results and strengthened guidance prove sufficient to reignite momentum and push shares back toward all-time highs.