Wall Street sees EPS up 36.3% to $3.38 on revenue of $9.00B. Options imply a 17.7% swing into September. The 191% winner faces a valuation test after hours.
Applied Materials heads into its earnings report with the stock up about 191% over the past 12 months and down roughly 26% from the June 30 peak of $739.67. Options traders have priced a wide move around the print. Semiconductor stocks have retreated from June highs; investors are reassessing how much of the AI rally is already priced in.
Its deposition and etch tools sit at the core of advanced chipmaking, layering ultra-thin materials onto silicon wafers with atomic-scale accuracy. Taiwan Semiconductor Manufacturing, the largest contract chipmaker, reported record July revenue of 467.58 billion New Taiwan dollars, about $14.5 billion, up 37% from a year earlier. Applied Materials is the equipment supplier behind TSMC's output.
Wall Street expects earnings per share of $3.38, up 36.3% from $2.48, and revenue of $9.00 billion, a 23.3% gain, according to Zacks Investment Research. Applied Materials has topped estimates in recent quarters; last quarter's 6.7% surprise ran slightly above its historical average of 6.1%.
The analyst calls heading into the print are mixed. Lynx Capital lifted its price target to $650 from $540, saying demand for wafer fabrication equipment is running hotter than the market credits. William Blair started coverage with a Market Perform rating; the firm credited rising AI-related capital expenditures and said the stock has already doubled this year, trading at 29 times projected 2027 earnings. Erste Group's downgrade to Hold rests on expectations that revenue and profit growth will lag the semiconductor sector average by 2026; the firm sees limited upside at current prices.
AlphaScala scores AMAT 60 out of 100, a Moderate rating.
After peaking in late June, the shares dropped to the low $440s. They broke out of a short-term descending channel, then stalled near $555 ahead of the report. Options on the Aug. 14 weekly expiration imply a move of about 7%, or $38, in either direction; the lower bound sits at $511, near the recent relative lows. The Sept. 18 monthly expiry prices a range near 17.7%, about $97; the downside lands close to $450, the same zone where the stock found its recent low.
The report is due after the closing bell.
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