Applied Materials shares jump 11% after strong Q1 results and upbeat Q2 outlook, driven by AI chip needs. Revenue hit $7.01B, with Q2 expected at $7.65B amid booming demand for memory and advanced tech.
TSMC announces massive $56B spending plan for 2026, signaling confidence in AI boom. Strong earnings and expansion plans boost tech sector optimism.
UBS upgrades Applied Materials to Buy with a new $285 target, citing a bullish outlook for wafer fab equipment spending and rising DRAM-driven demand through 2027.
Applied Materials forecasts reduced China spending in 2026 due to U.S. export restrictions, causing shares to fall 6%. Company expects recovery in second half of 2026.
Applied Materials expects a $600 million revenue loss in fiscal 2026 due to new U.S. rules restricting exports of chip manufacturing machinery to China-based affiliates aimed at preventing circumvention of controls.
Morgan Stanley hiked its 2026 chip equipment sales forecast to +10% (from +5%) because memory markets are improving. They upgraded Applied Materials and Lam Research, but lowered KLA Corp. due to high valuation despite strong growth.
