New York, Feb 15, 2026, 10:32 EST — Market closed
- Applied Materials shares finished Friday up roughly 8%, lifted by a strong quarterly outlook.
- Traders juggle robust demand for AI and memory tools with the ongoing risks tied to export-control compliance.
- U.S. markets remain closed Monday, putting attention on Tuesday’s opening bell and the upcoming release of Fed minutes later in the week.
Applied Materials jumped 8.0% to close at $354.91 on Friday, after the chip equipment maker issued a second-quarter outlook that topped analyst forecasts. The company cited demand for AI chips and a firmer memory market. Applied Materials expects revenue around $7.65 billion, give or take $500 million, and adjusted earnings of $2.64 per share, with a 20-cent margin either way. (Reuters)
U.S. markets are shut until Monday’s holiday wraps, so the next session will test if the move sticks as slim post-earnings trades collide with wider risk-taking.
Why it matters now: Applied serves as a key indicator for capital investment in wafer-fab equipment — those expensive machines chipmakers rely on to scale or modernize their plants. When Applied signals a steady outlook, peers often move along with it, since customer spending usually runs in cycles.
Equipment linked to advanced packaging and high-bandwidth memory—now a bottleneck for AI servers—shows the most pronounced read-through. When there’s even a suggestion of faster spending here, semicap valuations often react immediately.
Applied posted quarterly revenue of $7.01 billion and adjusted earnings of $2.38 a share after the bell Thursday, both topping analyst forecasts. Shares jumped more than 12% in late trading. CEO Gary Dickerson pointed to “accelerated investments in AI computing” as a key driver behind stronger demand for top-tier chips and the equipment required to manufacture them. (Reuters)
Another persistent headache: export controls. Applied has agreed to a $252.5 million settlement with the U.S. Commerce Department’s Bureau of Industry and Security over allegations involving shipments to China between November 2020 and July 2022. The Justice Department and SEC have wrapped up their own related investigations without taking further action. (SEC)
At least one firm took a more optimistic tack after the report. Summit Insights’ Kinngai Chan bumped Applied up to “buy,” citing likely higher spending across logic/foundry and DRAM in 2026, Investing.com reported. (Investing.com)
But here’s the risk: Should memory prices lose steam, or if major chipmakers hit the brakes on factory expansions following the AI order boom, demand for equipment could quickly weaken. On top of that, expenses tied to export-control compliance—and the threat of broader restrictions—may hold back shipments and cloud forecasts.
The holiday-shortened week starts off with the NYSE shuttered on Monday in observance of Washington’s Birthday. Trading will pick back up on Tuesday. (New York Stock Exchange)
Looking past the opening bell, traders have their eyes on Wednesday’s Fed minutes from the late-January meeting—a release that’s been known to move bond yields and rattle high-multiple tech and chip stocks. (federalreserve.gov)
