NEW YORK, August 13, 2026, 07:22 EDT
- The PHLX Semiconductor Index rose 3% Wednesday, with 23 of 30 members gaining.
- Nasdaq-100 futures were nearly flat before the 08:30 EDT producer-price report.
- Applied Materials reports after Thursday’s close, testing the equipment-led recovery.
U.S. chip shares enter Thursday’s premarket with broader momentum than their headline gain suggests. The PHLX Semiconductor Index advanced 3% Wednesday. Twenty-three of its 30 members rose, lifting the benchmark to a four-week high.
That breadth matters. It shows investors moved beyond a few artificial-intelligence leaders after a sharp summer retreat. Yet the index remains well below its June peak, based on a preliminary calculation.
| PHLX chip-index signal | Latest reading | Investor meaning |
|---|---|---|
| Wednesday move | +3.0% | Strong one-day rebound |
| Advancing members | 23 of 30, or 76.7% | Broad participation |
| Distance recovered from selloff | 48% | Almost half the loss regained |
| Late-June to late-July drawdown | 29% | Correction remains material |
| Implied gap from record | About 15.1% | Preliminary derived estimate |
The next move is less certain. Nasdaq-100 futures added just 0.02% at 05:47 EDT. S&P 500 futures gained 0.16%, while Dow futures rose 0.24%.
| Premarket indicator | Reading | Signal |
|---|---|---|
| Dow futures | +0.24% | Broad-market support |
| S&P 500 futures | +0.16% | Modest risk appetite |
| Nasdaq-100 futures | +0.02% | Tech momentum paused |
| Brent crude | -1.9% | Less near-term inflation pressure |
| Fed hold probability | 66% | Rates still constrain valuation |
The 08:30 EDT producer-price report is Thursday’s first test. June headline PPI fell 0.3% from May but rose 5.5% yearly. The narrower measure excluding food, energy and trade services increased 5.1% from a year earlier.
Consensus expects July headline inflation to ease to 4.9% annually. A softer result could lower discount-rate pressure on long-duration chip shares. An upside surprise would challenge the rebound quickly.
Applied Materials NASDAQ:AMAT provides the second test after Thursday’s close. Wall Street expects quarterly revenue of $8.99 billion and adjusted earnings of $3.40 per share. The company has already forecast roughly 30% calendar-2026 growth in its semiconductor-equipment business.
| Applied Materials period | Revenue | Adjusted EPS | Sequential change |
|---|---|---|---|
| Fiscal Q1 2026 actual | $7.01 billion | $2.38 | Base period |
| Fiscal Q2 2026 actual | $7.91 billion | $2.86 | Revenue +12.8%; EPS +20.2% |
| Fiscal Q3 2026 consensus | $8.99 billion | $3.40 | Revenue +13.7%; EPS +18.9% |
Chief Executive Gary Dickerson said the AI buildout was driving demand for leading-edge logic, DRAM and advanced packaging. Thursday’s numbers will show whether that demand is reaching tools fast enough.
The wider earnings signal remains constructive. Jefferies strategist Mohit Kumar said AI-infrastructure results showed no sign of slower capital spending. His team remains overweight the sector.
| Company | Analyst recommendation mix | Average target | Implied upside |
|---|---|---|---|
| Applied Materials NASDAQ:AMAT | 22 Buy, 4 Hold, 0 Sell | $618.50 | 23.3% |
| Broadcom NASDAQ:AVGO | 27 Buy, 4 Hold | $465.55 | 16.1% |
| Micron Technology NASDAQ:MU | 25 Buy, 3 Hold | $543.20 | 21.2% |
The recommendations favor continued AI spending, but they do not remove execution risk. Mizuho’s preferred chip names include Nvidia NASDAQ:NVDA and Broadcom. It also rates Lam Research NASDAQ:LRCX Outperform, citing AI infrastructure and memory demand.
Risks: Hot producer inflation could lift bond yields and compress chip valuations. Applied Materials may also expose order timing, China restrictions or weaker non-AI demand. The index’s remaining gap from its record leaves little tolerance for disappointment.
The investor signal is straightforward. Wednesday’s rally had breadth, but Thursday must add evidence. PPI tests the valuation case first. Applied Materials then tests the earnings case.
Related articles: NASDAQ:AMAT
