New York, Feb 25, 2026, 6:01 PM EST — After the bell
- Applied Materials finished Wednesday’s session up 4.5%, settling at $394.95.
- Nvidia projected revenue for the current quarter ahead of expectations, adding fuel to the AI-driven tech rally.
- Applied is set to report earnings on May 14.
Applied Materials rallied 4.5% to finish at $394.95 on Wednesday, notching a fresh 52-week high as semiconductor equipment names kept climbing. Volume came in above the 50-day average, according to MarketWatch data.
Why now? Investors are weighing just how much of the AI-driven data center surge will fuel demand for new chip fabs—and for equipment from companies like Applied. Nvidia’s blowout numbers gave U.S. stocks a boost: the Nasdaq gained 1.3%, while the S&P 500 advanced 0.81%.
Memory supply is once again looking tight. SK Hynix is committing 21.6 trillion won ($15.07 billion) toward new semiconductor plants in South Korea by 2030, while Samsung pointed to higher memory chip costs as the reason for raising prices on certain Galaxy S26 models in major markets.
Applied and its rivals tend to signal where capex—spending by chipmakers on factories and equipment—is headed. Lam Research picked up 2.14%, while KLA added 2.66% on Wednesday.
Applied has drawn attention after projecting second-quarter revenue of around $7.65 billion, give or take $500 million, beating Wall Street’s expectations earlier this month. CEO Gary Dickerson, speaking after results, cited “accelerated investments in AI computing” along with demand for high-bandwidth memory—stacked DRAM used with AI chips. On that same call, a Stifel analyst highlighted memory as the main growth lever in the near term. Reuters
The company’s name surfaced in policy circles outside Wall Street too. Speaking at an industry summit in India, Applied COO Radhika Viswanathan pointed out the country’s strengths in chip design but flagged gaps on the manufacturing and equipment side. “What we are missing is the middle,” she said. The Economic Times
Insiders were unloading as the stock climbed. Director Judy Bruner disclosed the sale of 3,969 shares on Feb. 23, according to a Form 4, with trade prices ranging from $376 to $378 apiece—shares held via a family trust.
A day after the initial disclosure, Adam Sanders, who serves as corporate controller and chief accounting officer, unloaded 534 shares at $379.16 apiece, according to the Form 4. The filing also lists restricted stock units still in his portfolio, with vesting periods stretching from April 2026 out to January 2030.
ASML highlighted AI demand as a major growth engine in its 2025 annual report, moving away from previous notes of caution about the sector’s volatility. The company remains the leading provider of lithography machines crucial for chip manufacturing.
Export controls are still a looming issue for U.S. chip-equipment firms, and stricter rules could directly affect demand and shipments. Applied Materials will pay $252 million to resolve U.S. allegations over unauthorized exports of chipmaking gear, according to the Commerce Department.
Traders are now eyeing the chip equipment sector for any momentum, with Wall Street parsing Nvidia’s guidance for clues on upcoming AI-related spending. Looking ahead, Applied has its next scheduled catalyst on May 14: earnings and a conference call.
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