New York, February 21, 2026, 13:23 EST — The market is closed.
Applied Materials (AMAT.O) disclosed in its latest quarterly filing that both the U.S. Justice Department and the SEC have ended their probes following subpoenas over export-controls compliance—no enforcement action from either. The same document details a settlement, reached Feb. 11, with the Commerce Department’s Bureau of Industry and Security; the deal includes a $253 million payment and a suspended “denial order” that could block exports if terms aren’t met, but will be waived after three years if conditions hold. China was responsible for $2.095 billion, or 30%, of the company’s quarterly sales. Applied also noted it still has about $13.6 billion left for buybacks under its repurchase authorization. (SEC)
Timing’s key here. Export controls have been a persistent headline risk for U.S. chip tool stocks, and now the legal update drops just as the stock heads for new highs heading into the weekend.
U.S. markets are closed until Monday, leaving traders to wonder: will these fresh disclosures be enough to keep things moving, or is the rally running out of steam without something new?
Applied shares closed Friday at $375.38, up 1.4%, just shy of their 52-week peak at $376.32. Volume came in a bit above the 50-day average. The S&P 500 rose 0.7%, while the Dow picked up 0.5%. (MarketWatch)
Applied has surged alongside a rally in semiconductor equipment stocks, with investors betting on big outlays for advanced logic, high-bandwidth memory, and packaging, all connected to AI computing.
Applied posted fiscal first-quarter revenue of $7.01 billion earlier this month, with non-GAAP EPS coming in at $2.38. For the current quarter, the company is guiding to revenue of roughly $7.65 billion, give or take $500 million. CEO Gary Dickerson credited “the acceleration of industry investments in AI computing” for the performance. CFO Brice Hill highlighted expanded capacity, noting Applied has “nearly doubled our system manufacturing capability” in recent years. (GlobeNewswire)
The update also highlighted fresh tools targeting gate-all-around transistors, as well as new materials engineering tech for wiring. The company’s moving in tighter on partnerships and joint development with its customers.
The export-controls situation defies clean resolution. Even with a denial order paused, it lingers in the background. Licensing out of Washington, meanwhile, can shift on a dime, with decisions zigzagging across customers and products.
That’s left China exposure—and all the compliance fine print—still woven into daily trading for AMAT, despite the probes having wrapped up.
Investors are eyeing upcoming commentary as Applied management takes the stage at investor events. Semiconductor Products Group President Prabu Raja is set to present at Morgan Stanley’s Technology, Media & Telecom Conference on March 2. Later, CFO Brice Hill follows at Cantor Fitzgerald’s Global Technology & Industrial Growth Conference on March 10. (nasdaq.com)
