New York, Feb 16, 2026, 10:33 ET — Market closed
- Monday sees U.S. markets shut; trading resumes Tuesday.
- Applied Materials shares jumped previously, after the company delivered a bullish quarterly forecast, boosted by stronger demand for AI-related chip investments.
- Traders are trying to balance the demand narrative with concerns over export-control and compliance risks.
Applied Materials is set to reclaim the spotlight Tuesday, with Wall Street eyeing the chip-equipment giant after its steep rally following earnings. The long Presidents Day weekend halts any fresh price moves; U.S. stock and bond markets remain shut Monday. (MarketWatch)
Why now? Investors often look to chipmaking-tool makers as a gauge for whether AI-centric data center spending is actually accelerating the next capex cycle, or just rearranging the timeline. In Applied’s case, the main issue is if its upbeat near-term guidance can withstand stricter export regulations and increasingly choosy customers.
Applied Materials (AMAT) finished Friday’s session with a roughly 8% gain, closing at $354.91, market data show.
The company put out a second-quarter forecast that beat Wall Street’s expectations, crediting strong demand from AI processors and a supply-constrained memory market. Revenue is projected at roughly $7.65 billion, give or take $500 million, and adjusted earnings are seen landing near $2.64 per share, with a 20-cent leeway on either side. (Reuters)
Applied’s surge sent rivals in chip equipment higher too, with Wall Street analysts scrambling to boost their targets after the outlook hit, according to Reuters. Traders are zeroing in on the company’s talk on wafer-fab tools—key machines for chip production—and advanced packaging, seeing those remarks as a fresh indicator for 2026 capital spending. (Reuters)
In the company’s earnings release, Chief Executive Gary Dickerson pointed to a quarter “fueled by the acceleration of industry investments in AI computing.” (Applied Materials)
But there’s more for the stock to digest. The U.S. Commerce Department’s Bureau of Industry and Security slapped Applied with a $252 million penalty over illegal exports of semiconductor manufacturing equipment. (bis.gov)
The compliance hangover isn’t gone—sure, the settlement takes one cloud off the table, but questions linger over just how much runway U.S. toolmakers have in China as Washington tweaks its rules. In this case, Applied also noted that the Justice Department and SEC had wrapped up their probes with no further steps, Reuters reported. (Reuters)
Summit Insights’ Kinngai Chan bumped Applied up to “buy” this Friday, pointing to likely gains from logic/foundry and DRAM spending in 2026 as tech shifts expand past just AI. (Investing.com)
Tuesday brings a test for Applied—traders want to see if the post-earnings move sticks. Eyes also run to Lam Research and KLA, to see if they follow suit or slip, as the market reworks its stance on rates and growth in the first session after the holiday.
Applied’s next earnings drop lands on May 14, 2026, but don’t overlook what could unfold at Tuesday’s open. (Investing.com)
