Applied Materials surges 15% but remains 30% below highs as AI chip demand fuels semiconductor rally

Applied Materials, the company that essentially builds the machines that build the chips that power everything from AI data centers to crypto mining rigs, jumped 15% in a single trading session. And it’s still more than 30% below its previous highs. The semiconductor equipment maker is scheduled to report fiscal Q3 2026 earnings on August 13, with analysts expecting earnings per share of $3.38. Record revenue and an AI-fueled tailwind The company posted record revenue of $7.91 billion for Q2 FY2026, a figure reported on May 14 that represented an 11% increase year-over-year. Non-GAAP earnings per share came in at $2.86, up 20% compared to the same period a year earlier. The driving force behind all of this is AI. Specifically, the explosive demand for semiconductor equipment used in manufacturing AI chips, DRAM, and advanced packaging technologies. Applied Materials raised its full-year outlook on the back of this demand. Applied Materials doesn’t make the chips themselves. It makes the equipment that chipmakers use to fabricate those chips. The company has been identified among the top semiconductor names expected to lead what some analysts are calling a multi-trillion-dollar equi...