New York, February 14, 2026, 12:16 (EST) — Market is shut
Shares of Applied Materials (AMAT.O) surged roughly 8% to finish at $354.91 on Friday, as the chip equipment giant projected second-quarter sales and earnings ahead of analyst estimates, citing momentum from AI computing demand and tighter memory supplies. U.S. exchanges are shut over the weekend, so investors will get their next shot at the stock once markets open again. 1
To many investors, chip-gear stocks offer a more direct line into the AI expansion than chip designers—orders for equipment tend to come in sooner and stick around longer. “AI infrastructure demand is immense, and supply is scarce,” Morningstar’s William Kerwin said. 2
This time, the break stretches out. The New York Stock Exchange will shut down Monday in observance of Washington’s Birthday, with trading set to pick back up Tuesday. 3
Applied reported fiscal first-quarter revenue of $7.01 billion, a 2% dip from the same period last year. Non-GAAP earnings per share landed at $2.38; certain items weren’t factored into that figure. Looking ahead, the company put its second-quarter revenue forecast at $7.65 billion, give or take $500 million, and expects non-GAAP EPS to come in around $2.64, with a 20-cent swing either way. CEO Gary Dickerson pointed to “the acceleration of industry investments in AI computing” as a driver. CFO Brice Hill noted Applied has “nearly doubled our system manufacturing capability.” 4
Wall Street was looking for revenue of about $7.01 billion and adjusted earnings per share of $2.28 this quarter, according to LSEG. Shares of Applied surged more than 12% in after-hours trading on Thursday. The upbeat outlook spilled over—Lam Research (LRCX.O) and KLA (KLAC.O) each climbed close to 3% postmarket. “Memory and logic-foundry capex growth are two sides of the same coin,” said Timm Schulze-Melander of Rothschild & Co. Redburn, adding that for now, memory leads the way in capital spending. 5
During the earnings call, Hill told analysts he sees margins moving in a positive direction as the mix returns to typical levels. Management pointed to high-bandwidth memory (HBM)—a fast, stacked version of DRAM used in AI servers—as a key area where demand remains strong. 6
Still, regulators are in the picture. The U.S. Commerce Department this week said Applied reached a $252 million settlement after illegally shipping chipmaking tools to China’s SMIC. The company added that related probes by the Justice Department and SEC have wrapped up with no action taken. 7
Traders’ focus now tilts between chip capex and the macro backdrop. Coming up: the Fed drops minutes from its Jan. 27-28 gathering, set for 2 p.m. ET on Wednesday, Feb. 18. That release? It can jolt rates and hit tech valuations in a hurry. 8
