New York, February 12, 2026, 18:49 EST — After-hours
Shares of Applied Materials (AMAT.O) shot up 13.3% to $371.97 in after-hours action this day, bouncing back from a 3.4% drop at the close, where the stock settled at $328.39. The chip equipment maker outpaced Wall Street estimates for the quarter and delivered a forecast that landed ahead of expectations. Figures are from Public market data. 1
The report drops as chip stocks navigate a tricky patch, with investors working to gauge whether the current supply squeeze signals just a blip or points to a lasting surge in AI-driven spending.
Applied shows its hand early this quarter, becoming one of the first major U.S. chip-tool names to put figures to that narrative. Its outlook tends to ripple across its peers, all of whom are vying for slices of the same customer spending on fab construction and equipment updates.
Applied is projecting second-quarter revenue around $7.65 billion, give or take $500 million, beating the $7.01 billion consensus, with adjusted earnings expected at roughly $2.64 per share, plus or minus 20 cents—also above the $2.28 estimate, according to Reuters. CEO Gary Dickerson credited “the acceleration of industry investments in AI computing” for the strong results, calling out high-bandwidth memory and advanced packaging as key areas. “Memory and logic-foundry capex growth are two sides of the same coin,” said Timm Schulze-Melander at Rothschild & Co. Redburn. Shares of Lam Research and KLA both added almost 3% in after-hours trading. 2
Applied posted revenue of $7.01 billion for the quarter ended Jan. 25, with adjusted earnings coming in at $2.38 per share. GAAP earnings landed at $2.54. CEO Gary Dickerson pointed to stronger demand for “higher performance and more energy-efficient chips” as a driver for both leading-edge logic and memory. CFO Brice Hill noted the company has “nearly doubled” its system manufacturing capacity and increased inventories to keep pace. Operating cash flow reached $1.69 billion; $702 million went back to shareholders through buybacks and dividends. 3
Optimism around the stock came after new details surfaced in a long-running export-controls probe. According to the U.S. Commerce Department, Applied shipped ion implanters—essential chipmaking machinery—to China’s Semiconductor Manufacturing International Corp 56 times during 2021 and 2022. The equipment, worth roughly $126 million, was exported without authorization. Applied will pay $252 million, which the department described as the largest penalty permitted. 4
Applied disclosed in an 8-K that both the Justice Department and SEC have wrapped up their probes—no enforcement action. As for the Commerce Department’s Bureau of Industry and Security, Applied agreed to a settlement on Feb. 11: a $252.5 million one-off payment, plus internal audits and compliance training. 5
Applied said the agreement settles BIS claims over shipments to China from Nov. 2020 through July 2022 that didn’t meet U.S. export requirements. The company pointed to what it called a misunderstanding of the rules. With the case now put to bed, Applied says it’s turning its attention back to its technology roadmap. 6
In a separate announcement, Applied said Samsung Electronics is set to join its $5 billion EPIC Center in Silicon Valley. The research hub, designed to accelerate the move from R&D to manufacturing, is on track for a spring 2026 launch, according to Applied. “The global buildout of AI infrastructure is driving unprecedented demand for energy-efficient chips,” CEO Gary Dickerson said. Samsung Vice Chairman and CEO Young Hyun Jun added that both firms will ramp up their technical collaboration at the facility. 7
Even so, that after-hours jump now puts Friday in focus. If memory prices slip or chipmakers pull back on capital spending, tool demand could fade fast. China-related sales are still at the mercy of Washington’s export controls. And with lighter volumes after the bell, those initial moves don’t always stick.
Now, investors are waiting to see just how quickly orders for high-bandwidth memory and advanced packaging will pick up. Applied’s head of investor relations said on the earnings call that the company is planning new product briefings on Feb. 24, timed for the SPIE Lithography and Patterning conference in San Jose. 8
