From 24/7 Wall St. · David Moadel · · 1m 20s
Chip Equipment Stocks Rally as Applied Materials Leads
Applied Materials jumps 11% ahead of earnings as chip equipment stocks surge.
In brief
Applied Materials jumps 11% ahead of earnings as chip equipment stocks surge. Applied Materials stock rose 11% to $370.81 before earnings, while Lam Research and ASML also gained, driven by strong AI demand forecasts for 2027. Originally reported by 24/7 Wall St..
Chip Equipment Stocks Rally
Chipmaking equipment stocks are surging as investors return to AI shares after last week's post-midterm selloff.
Applied Materials Leads Rally
Applied Materials stock rose 11% to $370.81 in afternoon trading ahead of its November 12 earnings report.
Earnings Guidance
Applied Materials guided to $10.25 billion revenue and $4.02 non-GAAP EPS for Q4 FY2026, with 87.1% year-over-year growth.
Lam Research Boost
Lam Research stock rose 9% after announcing a $25 billion share repurchase authorization on November 5.
ASML Rises 6%
ASML stock climbed 6% following a full-year 2026 sales outlook increase to €44 billion to €45 billion.
2027 Outlook
Applied Materials forecasts strong growth in 2027 for leading-edge foundry-logic, DRAM, and advanced packaging tools.
Market Multiples
Applied Materials trades at 18x forward earnings, the lowest multiple among the four chip equipment peers.
Risks Ahead
China export controls and clean-room availability could limit Applied Materials' 2027 production capacity.
What matters most
Applied Materials stock rose 11% to $370.81 before earnings, while Lam Research and ASML also gained, driven by strong AI demand forecasts for 2027.
