NASDAQInformation TechnologySemiconductor Equipment & MaterialsSnapshot 2026-07-08
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Applied Materials aims to grow its semiconductor equipment business by 20% in 2026. Recent quarters show revenue growth from $6.78B in 2024-Q3 to $7.91B in 2026-Q2. Profit beats continue with EPS rising to $2.86 in Q2 FY2026. The company invests $500 million to expand manufacturing and R&D capacity.
The stock is selling off sharply, down 23% from highs. High expectations create short-term risk for the 20% growth target. Rising trade and cost pressures could hurt margins and growth. Workforce reductions may signal challenges ahead.
Analysts expect about 32.5% revenue growth next year, pricing in strong growth. Our fair value is about 52% below the Street median, suggesting the market may be overly optimistic. We see risk in sustaining the high growth and margin targets.
Breaks if: Investment plans materially reduced or delayed in 2026
Breaks if: EPS guidance falls below $3.16 next quarter
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY semiconductor equipment revenue growth falls below ~7% in FY26
Applied Materials aims to grow its semiconductor equipment business by 20% in 2026.
Stated in 4 of last 4 quarters. Revenue grew from $6.78B in 2024-Q3 to $7.91B in 2026-Q2, indicating progress towards the 20% growth target. The trajectory is delivering against management's stated goal.
“CEO: 'We expect to grow our semiconductor equipment business over 20 percent this calendar year.'”
“CEO: 'We are well positioned at the highest value technology inflections in the fastest growing areas of the market.'”
“CEO: 'We are on track to deliver our sixth consecutive year of revenue growth in fiscal 2025.'”
“CEO: 'High-performance, energy-efficient AI computing remains the dominant driver of semiconductor innovation.'”
