- The company also forecast earnings per share of about $2.64, significantly higher than street estimates of $2.28.
- Gary Dickerson, President and CEO of the company, said that the strong performance and future outlook are fueled by accelerating investments in AI computing.
- The company’s CFO, Brice Hill, added that Applied Materials expects to grow its semiconductor equipment business by over 20% in the calendar year.
Shares of Applied Materials Inc. (AMAT) rallied nearly 13% on Thursday after the company posted first-quarter (Q1) 2026 earnings results and outlook that beat Wall Street expectations.
Gary Dickerson, President and CEO of the company, said that the strong performance and future outlook are fueled by accelerating investments in artificial intelligence computing.
“The race to build out AI infrastructure is driving unprecedented spending on semiconductors, semiconductor manufacturing capacity and research and development,” Dickerson said in a call with analysts.
He also said that he believes revenues in the global semiconductor industry are poised to hit $1 trillion in 2026, several years ahead of prior predictions. The company’s CFO, Brice Hill, added that Applied Materials expects to grow its semiconductor equipment business by over 20% in the calendar year, signaling that the second half will be higher.
Earnings Snapshot
Although the company’s revenue declined 2% to $7.01 billion in the quarter, it came in higher than analysts’ expectations of $6.88 billion, according to data from Fiscal.ai. Applied Materials also posted earnings per share of $2.38, compared to street expectations of $2.21.
Meanwhile, the largest American supplier of chipmaking gear, forecast revenues for the second-quarter (Q2) at about $7.65 billion, with a margin of $500 million on either side. Analysts had estimated about $7.02 billion on average, as per Fiscal.ai data.
The company also forecast earnings per share of $2.64 with a margin of $0.20 on either side, significantly higher than street estimates of $2.28.
Semiconductor Boost
Management at Applied Materials said that the company’s upbeat outlook is driven primarily by accelerating AI infrastructure investment, which is reshaping semiconductor spending toward leading-edge logic, DRAM (especially high-bandwidth memory), and advanced packaging.
In leading-edge logic, the transition to gate-all-around architectures is expanding its market opportunities. In memory, AI demand is boosting HBM, which requires three to four times more wafer starts per bit than standard DRAM and increasing stack heights. Advanced packaging, particularly HBM and 3D chiplet stacking, is among the company’s fastest-growing segments.
Applied Materials also highlighted its number-one positions in key process technologies and added that it expects new product launches, including e-beam and deposition systems, to contribute meaningfully to growth.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around AMAT shares jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.
One user praised the company’s earnings beat, adding that semiconductors are back.
Another bullish user predicted the company’s shares would rise to $400 soon. Shares of AMAT were trading around $370.89 at the time of writing.
AMAT stock has risen over 81% in the past year.
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