Shares surged after Lam Research posted record results, lifting chip-equipment stocks before AMAT’s Aug. 13 fiscal Q3 release.
Applied Materials (NASDAQ: AMAT) climbed 15% on July 30 to close at $501.77, extending gains the following session, though shares remain over 30% below their 52-week high of $739.67. The rally followed Lam Research’s record June-quarter revenue of $8.1 billion and upbeat September-quarter guidance, sparking broad gains in chip-equipment stocks.
In May, Applied Materials reported fiscal Q2 revenue of $7.91 billion, up 11% year-over-year, with adjusted earnings per share rising 20% to $2.86. Management projected Q3 revenue of $8.95 billion, plus or minus $500 million, which would mark another record. The company also raised its quarterly dividend 15% to $0.53 per share.
Investors will scrutinize AMAT’s Aug. 13 earnings for confirmation of momentum, as the stock has more than tripled from its 52-week low of $154.47 but still trades below peak levels.