Applied Materials’ $1.13B Surge (76th) Sparks Legal Clash with Chinese Rival

On August 13, 2025, Applied Materials (AMAT) rose 0.84% to close with a trading volume of $1.13 billion, ranking 76th in market activity. The stock’s performance coincided with a legal challenge from Beijing E-Town Semiconductor Technologies, a state-backed Chinese firm alleging trade secret infringement. Beijing E-Town claims Applied Materials improperly utilized its proprietary plasma source and wafer surface treatment technologies, which were allegedly disclosed through a patent application filed in China. The lawsuit, submitted to the Beijing Intellectual Property Court, seeks $13.94 million in compensation and accuses Applied Materials of violating China’s fair competition law by allegedly hiring former Mattson Technology employees who were involved in the disputed patent filing.

The legal dispute adds complexity to an already contentious corporate history between the parties. In 2022, Applied Materials had sued Mattson Technology for alleged trade secret theft, while Mattson later countersued Applied Materials with similar allegations. The current litigation underscores ongoing tensions in the semiconductor equipment sector over intellectual property rights, particularly as companies navigate cross-border technology transfers and patent strategies. Analysts have noted that such legal battles can create short-term volatility for firms with significant R&D investments, though the long-term impact on AMAT remains contingent on the case’s resolution.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to the present has yielded a 20.15% gain, demonstrating the potential of high-volume stocks to outperform passive benchmarks despite market fluctuations. Applied Materials’ inclusion in this group highlights its role as a key player in the semiconductor equipment industry, though its recent legal exposure may introduce additional risk factors for investors.