Applied Materials: A Strong Bet on the AI-Driven Semiconductor Cycle

Applied Materials, Inc. (AMAT) reported Q1 2026 results with $7.01 billion in revenue, exceeding consensus by 2%, and non-GAAP EPS of $2.38, beating estimates by 7.7%. Semiconductor Systems revenue hit a record $1.75 billion, driven by high-bandwidth memory (HBM) stacking and advanced deposition, bonding, and thinning tools. The company launched three new systems for 2nm Gate-All-Around transistors and advanced wiring, reinforcing Applied's leadership in deposition, etch, and packaging. The Q2 guide projects $7.65 billion in revenue, roughly 9% above Street expectations, with non-GAAP EPS of $2.64.