Applied Materials Surges 20.98% on $1.2B AI-Focused Contract Jumps to 328th in U.S. Volume Rankings

Applied Materials (AAOI) surged 20.98% on October 6, 2025, with a trading volume of $340 million—a 216.06% increase from the previous day—ranking it 328th among U.S. stocks by volume. The sharp rebound followed a strategic shift in its semiconductor equipment division, which announced a $1.2 billion contract with a leading Asian foundry for next-generation deposition tools. Analysts highlighted the deal’s significance as it covers 80% of the client’s 2026-2027 capacity expansion needs, aligning with the industry’s focus on advanced node manufacturing for AI hardware.

Separate reports indicated Applied’s recent supply chain restructuring has reduced production costs by 12% across its wafer etch systems, with immediate delivery terms for key components. The company also confirmed a partnership with a European materials science firm to co-develop carbon-neutral chemical solutions, a move expected to bolster its ESG profile ahead of Q4 investor briefings. These developments contrast with recent sector-wide volatility, as peers like Lam Research faced margin pressures from delayed client capital expenditures.

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