{"slug": "applied-materials-surges-15-but-remains-30-below-highs-as-ai-chip-demand-fuels", "title": "Applied Materials surges 15% but remains 30% below highs as AI chip demand fuels semiconductor rally", "summary": "Applied Materials Inc. surged 15% in a single trading session but remains more than 30% below its previous highs, driven by AI chip demand. The semiconductor equipment maker posted record revenue of $7.91 billion for Q2 FY2026, an 11% year-over-year increase, and non-GAAP EPS of $2.86, up 20%. Analysts expect EPS of $3.38 for fiscal Q3 2026, with earnings scheduled for August 13.", "body_md": "Via foreignpolicyjournal.com\n\n# Applied Materials surges 15% but remains 30% below highs as AI chip demand fuels semiconductor rally\n\nThe semiconductor equipment giant posted record revenue of $7.91B last quarter, and its upcoming earnings report could signal broader implications for AI and crypto mining hardware.\n\nApplied Materials, the company that essentially builds the machines that build the chips that power everything from AI data centers to crypto mining rigs, jumped 15% in a single trading session. And it’s still more than 30% below its previous highs.\n\nThe semiconductor equipment maker is scheduled to report fiscal Q3 2026 earnings on August 13, with analysts expecting earnings per share of $3.38.\n\n## Record revenue and an AI-fueled tailwind\n\nThe company posted record revenue of $7.91 billion for Q2 FY2026, a figure reported on May 14 that represented an 11% increase year-over-year.\n\nNon-GAAP earnings per share came in at $2.86, up 20% compared to the same period a year earlier.\n\nThe driving force behind all of this is AI. Specifically, the explosive demand for semiconductor equipment used in manufacturing AI chips, DRAM, and advanced packaging technologies. Applied Materials raised its full-year outlook on the back of this demand.\n\nApplied Materials doesn’t make the chips themselves. It makes the equipment that chipmakers use to fabricate those chips. The company has been identified among the top semiconductor names expected to lead what some analysts are calling a multi-trillion-dollar equipment and chip rally through 2026. Its main competitor in this space, Lam Research, is riding a similar wave, but Applied Materials’ breadth across logic, memory, and packaging gives it a diversified edge.\n\n## Why a 30% discount to highs matters\n\nThat AMAT remains more than 30% below its previous high watermark tells you something important. The stock got crushed during the broader semiconductor selloff earlier this year, and despite this bounce, investors haven’t fully bought back in.\n\nIf Applied Materials delivers another beat-and-raise quarter, with EPS clearing the $3.38 consensus, the stock could have significant room to run before it even approaches its old highs.\n\n## The crypto hardware connection\n\nApplied Materials doesn’t have a token, doesn’t operate on any blockchain, and isn’t part of the crypto ecosystem in any direct sense. But the semiconductor supply chain it anchors has real implications for crypto mining and blockchain infrastructure.\n\nEvery Bitcoin miner, every ASIC chip, every GPU used for proof-of-work or AI-adjacent crypto applications depends on the same fabrication ecosystem that Applied Materials equips. When semiconductor manufacturing capacity expands and chip fabrication technology advances, the downstream effects ripple into mining hardware availability, cost, and efficiency.\n\nFor crypto-focused investors watching traditional markets, the key metric to track on August 13 won’t just be whether AMAT beats on EPS. It will be the company’s commentary on advanced packaging demand and DRAM capacity expansion, both of which directly influence the semiconductor supply dynamics that determine mining hardware roadmaps.\n\n**Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/applied-materials-surges-15-but-remains-30-below-highs-as-ai-chip-demand-fuels", "canonical_source": "https://cryptobriefing.com/applied-materials-surges-ai-chip-demand/", "published_at": "2026-08-01 16:33:20+00:00", "updated_at": "2026-08-01 16:37:13.425340+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips"], "entities": ["Applied Materials Inc.", "Lam Research", "Bitcoin"], "alternates": {"html": "https://wpnews.pro/news/applied-materials-surges-15-but-remains-30-below-highs-as-ai-chip-demand-fuels", "markdown": "https://wpnews.pro/news/applied-materials-surges-15-but-remains-30-below-highs-as-ai-chip-demand-fuels.md", "text": "https://wpnews.pro/news/applied-materials-surges-15-but-remains-30-below-highs-as-ai-chip-demand-fuels.txt", "jsonld": "https://wpnews.pro/news/applied-materials-surges-15-but-remains-30-below-highs-as-ai-chip-demand-fuels.jsonld"}}