Applied Materials closed Friday's session with a significant 6.1% gain, reaching $322.51, as semiconductor equities staged a notable recovery. The stock, however, remains approximately 6% below its 52-week high. Trading volume for the session exceeded its 50-day average.
Focus Shifts to Upcoming Catalysts
With markets closed for the weekend, investor attention is turning to near-term catalysts. Applied Materials, a cornerstone of the chip manufacturing supply chain, is scheduled to report its fiscal first-quarter 2026 results after the market closes on Thursday, February 12. The earnings call is set for 4:30 p.m. ET.
The broader chip equipment sector participated in Friday's rally, with Lam Research advancing 8.2%, KLA gaining 8.4%, and ASML's U.S.-listed shares rising 4.6%. Nvidia also contributed to the sector's strength with a 7.9% jump.
Earnings Outlook and Macro Risks
In November, Applied Materials provided guidance for the current quarter, forecasting revenue of approximately $6.85 billion, plus or minus $500 million, and adjusted earnings per share of around $2.18, with a potential 20-cent variance. CFO Brice Hill indicated at the time that customer signals suggested an acceleration in wafer-fab equipment spending in the second half of calendar 2026.
Key macro data also looms, with the U.S. January jobs report due Wednesday, February 11, and January Consumer Price Index (CPI) inflation figures scheduled for release on Friday, February 13. Both reports are set for 8:30 a.m. ET.
Persistent challenges include U.S. export controls and the company's exposure to the Chinese market. Applied Materials has previously cited headwinds from stricter export rules, with reports indicating an expected $600 million revenue impact for fiscal 2026 following expanded U.S. restrictions.
The upcoming earnings call will be closely watched for management's commentary on balancing robust AI-driven demand against the ongoing pressures from geopolitical trade restrictions.
