Key facts
- Applied Materials reported record revenue of $9.12 billion for the May-July quarter.
- The company's earnings were driven by strong demand for semiconductors used in AI infrastructure.
- Applied Materials anticipates its revenue from China will increase in 2026, despite U.S. export restrictions.
- The company forecast fourth-quarter revenue of approximately $10.25 billion.
- Applied Materials shares fell nearly 5% in premarket trading as investors worried about competition.
Applied Materials reported record revenue of $9.12 billion for the May-July quarter, driven by strong demand for semiconductors used in AI infrastructure. The U.S. chip equipment maker also projects that its revenue from China will increase in 2026, despite existing U.S. export restrictions. However, the company's shares fell nearly 5% in premarket trading as investors expressed concerns about intensifying competition and sought clearer signals that Applied Materials' growth is outpacing rivals like ASML and Lam Research. The company forecast fourth-quarter revenue of about $10.25 billion, above consensus estimates, but its stock reaction highlighted a low tolerance for any perceived lag behind peers after a significant rally this year.