Applied Materials stock rose about 15% on July 30 after rival chip-equipment maker Lam Research posted record quarterly results, even though Applied Materials released no news of its own. The stock remains more than 30% below its 52-week high, and its own fiscal third-quarter earnings arrive on Aug. 13, when analysts expect earnings per share of $3.38.
Applied Materials climbed about 15% on Thursday, July 30, closing at $501.77, even though the company had no news of its own that day. The stock is still more than 30% below its 52-week high of $739.67, and its next chance to justify the move comes on Aug. 13, when it reports fiscal third-quarter results.
A peer's earnings drove the rally
The catalyst was Lam Research, not Applied Materials. Lam, which sells chip-manufacturing equipment into many of the same factories, reported record June-quarter revenue, operating margin, and earnings per share on Wednesday and guided for about $8.1 billion in September-quarter revenue. Investors marked up equipment stocks across the board as a result, and Applied Materials, already up more than 200% from its 52-week low of $154.47, moved with them.
Applied's own numbers back the optimism
In May, Applied Materials reported record fiscal second-quarter results, with revenue rising 11% year over year to $7.91 billion. Non-GAAP earnings per share grew 20% to $2.86. Management guided for fiscal third-quarter revenue of about $8.95 billion, plus or minus $500 million, which would be another record. The company also raised its quarterly dividend 15% this year, to $0.53 per share, its ninth straight annual increase.
CEO Gary Dickerson said the company expects its semiconductor equipment business to grow more than 30% in calendar 2026. He said in the May earnings release that the AI build-out, combined with the company's positions in leading-edge logic, DRAM, and advanced packaging, provides "an exceptionally strong foundation for sustained, multi-year revenue and profit growth."
What the Aug. 13 report needs to show
Analysts expect earnings per share of $3.38 when Applied Materials reports fiscal third-quarter results. The report needs to deliver on the roughly $9 billion revenue guide. It also needs to show demand strong enough to back the 30% growth call for the calendar year.
Until then, Thursday's gain is a bet on results Applied Materials hasn't reported yet.
Sources: The Motley Fool, Crypto Briefing
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