|
or submit your request to: 24025 Park Sorrento, Suite 210, Calabasas, CA 91302
How to Read Applied Materials Earnings: What Signals Move the Stock?
Reported by Sam Quirke. Date Posted: 2/12/2026.
At a Glance
- Applied Materials is up 26% year to date and roughly 170% since last April, and has been consistently printing new highs since November.
- This week’s earnings are highly anticipated, with expectations elevated amid a broader shift in tech sentiment.
- If the company can deliver, the rally should continue, but if it stumbles, any dip would likely be a buying opportunity.
Having already become one of the year's strongest performers, Applied Materials Inc (NASDAQ: AMAT) now faces a significant test. Shares are up 26% year to date and have rallied roughly 170% since last April, hitting all-time highs on what has felt like a near-weekly basis since November.
The move has been supported by consistent earnings outperformance, solid positioning in semiconductor equipment, and growing confidence on Wall Street in management's ability to execute. But sentiment across tech has shifted in recent weeks, so its fiscal Q1 earnings report will likely be scrutinised more closely than usual.
ALERT: Drop these 5 stocks before the market opens tomorrow! (Ad)
The Wall Street Journal is asking whether a stock market crash is coming. Research from Weiss Ratings suggests the first half of 2026 could be very tough for certain stocks as a radical shift hits the market. Some of America's most popular names could take serious damage. Analysts have identified five stocks you should consider avoiding before this event plays out. If these are in your portfolio, you'll want to review your positions carefully.
See the five stocks to avoid and learn what's driving this shift.Investors have again raised concerns about rising capital expenditures, and company-specific headwinds such as exposure to China have reappeared in the conversation. That makes Applied Materials not only one of the most closely watched stocks this week but likely a hot topic for the rest of the quarter. The central question is whether the gains can continue after the Feb. 12 report and how investors should position themselves for the fallout. Let's take a closer look.
Why the Rally Has Room to Run
Regardless of how the fiscal Q1 report lands, the broader backdrop remains supportive. The global semiconductor market is expanding, driven by AI, high-performance computing and increasing chip complexity. As demand rises, so does the need for advanced manufacturing equipment, placing Applied Materials squarely in the sweet spot of the cycle.
Beyond cyclical demand, there's a structural element at work. As chip fabrication becomes more complex, the recurring service-and-parts side of Applied Materials' business has grown in importance. That recurring revenue adds resilience and margin stability — a dynamic investors have leaned into over the past year.
Recent analyst sentiment reinforces this confidence. Teams at RBC, B. Riley Financial, Citigroup and UBS reiterated Buy ratings in February, with price targets stretching as high as $405. That implies further upside of roughly 20% even after this year's strong run. Notably, those updates arrived in the days before the report, which underscores an unusually high level of analyst confidence in Applied Materials' prospects.
The Bar Is High, But History Favors the Bulls
With expectations elevated heading into Thursday's report, Morgan Stanley has indicated it expects the company to surpass estimates. While bullishness is encouraging, it also raises the stakes.
When a stock has rallied this aggressively and trades near highs, even a solid report can trigger profit-taking if the numbers and forward guidance aren't spectacular. Combine that with the broader shift in sentiment across tech stocks, and volatility is likely to increase.
That said, Applied Materials has built a track record of overdelivering, and consistent execution has been the foundation of the rally. Even if earnings merely meet expectations or guidance is slightly soft, it's hard to argue the long-term thesis breaks. A knee-jerk selloff would more likely be viewed as a buying opportunity than a sign the story is over.
How to Play the Fallout
The setup into earnings — and beyond — is fairly straightforward. If Applied Materials posts another strong beat and maintains a confident outlook, the stock should be able to build on its multi-month rally. Fresh highs would likely attract momentum buyers and reinforce its leadership status in the market.
If the report disappoints and shares pull back sharply, investors should avoid panicking and watch closely. With structural demand intact and analyst support in place, an earnings-driven dip could present a compelling entry point. A reset in expectations that isn't accompanied by a material change in long-term guidance may simply create a better risk/reward setup. Either way, AMAT is a stock to keep on your radar.
This email is a sponsored message sent on behalf of Goldco Direct, LLC, a third-party advertiser of MarketBeat. Why did I get this email content?.
If you have questions about your account, don't hesitate to email our South Dakota based support team at contact@marketbeat.com.
If you would no longer like to receive promotional emails from MarketBeat advertisers, you can unsubscribe or manage your mailing preferences here.
Copyright 2006-2026 MarketBeat Media, LLC. All rights protected.
345 North Reid Place, Sixth Floor, Sioux Falls, SD 57103-7078. United States..
Comments
Post a Comment