Applied Materials to Report Earnings Next Thursday; Stock Up Over 100% in 2026
Applied Materials is set to report quarterly earnings next week, with its stock up more than 100% in 2026 and trading about 26% below its record high of $739.67. The earnings release corresponds to an expected price move of roughly $75. Separately, SpaceX and Elon Musk confirmed on August 6 a $16.8 billion investment in a Texas chip plant, Terafab, targeting 1 terawatt of AI computing capacity. As the world's largest wafer fab equipment supplier, Applied Materials benefits from ongoing capacity expansion by TSMC, Intel, and new entrants, supported by government subsidies.
Applied Materials will report its quarterly earnings next week. The company's shares have risen more than 100% in 2026 and are currently about 26% below their all-time high of $739.67.
On August 6, SpaceX and Elon Musk confirmed plans to invest $16.8 billion in building a chip factory, Terafab, in Texas, with the goal of achieving 1 terawatt of AI computing capacity. Applied Materials is the world's largest supplier of wafer fabrication equipment, providing etching, deposition, and testing equipment, which are essential in the chip manufacturing process.
Global semiconductor manufacturing capacity expansion continues. Major players such as TSMC and Intel are increasing capital expenditure, and new entrants like Terafab are also building production lines. Subsidies from the US CHIPS and Science Act, as well as similar support policies in Europe and Japan, are driving wafer fabs to purchase equipment. These government funds flow to equipment suppliers, providing support for orders at related companies.