AMAT Q2 Deep Dive: AI Demand and Advanced Packaging Drive Guidance Upside, Market Reacts Cautiously - The Globe and Mail

Applied Materials (AMAT) delivered a strong Q2 2026 performance, with revenue up 24.8% year-on-year to $9.12 billion, surpassing expectations. Non-GAAP EPS of $3.50 also beat analyst estimates. Despit... Read original →

Applied Materials’ Q2 results exceeded expectations, underscoring the robust momentum in semiconductor equipment demand fueled by AI infrastructure growth. Technologically, the surge in demand for advanced logic and DRAM chips is driving upstream equipment vendors, while downstream packaging segments are expanding due to increased demand for advanced packaging solutions. From a compliance standpoint, ongoing U.S. export controls on critical technologies pose risks to AMAT’s supply chain, particularly in Taiwan, China and Hong Kong, China. In competitive dynamics, NVIDIA’s continued investment in AI hardware may pressure AMAT to accelerate capacity expansion; otherwise, rivals like ASML and KLA could gain market share. Looking ahead, the next 12–24 months will hinge on whether AMAT can sustain its growth trajectory in advanced packaging and DRAM, as these segments are crucial to long-term profitability and market positioning.