Story perspectives

Applied Materials Surges on Strong AI Demand, Beats Forecasts

2/13/2026

Summary

Story summary

Applied Materials Inc. (AMAT) reported Q1 revenue of $7.01 billion and adjusted EPS of $2.38, beating expectations.
The company anticipates second-quarter revenue of $7.65–$8.15 billion, significantly above the $7.03 billion forecast.
This optimism stems from surging demand for AI-related chipmaking equipment, especially high-bandwidth memory.
Despite a 2% year-over-year decline, Applied Materials' shares rose over 9% after-hours.
Export controls related to shipments to China contributed to a $252.5 million settlement.

History

Historical Context

The Export Administration Act of 1979 established regulations on technology exports, particularly to China, shaping U.S. export control policies. In 2018, reforms under the Export Control Reform Act aimed to strengthen controls on emerging technologies. Recently, Applied Materials Inc. faced a $252.5 million settlement due to these regulations, highlighting ongoing tensions between technological advancement and regulatory frameworks in international trade.

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Story summary

Applied Materials Inc. (AMAT) reported Q1 revenue of $7.01 billion and adjusted EPS of $2.38, beating expectations.
The company anticipates second-quarter revenue of $7.65–$8.15 billion, significantly above the $7.03 billion forecast.
This optimism stems from surging demand for AI-related chipmaking equipment, especially high-bandwidth memory.
Despite a 2% year-over-year decline, Applied Materials' shares rose over 9% after-hours.
Export controls related to shipments to China contributed to a $252.5 million settlement.

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