Applied Materials Shares Jump 2.8% on Apple-Intel Deal, Record Q2 Results
AMAT•Applied Materials shares climbed 2.8% in premarket trading on June 18 after President Trump announced Apple will partner with Intel to design and build chips domestically. The company posted record Q2 results driven by robust AI‐driven wafer fab equipment demand and recurring service revenues, while trading at an EV/revenue discount.
1. Stock Reaction to Apple-Intel Partnership
Applied Materials shares climbed 2.8% in premarket trading on June 18 after President Trump announced Apple will partner with Intel to design and build chips domestically, highlighting renewed focus on U.S. semiconductor manufacturing.
2. Record Q2 Performance
The company posted record Q2 revenue and profit, propelled by strong wafer fabrication equipment sales across memory and logic markets.
3. AI-Driven WFE Demand and Service Revenue
Demand for AI‐driven wafer fab equipment surged, boosting orders for deposition and etch systems, while recurring service revenues provided a stable and growing cash flow stream.
4. Valuation Discount and Analyst Upgrade
Applied Materials is trading at a discount to peers on EV/revenue despite its forward growth outlook, prompting analysts to upgrade the stock to Buy for long‐term investors.
