Applied Materials campus in Silicon Valley

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Applied Materials jumps after posting better-than-expected Q1 results, strong Q2 outlook

The semicap company just reported its Q1 results.

2/12/26 4:02PM

Applied Materials is surging in postmarket trading after posting better-than-expected Q1 results along with a robust Q2 outlook.

For its fiscal Q1, the semicap company reported:

Net revenue of $7.01 billion (estimate: $6.86 billion, guidance for $6.35 billion to $7.35 billion).
Adjusted earnings per share of $2.38 (estimate: $2.21, guidance for $1.98 to $2.38).

Profitability was also a strong point, as adjusted gross margins came in at 49.1% for the quarter, north of estimates and guidance for 48.4%.

For Q2, management expects:

Net revenue of $7.65 billion, plus or minus $500 million (estimate: $7.03 billion).
Adjusted EPS of $2.64, plus or minus $0.20 (estimate: $2.29).

This robust near-term guidance is particularly encouraging, as the company reiterated that it sees demand picking up toward the second half of the year.

“The need for higher performance and more energy-efficient chips is driving high growth rates for leading-edge logic, high-bandwidth memory [HBM] and advanced packaging,” President and CEO Gary Dickerson said in a press release. He also said the company expects to grow its semiconductor equipment business by over 20% this calendar year.

“Our largest customers are giving us increased longer term visibility to ensure we have operational capacity and service support in place for their ramps,” he added during the conference call. “Based on this visibility, we expect strong growth momentum to be carried into 2027.”

The company said that HBM and 3D chiplet stacking, two areas where AMAT has strong market share, will be the fastest-growing industry segments this year.

The longevity and magnitude of the AI boom has fueled a sharp rise in Applied Materials so far in 2026, as an enduring supply/demand imbalance pushes chipmakers to boost capacity, bolstering the outlook for wafer fab equipment sales.

CFO Brice Hill said the company was “well-positioned to meet the increasing demand” because “we’ve proactively increased our inventory by nearly $500 million year-over-year to meet the increasing build plans.”

All this has more than offset any lingering worries about the state of its China business after management warned in early October that export restrictions would curb sales by roughly $600 million this fiscal year.

Late on Wednesday, the company reached an agreement that will see it pay $252.5 million to settle a Commerce Department probe into allegations that some of its business with China ran afoul of export restrictions.

Max Knoblauch2h

Hertz and Avis Budget appear to be benefiting as travelers balk at airport wait times

As the Department of Homeland Security shutdown drags on, resulting in some excruciating airport wait times, rental car companies Avis and Hertz are seeing a boost.

Both companies are up more than 10% on Thursday, continuing a weeklong trend of trading momentum. From market close on March 20 to midday Thursday, Avis shares are up about 44%, while Hertz shares are up 24%.

Would-be flyers may be pivoting from sky to highway, even as gas prices climb. According to TravelPulse, search traffic for Hertz is up 15% in recent days.

The TSA is experiencing the longest wait times in its 24-year history, officials have said. Airfares rising as jet fuel prices remain elevated is likely adding to travelers’ decision.

Hertz Reports Spike in Car Rental Searches as US Airports Deal With Long TSA Lines

Would-be flyers may be pivoting from sky to highway, even as gas prices climb. According to TravelPulse, search traffic for Hertz is up 15% in recent days.

The TSA is experiencing the longest wait times in its 24-year history, officials have said. Airfares rising as jet fuel prices remain elevated is likely adding to travelers’ decision.

Saleah Blancaflor3h

US gas prices increase $1 in 1 month as markets expect $4 per gallon in coming days

As gas demand remains on the rise in the midst of spring break season and crude oil prices rise as hopes the Iran war will draw down decrease, gas prices have steadily risen.

According to the American Automobile Association, the national average price for a gallon of regular gas is up $0.10 from the previous week and up $1 since last month. AAA reports that there was a steep rise from $2.98 on February 26 to $3.98 as of March 26.

AAA said that average gas prices could hit $4 per gallon in the next few days, which would mark the first time since August 2022 that they’ve hit that level.

According to the Energy Information Administration, demand for gas rose last week from 8.72 million barrels per day to 8.92 million. The data also shows that domestic gas supply fell from 244 million barrels to 241.4 million. Meanwhile, gas production grew last week, averaging 9.7 million barrels per day.

Prediction markets show traders pricing in a 61% chance the price of gas could surpass $4 by the end of the month. As AAA projects that gas prices could continue to rise in the next few weeks, markets also imply there’s a 42% and 40% chance gas could finish roughly around $4.02 or $4.04 per gallon, respectively, by March 31.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

National gas prices increase one dollar in one month

AAA said that average gas prices could hit $4 per gallon in the next few days, which would mark the first time since August 2022 that they’ve hit that level.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

Max Knoblauch4h

Ethanol players climb following the Trump administration’s move to waive summer gas regulations

Ethanol-exposed companies are climbing on Thursday, following the Trump administration’s move yesterday to waive summertime limitations on the sale of E15 gas, a blend of fuel containing 15% ethanol.

Sale of the higher-ethanol blend is limited in about half of the US over the summer months to lessen smog. Including this year, those limitations have been waived for five summers in a row. According to Axios reporting, E15 typically costs about $0.10 to $0.40 less per gallon while delivering slightly lower fuel economy.

Ethanol companies are climbing on the decision, with Rex American Resources up more than 5%, Green Plains up 3%, and Gevo up about 2%. Rex and Gevo also closed higher on Wednesday.

Stocks fall as oil prices rise

Sometimes there’s only one story in the markets. This is one of those times.

Matt Phillips5h

Hyunsoo Rim8h

Super Micro drops on shareholder lawsuit alleging securities fraud around China chip smuggling

Super Micro Computer fell more than 4.5% at one point in premarket trading Thursday on news that shareholders are suing the company, alleging securities fraud after its cofounder and two others were charged with illegally smuggling chips to China.

The lawsuit follows a US criminal indictment that was unsealed last week and accuses the company’s cofounder, sales manager, and a contractor of illegally diverting $2.5 billion worth of AI servers containing Nvidia chips to China, in violation of US export controls. The initial news sent the stock plunging 33% in a single day, wiping out billions in market cap.

While the company wasn’t named as a defendant in the Department of Justice indictment, it announced its cofounder’s resignation and stated that it’s been “cooperating fully with the government’s investigation and will continue to do so.”

According to the complaint filed in San Francisco federal court and viewed by Reuters, shareholders allege the company inflated its stock by overstating its business outlook, while concealing its significant reliance on China sales and “material weakness” in its compliance with export control regulations.