Every AI chip story eventually runs through the same handful of companies that build the machines used to actually manufacture semiconductors. Applied Materials is the biggest of them — and in 2026, its equipment order book is telling its own version of the AI boom story.
Applied Materials just posted record fiscal Q2 2026 revenue of $7.91 billion and raised its full-year semiconductor equipment growth forecast to more than 30%, up from an earlier estimate of over 20% (Applied Materials Investor Relations). Here’s the bull case for the world’s largest chip-equipment maker, and how to trade AMAT price action 24/7 with stock perps on BTSE.
Applied Materials Stock at a Glance
- Ticker: AMAT (Nasdaq)
- Business: Deposition, etch, and advanced-packaging equipment used to manufacture leading-edge logic chips, DRAM, and HBM
- Q2 FY2026 results: Record GAAP diluted EPS of $3.51, up 33% year-over-year, on revenue of $7.91 billion (Yahoo Finance)
- 2026 guidance: Semiconductor equipment business now expected to grow more than 30%, revised up from an earlier 20%+ forecast
- Dividend: Raised 15% to $0.53/share — the ninth consecutive year of increases
The Bull Case: Why Traders Are Watching Applied Materials
1. It Sells to Everyone in the AI Chip Race
Applied Materials doesn’t need to bet on which AI chip company wins — it sells the equipment that all of them need. Its EPIC Center collaboration hub in Silicon Valley counts TSMC, SK Hynix, and Micron among its partners, working together on next-generation chip technology. When any major memory or logic maker expands capacity, Applied Materials tends to get a call.
2. Advanced Packaging Is the Next Growth Leg
As AI accelerators get bigger and more power-hungry, chipmakers increasingly rely on advanced packaging — combining multiple chips and memory stacks into a single unit — rather than just shrinking transistors. Applied is projecting packaging revenue growth above 50% in calendar 2026 and just agreed to acquire ASMPT’s NEXX advanced-packaging business to expand its footprint further (Futurum Group).
3. HBM and DRAM Demand Is Filling the Order Book
Record DRAM revenue in the most recent quarter was driven directly by high-bandwidth memory and 3D advanced packaging orders — the exact equipment needed to build the memory chips that companies like Samsung, SK Hynix, and Kioxia are racing to expand. CEO Gary Dickerson has pointed to leading-edge logic, HBM, and advanced packaging as the company’s three biggest growth drivers heading into the back half of 2026.
4. The Valuation Debate Is Exactly What Makes It Tradeable
Applied Materials stock is up roughly 70% year-to-date, and bears argue the ~35x earnings multiple already prices in a lot of the AI cycle. China export restrictions add a real risk: China represents roughly 27–30% of equipment and services revenue, and expanded controls are expected to cost the company around $600 million in fiscal 2026 revenue (TIKR). That tension between AI-driven upside and geopolitical risk is exactly the kind of two-sided setup that makes a stock worth trading both ways.
Why Trade Applied Materials With Stock Perps?
Applied Materials trades on Nasdaq during regular U.S. market hours — which means AI capex headlines, China export news, and semiconductor sector moves that happen outside that window leave you stuck waiting for the bell. AMAT stock perps on BTSE remove that constraint:
- Trade 24/7 — react to overnight chip-sector news instead of waiting for Nasdaq to open
- Go long or short — trade the AI capex supercycle or fade the multiple-compression risk
- Up to 50x leverage — control a larger position with less upfront capital
- No expiry — hold as long as you maintain margin
- Stablecoin settlement — manage stock perps and crypto perps from one USDT wallet
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Trading Applied Materials Stock Perps: Quick Tips
- Watch its customers, not just AMAT itself. Capacity expansion news from Samsung, SK Hynix, and Kioxia all feed directly into Applied’s order book.
- Track China export-control headlines. They’ve moved the stock several percent in a single session before — and can cut both ways depending on the details.
- Mind quarterly guidance revisions. Applied has repeatedly revised its 2026 equipment growth forecast upward — guidance changes tend to be bigger catalysts than the headline EPS beat itself.
- Size for volatility around earnings. A ~35x earnings multiple leaves less room for error, so keep position sizing conservative going into quarterly results.
The Bottom Line
Applied Materials doesn’t make AI chips — it makes the machines that make AI chips, for essentially every major memory and logic manufacturer on the planet. Record earnings, an upgraded 2026 growth forecast, and a fast-growing advanced-packaging business make the bull case straightforward. A rich valuation and real China export-control risk make the bear case just as real. Whichever side of that debate you land on, stock perps let you trade it any hour of the day.
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This article is for informational purposes only and is not financial advice. Perpetual futures and leveraged products carry significant risk, including the risk of liquidation. Trade responsibly.
