Applied Materials: July Purged Positioning, Not The Thesis

Applied Materials (AMAT) delivered record Q2 FY2026 revenue of $7.91B (+11% Y/Y) and non-GAAP EPS of $2.86 (+20% Y/Y). Management raised CY2026 equipment growth guidance to 30%+, with improved order visibility and strong DRAM and AGS segment performance. Despite a ~40% drawdown from highs, fundamentals remain robust, and the recent correction is attributed to sector positioning rather than company weakness. We maintain a Buy rating as the reset in sentiment and positioning presents a compelling entry, even at a 34x forward P/E. Our last note on Applied Materials (AMAT) in April was directionally correct—stock was up ~30% ($514 vs. $398) and fundamentals inflected upward. The company posted a record revenue of $7.91B (+11% Y/Y), non-GAAP EPS This article was written by Himalayas Research 1.22K Followers Follow Buyside analyst covering global stocks on Seeking Alpha since 2018. I've been investing personally and professionally across major equity markets for about a decade. Subscribe for equity research and trading ideas.Opinions are not qualified investment or trading advice. Please do your own due diligence. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: All research, figures, and interpretation are provided on a best-effort basis only and may be subject to error. Any view, opinion, or analysis does not constitute as investment or trading advice; please do your own due diligence. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that do include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.