Applied Materials (AMAT) is heading into its fiscal third-quarter 2026 earnings report with AMAT stock trading near a key resistance level. The shares recovered from a July low near $436 and recently reached $548.34.
The company will report results after the market closes on August 13. Traders are watching whether the recent recovery can extend above resistance while investors assess the outlook for semiconductor equipment demand.
AMAT stock is approaching resistance at $554.94 after moving back above major moving averages near $532.09 and $538.35. The relative strength index is near 61, which shows positive momentum without moving into overbought territory.
The stock has also formed a trading range between about $511 and $550. A move above $554.94 could open the way toward technical levels near $582.85, $613.67, and $651.12 if buyers maintain control after earnings.
Applied Materials expects semiconductor equipment growth of more than 30% in 2026. Management has pointed to AI data centers, advanced packaging, and new transistor designs as major drivers of spending.
The company expects leading-edge foundry logic, DRAM, and advanced packaging to generate nearly 80% of wafer fabrication equipment growth this year. Management expects advanced packaging to grow more than 50% as chipmakers adopt more chiplet-based designs.
Applied Materials previously reported record revenue of $7.91 billion, which helped support the recent recovery in AMAT stock. Strong guidance also helped rebuild demand for the shares after valuation concerns pushed the price lower in July.
The stock now trades at about 43.8 times forward earnings. That valuation places more focus on whether Applied Materials can maintain strong growth in AI-related equipment into fiscal 2027 and continue supporting higher spending across key chip markets.
Demand for AI infrastructure continues to support spending by hyperscalers and semiconductor manufacturers. Chipmakers are adding capacity for logic and DRAM production that supports AI training and inference systems.
Applied Materials also serves customers moving toward Gate-All-Around transistor structures and advanced packaging. Investors will watch the earnings report for updates on order trends, customer spending, and whether AMAT stock can hold its recent recovery above key support levels. The earnings update will also provide a clearer view of demand across memory, foundry, logic, and packaging markets worldwide.
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