Applied Materials Inc. (NASDAQ: AMAT) surged 13.4% Thursday, its largest single-session gain since 2023, after Micron Technology's third-quarter earnings confirmed that AI-driven memory demand is accelerating far beyond earlier projections, lifting chip equipment stocks across the board. The Philadelphia Semiconductor ETF (SOXX) rose 3.94%, a sharp reversal from Tuesday's 7.88% rout, even as the S&P 500 was essentially flat at -0.01% and the Nasdaq Composite slipped 0.46%, underscoring a distinct bifurcation between hardware and software within the AI complex.
Today's biggest movers
| Ticker | Close | Day | 1mo | YTD |
|---|---|---|---|---|
| $AMAT | $668.00 | +13.42% | +49.02% | +148.45% |
| $LRCX | $401.82 | +7.21% | +25.99% | +117.13% |
| $ASML | $1,841.18 | +4.45% | +15.23% | +58.21% |
| $PANW | $293.09 | +2.74% | +17.96% | +63.40% |
| $AMD | $532.57 | +2.47% | +7.47% | +138.32% |
| $DELL | $409.45 | -5.67% | +34.11% | +220.38% |
| $PLTR | $107.27 | -5.49% | -19.05% | -36.10% |
| $NOW | $89.52 | -4.56% | -12.34% | -39.29% |
| $BIDU | $103.99 | -3.55% | -19.95% | -30.81% |
| $MSFT | $352.83 | -3.46% | -14.50% | -25.40% |
Applied Materials surges 13% on new memory chip system and Micron catalyst
Applied Materials Inc. (NASDAQ: AMAT) closed at $668.00, up 13.42%, after the company unveiled a new chipmaking system engineered for AI memory processors alongside a sector-wide re-rating triggered by Micron Technology's blockbuster third-quarter results. Micron reported revenue of $41.46 billion, more than four times the year-prior level of $9.3 billion, with adjusted EPS of $25.11 against a $20.78 consensus, and guided the current quarter to approximately $50 billion. For equipment vendors, the logic is direct: that volume of memory revenue requires sustained fab investment, and AMAT is the largest supplier of deposition and etching tools to memory fabs globally.
Analysts moved quickly. Bank of America raised its price target to $720 from $540 with a Buy rating. Wells Fargo lifted its target to $715 from $520 with an Overweight designation. Citi analyst Atif Malik raised his target to $710 from $550. All three cited the multi-year CapEx visibility that Micron's guidance implies for memory equipment spending. AMAT's next earnings report is scheduled for August 13. As noted in yesterday's recap, the market had been holding its breath for the Micron print; today's reaction in equipment names is the exhale.
Lam Research gains 7% as memory equipment re-rating broadens
Lam Research Corp. (NASDAQ: LRCX) added 7.21% to close at $401.82, as investors extended the Micron-driven equipment trade to LRCX, which is the dominant supplier of etch systems for NAND and DRAM production. Micron's $50 billion revenue guide for the current quarter implies a sustained and growing consumable and tool spend at memory fabs, directly in LRCX's addressable market. Bank of America raised its LRCX price target to $480 from $330; Cantor Fitzgerald moved its target to $425 from $320. LRCX is now up 117% year-to-date, reflecting a full rerating of chip equipment multiples as AI infrastructure spending proves more durable than investors feared after the June 23 sector rout.
ASML climbs 4% ahead of Q2 earnings on July 15
ASML Holding N.V. (NASDAQ: ASML) gained 4.45% to $1,841.18, participating in the equipment rally while investors position ahead of a Q2 earnings print due July 15 before the open. Consensus estimates point to revenue of roughly $10.16 billion with normalized EPS near $7.85. Bank of America raised its ASML price target to $2,345 from $2,268; Wells Fargo analyst Joe Quatrochi lifted his target to $2,200 from $1,750. A lingering risk remains the proposed MATCH Act, which would extend U.S. chip export controls and could affect ASML's China sales, currently about 19% of net revenue. For now, the demand signal from Micron is outweighing that regulatory overhang in the market's calculus.