The semiconductor‑equipment maker said its third‑quarter sales rose 25% year‑over‑year, reaching $9.1 billion, the highest quarterly total in the company’s history. Net income jumped 43% to $2.5 billion, underscoring the strength of the latest product roll‑outs.
During the quarter, Applied Materials launched several new hardware systems aimed at tackling technical challenges in advanced memory scaling, a move the company says is helping customers meet the growing demand for AI‑driven workloads.
In parallel with the product launches, Applied Materials formalized a joint development agreement with an undisclosed partner to design augmented‑reality (AR) optics, expanding the firm’s portfolio beyond traditional wafer‑fabrication equipment into emerging display technologies.
The company’s operating margin of 34% for the quarter reflects both the higher‑margin AR optics venture and the pricing power it has gained as AI‑related chip production accelerates. Analysts note that the margin improvement marks a significant step up from the prior quarter’s performance.
By contrast, rival Intel disclosed a large‑scale public common stock offering and confirmed pending workforce reductions in its data‑center division, reporting a 12% operating margin for its fiscal second quarter ended June 27, 2026. Intel’s revenue also rose 25% year‑over‑year to $16.1 billion, but the company posted a $10.8 billion net loss tied to a non‑cash accounting charge related to the U.S. CHIPS Act.
Investors are watching both firms closely as the AI boom fuels demand for advanced semiconductor manufacturing equipment. Applied Materials’ record quarter and new AR optics partnership suggest it is capitalising on that trend, while Intel’s restructuring efforts aim to restore profitability amid the same market dynamics.