Buy, Hold, or Sell: Applied Materials Surged Right Back Toward $500 Following a Brutal June Flush. Here's Where I'd Buy

Applied Materials is back in the spotlight after a brutal June flush, with shares near $567.25 following a 25% weekly jump. The company remains the largest semiconductor equipment maker, supplying deposition, etch, and inspection tools to leading foundries and memory makers. Management has raised its calendar 2026 growth outlook to more than 30%, signaling stronger visibility into 2027. Valuation remains rich, with a trailing P/E around 53 and a forward multiple near 47. In Q2 FY2026, revenue reached $7.91 billion and non-GAAP EPS was $2.86, with a 50% gross margin—the best in 25 years. Q3 guidance calls for about $8.95 billion in revenue and $3.36 per share.