Applied Materials (AMAT) reports fiscal Q3 earnings Thursday, with analysts expecting 36.7% EPS growth on strong AI capex-driven demand. Here's this earnings preview's full breakdown.
This Applied Materials stock (AMAT) earnings preview looks at one of the chip industry's oldest and most essential suppliers heading into a report shaped almost entirely by AI capex demand. Founded in 1967, Applied Materials supplies critical equipment to chip foundries like Intel (INTC) and Taiwan Semiconductor (TSM), along with memory makers like SK Hynix and Micron (MU).
What Wall Street expects from AMAT
Applied Materials reports fiscal third-quarter results after the close on Thursday, August 13. Analysts forecast EPS of $3.39, up 36.7% year-over-year, on revenue of $9.01 billion, up 23.4% — growth rates that reflect just how central the company has become to the broader AI infrastructure buildout.
Why analysts see AI capex driving upside
Stifel analysts Brian Chin and Daniela Talio reiterated a Buy rating and $650 price target ahead of this AMAT earnings preview, forecasting quarter-over-quarter revenue growth above 13%. "Amidst a strong AI expansion/investment phase for DRAM, advanced logic and packaging," they wrote, "we expect Applied to post revenue growth above our estimates." They also flagged their own fiscal fourth-quarter estimates — including 4%-plus sequential growth — as likely conservative, given a full quarter of output expected from Applied's new Singapore facility, which began ramping in June.
A lower-beta way to play the AI capex theme
Chin and Talio describe Applied Materials as a high-quality, lower-beta semiconductor-equipment holding, backed by a broad product portfolio addressing customers' technology roadmap and scaling challenges. For investors seeking AI capex exposure without the volatility of pure-play infrastructure names, this earnings preview suggests AMAT's diversified equipment business offers a comparatively steadier profile.
What to watch in Thursday's report
- DRAM, advanced logic, and packaging demand trends, the key growth drivers cited by Stifel
- Singapore facility ramp progress, a factor that could support upside into the next quarter
- Sequential revenue growth, with Stifel's above-13% estimate as a benchmark
- Forward guidance commentary, given how central AI capex has become to equipment demand broadly
Bottom line
This AMAT earnings preview points to a company whose fortunes are now deeply tied to AI capex spending across the entire chip manufacturing supply chain. With Stifel's estimates described as potentially conservative, Thursday's report carries real upside potential if AI-driven equipment demand continues accelerating as analysts expect.
This post is based on reporting from Kiplinger as of August 7, 2026. This content is for informational purposes only and does not constitute investment advice. Always do your own research before making investment decisions.
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