Applied Materials Rallies 8% Ahead of Earnings as Chip Stocks Rebound; Lam Research Jumps 9%, KLA Climbs 7%

Key points

• CoreWeave reported a beat-and-raise quarter on November 10, reviving interest in the AI trade and easing fears about AI data-center funding, which benefits equipment makers that support chip production and memory capacity expansion.
• Applied Materials rose about 8% ahead of its Q4 FY2026 results due November 12, as the broader group of chip-equipment names recovered from a steep monthly decline.
• Lam Research and KLA mirrored the trend, with Lam up 9% and KLA up 7%, after both had faced material declines in the prior month, underscoring a sector-wide risk-on mood rather than company-specific earnings catalysts.
• Executive guidance points for 2027 from Lam and KLA suggested wafer-fab equipment spending could exceed $200 billion, higher than 2026’s mid-$150 billion range, signaling a cyclical recovery in AI-related tooling demand.
• Applied Materials’ competitive positioning rests on its broad portfolio across deposition, etch, CMP, metrology, and services, giving it strength in DRAM, leading-edge logic, and advanced packaging, relative to Lam’s more focused deployment and KLA’s emphasis on process-control equipment.
• China-related risk remains a key variable, as Applied Materials’ revenue share from the region has contracted to about 28% from 35%, and management notes conversations with customers are increasingly extended toward 2030, influencing outlook and visibility.
• The next earnings call will be a critical test for whether AI-driven demand for advanced logic and memory equipment can sustain momentum, with the market closely watching orders and any signs of fatigue or new headwinds.