Applied Materials, a leading U.S. supplier of chipmaking equipment, announced record earnings for the May-July quarter, reporting total revenue of $9.12 billion, driven by strong demand for semiconductors supporting AI infrastructure development [1]. The company raised its revenue expectations for 2026, citing robust global demand for semiconductor equipment, particularly for AI-related hardware [1].
Despite ongoing U.S. export controls that restrict shipments of advanced chip technology and equipment to China, Applied Materials projects that its revenue from China will continue to grow in 2026 [1]. The company attributes this growth to strong demand from Chinese clients investing in mature-node semiconductor manufacturing and expanding capacity for AI hardware [1]. Management emphasized that while U.S. government curbs have limited shipments of the most advanced tools, demand for equipment used to produce less advanced but widely used chips remains high in China, supporting the company's positive revenue outlook [1].
Applied Materials did not disclose specific revenue figures for its China business for the upcoming year but indicated that year-on-year growth is expected, supported by a strong order book from Chinese customers [1]. The company stated, “AI infrastructure buildout is driving unprecedented demand for semiconductor equipment globally. China remains an important market for us, and our mature-node portfolio positions us well under the current regulatory environment” [1].
CONCLUSION
Applied Materials' record earnings and optimistic outlook for 2026 highlight the company's resilience amid U.S. export controls, with continued growth expected from its China business. Strong demand for mature-node semiconductor equipment, especially for AI infrastructure, is expected to support the company's revenue trajectory. The market takeaway is positive, reflecting confidence in sustained demand and the company's strategic positioning.