Applied Materials Soars as AI Chips Drive Profit Growth

February 13, 2026 11:35 AM EST

Shares of Applied Materials (AMAT) climbed 9% on Friday after the semiconductor equipment manufacturer reported a significant increase in profits for the last quarter, driven by strong demand for advanced chips.

In its first-quarter fiscal results for 2026, the company saw profits leap over 70% to $2.03 billion, translating to $2.45 per share. However, sales saw a slight dip of 2%, totaling $7.01 billion.

“The push for higher-performance and energy-efficient chips is leading to rapid growth in cutting-edge logic, high-bandwidth memory, and advanced packaging,” CEO Gary Dickerson stated in a press release. He also noted that this demand would fuel growth in Applied Materials’ semiconductor equipment sector this year.

The rising number of AI data centers has heightened the appetite for powerful and energy-efficient semiconductors. This trend benefits companies like Applied Materials, which specialize in the necessary equipment and processes to manufacture these chips.

Looking ahead, Dickerson believes demand will stay robust throughout the year, with global semiconductor revenue projected to hit $1 trillion.

For the current quarter, Applied Materials forecasts revenue between $7.15 billion and $8.15 billion, and adjusted earnings per share to fall within the $2.44 to $2.84 range. Notably, the upper limits of these projections signify a double-digit gain in both respects.

Before Friday’s report, Applied Materials had already seen a nearly 28% rise in its share price since the year’s start. As of noon on Friday, the stock had surged about 95% over the past year.

Apple Stock Loses Ground Again Due to AI Fears and Political Pressure

February 13, 2026 10:28 AM EST

Apple (AAPL) shares have taken another hit.

The stock dropped 5% after the Federal Trade Commission issued a warning letter regarding its News service. Furthermore, reports indicated that the release of some AI-powered Siri features would be delayed again, amplifying ongoing concerns about Apple’s AI capabilities lagging behind competitors.

Apple and its peers—often referred to as the Magnificent Seven—have been struggling in 2026 so far. Shares of major players like Alphabet, Microsoft (MSFT), Amazon (AMZN), and Meta (META) have been pressured by worries over their excessive spending on AI infrastructure. Historically, Apple’s heavy data center investments have benefited chipmaker Nvidia (NVDA), but even Nvidia’s stock has been hindered by apprehensions about tech valuations.

Prior to this week’s challenges, Apple stock seemed to be recovering. In mid-January, Apple announced a partnership with Alphabet’s (GOOG) Gemini for its future AI capabilities, including the recently delayed Siri feature. Shortly thereafter, the company reported record earnings for a crucial holiday quarter, with iPhone and services revenue exceeding expectations.

Following the positive earnings report, Apple shares rose nearly 8% in the subsequent week, pushing the stock into positive territory for the year. However, Thursday’s decline reversed much of those gains, with shares down about 0.8% Friday morning and approximately 4.5% lower year-to-date.

What Does Inflation Reporting Mean for the Federal Reserve?

February 13, 2026 9:48 AM EST

Sluggish inflation might provide the Federal Reserve with more flexibility to observe economic conditions in the coming months.

According to the CME Group’s FedWatch tool, traders are anticipating a 70% likelihood that central bank officials will reduce the federal funds rate at their upcoming meeting in June. This is an increase from 66% just before the inflation report was released. The FedWatch tool analyzes interest rate projections based on trading data related to federal funds futures.

“The inflation figures from January, along with a solid jobs report, reinforce the FOMC members’ view that the easing cycle can continue for several months,” stated Matt Collier, an economist at Moody’s Analytics.

Inflation Was Subdued in January

February 13, 2026 8:48 AM EST

The consumer price index experienced a 2.4% annual rise in January, slowing from December’s increase of 2.7%. This figure was below economists’ predictions and marked the lowest level since May.

Core inflation saw an annual rate increase of 2.5%, down from 2.6% in December, representing the lowest rate since March 2021. Many economists consider core inflation to be a more reliable inflation measure, as it excludes volatile food and energy prices that can fluctuate due to external factors not reflecting the overall economy.

Stock Indexes Fall Ahead of January CPI Report

February 13, 2026 8:10 AM EST

Futures contracts tied to the Dow Jones Industrial Average dropped approximately 0.2% in premarket trading.

S&P 500 futures also fell by 0.2%.

The Nasdaq 100 experienced a 0.3% decline.