KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems that are used to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. It also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, inkjet and additive printing, UV laser drilling, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

KLA appears to be a high-margin and highly profitable business, but the market is already pricing in an almost perfect scenario. Profitability is impressive: ROE is 85.39%, ROA 28.47%, ROI 41.85%, while operating margin of 41.69% and net margin of 35.66% remain at a very high level and are generally stable over the years. Revenue and operating profit are growing: revenue increased to 3.658 billion, operating income to 1.554 billion, and net income to 1.201 billion, confirming the resilience of the model. Liquidity is comfortable: current ratio is 2.88 and quick ratio is 2.11, with cash on hand of almost 4.96 billion, so there are no visible short-term solvency risks. At the same time, the debt burden is noticeable: long-term debt is 5.887 billion, debt/equity is 0.93, and total liabilities exceed equity, which calls for caution in the assessment. The main limiting factor is the extremely expensive valuation: P/S of 16.61, P/B of 40.99, P/FCF of 56.43, and P/E of 46.60 are significantly above industry medians, meaning the premium for quality is already very large. Even with such strong returns on capital, this set of multiples leaves limited room for further valuation expansion. Dividend yield of 0.11% has declined compared with last year, so dividend support for shareholders is minimal. On the positive side, gross profit rose to 2.244 billion, gross margin is 61.30%, and equity increased to 6.35 billion, indicating the accumulation of intrinsic value. However, EPS and EPS forecast currently look weaker than one might expect from such a high-quality business, which reduces confidence in a rapid upward revision of expectations. Overall, the fundamentals are strong, but the valuation is already very stretched, so only a moderately conservative downward adjustment is appropriate for the target price.

KLA Corporation

Средний индекс, значительно упал. Быки продолжают терять уверенность.

Medium index, significantly down. Bulls continue to lose confidence.

Слабый индекс, значительно упал. Рынок на стороне быков.

Weak index, significantly down. The market is on the bulls' side.

Слабый индекс, без изменений

KLA has strong profitability and liquidity, but its valuation on P/E, P/S, P/B, and P/FCF is very expensive, and dividend support is almost nonexistent.

The S&P 500 Index ($SPX) (SPY) closed down -0.58% on Thursday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.60%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.08%. E-mini S&P futures (ESU26) fell -0.61%, and September E-mini Nasdaq futures (NQU26) fell -1.07%.
Stock indexes settled lower on Thursday, with the S&P 500 and Dow Jones Industrials dropping to 5-week lows. Soaring energy prices pushed global bond yields sharply higher on Thursday, weighing on stocks. WTI crude oil surged more than +6% on Thursday to a 3.5-month high amid fears that the US-Iran war will persist, increasing inflation risks and prompting the world’s central banks to keep raising interest rates. The 10-year UK Gilt yield jumped to a 19-year high today of 5.38%, the 10-year German Bund yield surged to a 17-year high of 3.51%, and the 10-year T-note yield rose to a 2.75-year high of 4.96%.
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Stocks added to their losses on Thursday, and T-note yields climbed further after US Aug PPI rose more than expected, signaling persistent price pressures, and after weekly jobless claims remained low, signaling labor market strength.
US weekly initial unemployment claims fell -1,000 to 206,000, close to expectations of 205,000 and signaling a stable labor market.
US Aug PPI final demand rose +5.4% y/y, stronger than expectations of +5.3% y/y. Aug PPI ex-food and energy rose +4.6% y/y, right on expectations.
US Aug existing home sales fell -2.0% m/m to a 14-month low of 3.98 million, right on expectations.
The escalating trade war between the US and Canada is also weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
Oct WTI crude oil prices (CLV26) surged more than +6% on Thursday to a 3.5-month high. Crude prices are climbing after Iran said that it is ready for a more intense war and will escalate counterstrikes if the US continues attacking its territory and infrastructure. The prospect of a lengthy conflict that limits crude supplies from the Middle East is underpinning crude oil prices. Crude oil prices added to their gains on Thursday after Saudi Arabia told OPEC that its crude production in August fell to 6.238 million bpd, the lowest since 1990.
The markets are discounting a 75% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 dropped to a 6-week low and closed down -0.67%. China's Shanghai Composite closed down -0.43%. Japan's Nikkei-225 Stock Average closed up +0.20%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -23 ticks. The 10-year T-note yield rose +10.7 bp to 4.948%. T-notes tumbled to a 2.75-year nearest futures low on Thursday, and the 10-year T-note yield rose to a 2.75-year high of 4.963%. T-notes sold off as crude oil prices surged, which boosted inflation expectations. WTI crude oil rose more than +6% on Thursday to a 3.5-month high, lifting the 10-year breakeven inflation rate to a 3.25-month high of 2.419%.
On the positive side for T-notes was the decline in US Aug existing home sales to a 14-month low. T-notes also found support on strong demand for the Treasury’s $22 billion auction of 30-year T-bonds that had a bid-to-cover ratio of 2.61, well above the 10-auction average of 2.40.
European government bond yields moved sharply higher on Thursday. The 10-year German bund yield jumped to a 17-year high of 3.508% and finished up +5.7 bp to 3.501%. The 10-year UK gilt yield soared to a 19-year high of 5.376% and finished up +11.2 bp to 5.374%.
The ECB, as expected, raised the deposit facility rate by 25 bp to 2.50% and said inflation will stay above 2% for an "extended period."
The ECB raised its 2026 Eurozone GDP forecast to +0.9% from a prior forecast of +0.8%, and kept its 2026 inflation ex-food and energy forecast unchanged at 2.5%.
Markets are discounting a 97% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated on Thursday, pressuring the broader market. CoreWeave (CRWV), Intel (INTC), and Lam Research (LRCX) closed down more than -5%, and Micron Technology (MU) and Western Digital (WDC) closed down more than -4%. Also, ARM Holdings (ARM), SanDisk (SNDK), Advanced Micro Devices (AMD), KLA Corp (KLAC), Marvell Technology (MRVL), and Applied Materials (AMAT) closed down more than -3%, and Nvidia(NVDA), ASML Holding NV (ASML), and Seagate Technology Holdings Plc (STX) closed down more than -2%.
Copper-producing stocks are falling today, with copper prices down more than -4% after Reuters reported that the White House has not yet made a decision on refined copper tariffs as it weighs concerns of higher prices raising manufacturing costs against the potential benefits of encouraging more domestic mining. Southern Copper (SCCO) closed down more than -7%, and Freeport-McMoRan (FCX) closed down more than -6%. Also, Rio Tinto Plc (RIO) closed down more than -4%, and Newmont Corp (NEM) closed down more than -2%.
Home builders and suppliers moved lower on Thursday after the 10-year T-note yield jumped to a 2.75-year high, pushing up mortgage rates and weighing on housing demand. Lennar (LEN), KB Home (KBH), and Builders Firstsource (BLDR) closed down more than -3%. Also, DR Horton (DHI) and Pulte Group (PHM) closed down more than -2%, and Toll Brothers (TOL) and Home Depot (HD) closed down more than -1%.
Cooper Cos (COO) closed down more than -14% to lead losers in the S&P 500 after reporting Q3 net sales of $1.07 billion, below the consensus of $1.10 billion, and cutting its full-year revenue forecast to $4.23 billion to $4.25 billion from a previous forecast of $4.29 billion to $4.32 billion, weaker than the consensus of $4.31 billion.
American Eagle Outfitters (AEO) closed down more than -13% after reporting Q2 comparable sales rose +6.00%, weaker than the consensus of +6.47%.
FactSet Research Systems (FDS) closed down more than -5% after OpenAI said it’s releasing ChatGPT for Financial Services, a new tool for investment bankers and equity researchers.
AeroVironment (AVAV) closed up more than +4% after reporting Q1 revenue of $480.5 million, stronger than the consensus of $455.8 million.
Apple (AAPL) closed up more than +3% to lead gainers in the Dow Jones Industrials after analysts were generally positive about the company’s new iPhone Duo, its first foldable phone.
Earnings Reports (9/11/2026)
Kroger Co/The (KR) and Rent the Runway Inc (RENT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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Stocks Settle Lower as Surging Crude Prices Boost Fed Rate Hike Chances

Teradyne TER is benefiting from accelerating artificial intelligence (AI)-driven semiconductor test demand, particularly across high-performance compute, networking, and advanced memory applications, positioning the company as a formidable player against KLA KLAC and Cohu COHU. The company’s growing demand for its UltraFLEXplus system, which is designed to address the complex testing requirements of high-performance processors and networking devices, has been noteworthy. UltraFLEXplus enables customers to reduce test development time, driving higher-efficiency volume production.
Building on this momentum, Teradyne recently launched three new instruments for its UltraFLEXplus semiconductor test platform to address growing AI and data-center computing requirements. The UltraPin5000-EM offers expanded vector memory and faster pattern loading for complex AI devices, while UltraPort-PCIe6 supports PCIe Gen6 testing at 64 Gbps across 32 lanes. The UltraVS64-HP delivers up to 1,280 amps per instrument to test increasingly power-intensive compute devices. Together, the products expand UltraFLEXplus capabilities across advanced digital, high-speed interface and power testing, supporting semiconductor manufacturers from wafer probe through final device validation.
The UltraFLEXplus system has proven to be a key driver in boosting the Semiconductor Test business. In the second quarter of 2026, Teradyne delivered a remarkable 128% year-over-year growth in its Semiconductor Test business, contributing $1.12 billion out of the company’s total $1.3 billion in sales. This segment alone accounted for 84% of total sales.
The growing demand for AI-driven applications, particularly in data centers, is expected to continue driving the adoption of UltraFLEXplus. The strong demand for UltraFLEXplus is likely to support top-line growth, strengthening Teradyne’s competitive position against KLA and Cohu in the semiconductor test market. For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion.
How Competitors Fare Against TER
Teradyne is facing stiff competition from companies such as KLA and Cohu. Both companies are expanding their footprint in the AI space.
KLA is benefiting from the growing demand for AI through its leadership in process control and its ability to address growth markets in wafer fab equipment, including high-bandwidth memory and advanced packaging.
In May 2026, Cohu received approximately $5 million in multiple orders for its Diamond X platform from a leading semiconductor manufacturer. The systems will support testing of next-generation GaN power devices for AI data centers, strengthening Cohu’s position in AI infrastructure and high-efficiency power semiconductor testing.
TER’s Share Price Performance, Valuation and Estimates
Teradyne shares have surged 84.4% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s growth of 18.2% and the Zacks Electronics - Miscellaneous Products increase of 37.5%.
TER Stock Performance
TER stock is trading at a premium with a forward 12-month Price/Sales of 9.75X compared with the Computer & Technology sector’s 6.11X. TER has a Value Score of F.
TER's Valuation
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $9.10 per share, which has been unchanged over the past 30 days. This suggests 129.80% year-over-year growth.
Teradyne, Inc. Price and Consensus
Teradyne currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Teradyne Rides on Strong UltraFLEXplus Demand: Can It Beat KLAC & COHU?

Amkor Technology AMKR has struggled to keep pace with its industry and broader sector, with shares down 9.6% over the past month. In comparison, the Zacks Electronics - Semiconductors industry has declined 1.9%, while the broader Computer and Technology sector has edged up 0.5%.
AMKR shares have also underperformed Micron Technology MU, Cohu, Inc. COHU and KLA Corporation KLAC over the same period. Micron Technology led the group with an 18.1% gain, followed by Cohu’s 2.5% increase, while KLA Corporation has declined 3.7%.
One-Month Price Comparison
AMKR’s recent decline appears to be driven primarily by near-term Communications weakness, ongoing smartphone and memory-related pressures, the temporary System-in-Package (SiP) transition and concerns surrounding its heavy capacity investments. However, these challenges need to be viewed against Amkor’s broader long-term strategy. The company is increasing investment in advanced packaging, expanding its manufacturing footprint and deepening relationships with key semiconductor players.
Importantly, Amkor's recent investments are increasingly aligned with some of the semiconductor industry's strongest structural growth trends. The company is seeing rising demand for Advanced Packaging, AI and high-performance computing (HPC), automotive and ADAS applications, while its strategic partnerships with TSMC and NVIDIA could strengthen its position.
Therefore, this recent price drop could present an opportunity for investors to buy shares at a lower price and participate in Amkor's long-term growth potential.
Strong Advanced Packaging Growth Supports AMKR
Amkor’s long-term growth prospects are increasingly tied to the structural shift toward Advanced Packaging, as rising AI, high-performance computing (HPC) and data-center complexity require higher integration, performance and power efficiency. The company has established capabilities across 2.5D integration, high-density fan-out (HDFO), advanced flip chip, wafer-level processing and advanced SiP. Its second quarter 2026 results showed this opportunity gaining traction, with advanced products generating $1.56 billion of revenue, up from $1.23 billion a year earlier. It also reported growing customer engagements across 2.5D, HDFO and emerging co-packaged optics, including a data-center CPU HDFO program that began ramping in the second quarter.
The opportunity extends beyond near-term revenue growth because advanced packaging can support higher-value applications and improve Amkor’s overall product mix and earnings power. The company is deepening strategic relationships with TSMC and NVIDIA, while expanding advanced-packaging capacity in Arizona and Korea. Management said several technology platforms were already operating at full capacity and that customer engagements increasingly involve longer planning horizons and capacity alignment. This is important for investors, as a greater mix of advanced packaging will enable AMKR to capture more value from the growth of AI and HPC, while simultaneously facilitating better utilization of its expanded manufacturing base.
Geographic Diversification Gives AMKR a Competitive Edge
Amkor’s broad and strategically located manufacturing footprint is a key competitive advantage, giving customers greater geographic flexibility, supply-chain resiliency and regional manufacturing options. The company’s facilities across key regions in Asia and Europe allow customers to diversify supply chains and mitigate operational risks, while its U.S. headquarters and new Arizona facility strengthen its ability to support customers seeking to regionalize semiconductor production. Importantly, AMKR’s geographic diversity also allows it to qualify production at multiple sites and optimize asset utilization, providing greater flexibility as customer demand shifts across markets and technologies.
Amkor is expanding this footprint in a way that is increasingly aligned with long-term customer requirements. Phase 1 of the Arizona facility is fully committed, while new capacity is being added in Korea, including a Songdo assembly and test building and additional Gwangju cleanroom capacity expected to support data-center and advanced-packaging opportunities from 2028 onward. Amkor is also expanding facilities in Vietnam, Portugal and Taiwan. The move of SiP production from Korea to Vietnam is particularly strategic because it frees capacity in Korea for rapidly scaling, higher-value Computing programs while increasing SiP and NAND capacity in Vietnam.
Amkor’s geographic diversification could become an increasingly important competitive advantage as semiconductor customers seek greater supply-chain resilience and regionalized production. While Micron Technology, Cohu and KLA Corporation also maintain broad global footprints, their geographic networks support different business models. AMKR’s footprint is directly aligned with its OSAT operations, enabling customers to access packaging and test capacity across multiple locations. Its investments in Arizona, Korea, Vietnam, Portugal and Taiwan further strengthen this flexibility and align capacity with evolving customer requirements. For investors, this could help AMKR win new programs, deepen customer relationships and support more durable long-term growth.
AMKR Stock Trades Lower Than Its Growth Prospects
Amkor shares appear attractively valued, offering investors a potentially compelling entry point relative to the company’s growth outlook. The stock’s Zacks Value Score of A indicates an attractive valuation, while its VGM Score of B suggests better returns.
Amkor’s earnings outlook further strengthens the investment case. The Zacks Consensus Estimate for 2026 earnings stands at $2.6 per share, implying robust year-over-year growth of 73.3%. This strong expected earnings expansion suggests that the stock’s current valuation may not fully reflect its growth potential.
Amkor Technology, Inc. Price and Consensus
AMKR also trades at a forward P/B ratio of 2.53X, well below the industry and sector averages of 8.72X and 8.87X, respectively. The significant valuation discount, combined with strong projected earnings growth, indicates that AMKR may be trading below levels justified by its underlying growth prospects, presenting potential upside for value-oriented investors.
AMKR’s P/B Ratio (TTTM)
Parting Thoughts on AMKR
Amkor’s recent pullback provides an attractive entry point for investors seeking to capitalize on the company’s strong long-term growth potential. Strong Advanced Packaging demand, AI and HPC opportunities, geographic diversification and strategic partnerships provide solid growth drivers. Combined with attractive valuation and robust earnings expectations, AMKR’s growth-driven prospects make the current dip a potential buying opportunity for investors.
AMKR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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AMKR Stock Falls 10% in a Month: Why the Dip is a Buying Opportunity

Teradyne TER shares have plummeted 15.4% over the past month, underperforming the Zacks Computer & Technology sector and the Zacks Electronics - Miscellaneous Products industry’s 2.4% and 12.9% decreases, respectively.
TER shares have also underperformed its peers, which include Vertiv VRT, Cohu COHU and KLA Corporation KLAC. The companies are also expanding their footprint in the AI infrastructure space. Vertiv, Cohu and KLA shares have lost 4.9%, 13.4% and 11.9%, respectively, over the past month.
The underperformance can be attributed to customer concentration, program timing, muted mobile demand, memory-driven margin dilution, higher operating spending and currency exposure.
TER Stock Performance
Image Source: Zacks Investment Research
Despite these headwinds, Teradyne is benefiting from strong AI-related demand, which is driving significant investments in cloud AI build-out as customers accelerate production of a wide range of AI accelerators, networking, memory and power devices. These factors are helping Teradyne fend off competitors such as Vertiv, Cohu and KLA.
Teradyne Rides on Strong Datacenter Growth
Teradyne is benefiting from accelerating AI-driven data-center investments, which are expanding demand across semiconductor test, networking, storage, product test and robotics. This momentum is strengthening Teradyne’s prospects in the broader data-center infrastructure ecosystem. More than 60% of Teradyne’s second-quarter 2026 revenues were AI-driven, underscoring the success of its wafer-to-AI-data-center strategy.
A key driver of Teradyne’s momentum is the acceleration in semiconductor capital expenditures, especially in wafer fabrication equipment (WFE). As WFE CapEx is forecasted to approach $250 billion by the end of the decade, this is expected to drive 5% to 10% annual growth in wafer production and 15% to 20% compound annual growth in total transistor production. The increase in wafer and transistor production directly boosts demand for automated test equipment.
Teradyne’s leadership in both SOC and memory test solutions, especially for high-bandwidth memory (HBM) and DRAM, ensures it is well-placed to capitalize on this growth. The company’s memory business also saw revenues exceed $200 million for the third consecutive quarter in the second quarter of 2026, driven by strong demand for HBM and DRAM and a revival in NAND testing.
Growth is being reinforced by Quantifi Photonics and the Multilane Test Products JV, which expand Teradyne’s exposure to optical and high-speed interconnect testing. The company expects the Co-Packaged Optics testing market alone to reach $300-$700 million by 2028. Robotics is also benefiting as AI data-center construction boosts automation demand in electronics manufacturing and semiconductor production.
Teradyne Rides on Strong UltraFLEXplus Demand
Teradyne is benefiting from the growing demand for its UltraFLEXplus system, which has been specifically designed to address the complex testing requirements of high-performance processors and networking devices. UltraFLEXplus enables customers to reduce test development times, driving up high-efficiency volume production.
Teradyne’s expanding portfolio has been noteworthy. The company recently launched three new instruments for its UltraFLEXplus semiconductor test platform to address growing AI and data-center computing requirements. The UltraPin5000-EM offers expanded vector memory and faster pattern loading for complex AI devices, while UltraPort-PCIe6 supports PCIe Gen6 testing at 64 Gbps across 32 lanes.
The UltraVS64-HP delivers up to 1,280 amps per instrument to test increasingly power-intensive compute devices. Together, the products expand UltraFLEXplus capabilities across advanced digital, high-speed interface and power testing, supporting semiconductor manufacturers from wafer probe through final device validation.
TER Initiates Positive Q3 Guidance
Teradyne’s expanding portfolio and strong demand for AI-related applications are expected to drive the company’s top-line growth.
For the third quarter of 2026, Teradyne expects revenues in the range of $1.20-$1.30 billion. The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $1.27 billion, suggesting a 64.67% year-over-year increase.
For the third quarter, the company’s non-GAAP earnings are expected to be between $1.85 and $2.15 per share. The consensus mark for earnings is pegged at $2.03 per share, which has been unchanged over the past 30 days. This indicates growth of 138.82% on a year-over-year basis.
Teradyne, Inc. Price and Consensus
TER Trades at a Premium
Teradyne shares are currently overvalued, as suggested by its Value Score of D.
Teradyne stock is trading at a premium with a forward 12-month Price/Sales of 9.35X compared with the Computer & Technology sector’s 6.03X.
TER's Valuation
Image Source: Zacks Investment Research
What Should Investors Do With TER Stock?
Teradyne’s robust, diversified portfolio, which meets the rising demand for AI-driven technologies, is consistently contributing to its growth prospects. These factors have justified its premium valuation.
TER stock currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Cohu, Inc. (COHU) : Free Stock Analysis Report
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Teradyne Stock Plunges 15% in a Month: Should You Buy the Dip?

Applied Materials AMAT shares have climbed 72.5% year to date (YTD), outperforming the Zacks Computer and Technology sector and the Zacks Electronics - Semiconductors industry’s appreciation of 16.8% and 26.1%, respectively.
AMAT YTD Performance Chart
The rise in stock price has made AMAT stock trade at a premium. Currently, AMAT has a price-to-sales (P/S) multiple of 8.04X, which is much above the industry’s P/S of 4.96X. AMAT’s value score of D also suggests its overvaluation.
AMAT Forward 12-Month (P/S) Valuation Chart
Given the rise in share price and valuation combination, investors might ask: Should they buy, sell or hold the stock? Let’s discuss the fundamentals in detail.
AI and Capacity Expansion Trends Strengthen AMAT’s Growth
Applied Materials is well positioned to capitalize on AI-driven semiconductor demand as leading-edge foundry-logic, DRAM and advanced packaging are expected to account for around 80% of wafer fab equipment growth in 2026 and 2027. AMAT’s leadership in these areas, particularly HBM and 3D chiplet stacking, strengthens its exposure to rising AI computing requirements and fab capacity investments globally.
AMAT introduced six new chipmaking systems in the latest quarter, spanning DRAM and advanced packaging. Enhanced Centura Prime Epi targets faster, more power-efficient DRAM and HBM, while Producer Avila 2 supports higher-layer-count HBM. AMAT also introduced Opta Quad CMP, Nokota VMax 2 ECD, and new eBeam systems addressing demanding packaging, plating, metrology and defect-analysis requirements for advanced architectures and yield optimization across fabs.
As the opportunity broadens beyond equipment sales, chipmakers race to increase output and yield, benefiting wafer fabrication equipment manufacturers like AMAT. Applied Materials expects advanced packaging revenues to grow more than 70% in calendar 2026, while DRAM revenues, including HBM packaging, rose 52% year over year in the fiscal third quarter. Process diagnostics and control revenues are also expected to increase more than 50% this year overall through 2026.
Furthermore, Applied Global Services (AGS) adds an important recurring growth engine. AGS generated record third-quarter revenues of $1.78 billion, up 22% year over year, with gross margin reaching 35.6% and operating margin at 30.1%. Since more than 37,000 chambers are connected to AIx software, supporting AI-powered monitoring, diagnostics and predictive analytics, AGS is expected to grow above 20% in 2026 further and improve profitability.
Strong customer visibility further supports AMAT’s growth outlook. Most leading-edge logic and DRAM fabs are operating at full capacity, customers announced more than 10 new fab projects during the third quarter of fiscal 2026, and some forecasts extend to 2030. AMAT plans to double quarterly system output by 2028. Applied Materials’ fiscal fourth-quarter revenue guidance of $10.25 billion also signals accelerating momentum into 2027.
AMAT’s Broad Portfolio Helps it Challenge its Competitors
AMAT’s broad portfolio positions the company to capture a larger share of customer spending as semiconductor manufacturing becomes increasingly materials-intensive while also keeping its competitors like KLA Corporation KLAC, Lam Research LRCX and Camtek CAMT at bay. The breadth of Applied Materials' portfolio also reduces its dependence on any single semiconductor technology cycle and supports stronger pricing power.
KLA Corporation remains a dominant player in process control, wafer inspection and yield management solutions, while Camtek focuses on semiconductor inspection, metrology, advanced packaging and high-performance computing applications. Lam Research competes with Applied Materials across deposition and etch technologies, including advanced atomic layer deposition systems used in leading-edge semiconductor manufacturing.
All of these companies operate based on large capital expenditures. AMAT is particularly seeing strong customer visibility. Based on longer-term customer demand signals, the company opened its newest manufacturing center in Singapore during the quarter. AMAT is hiring and training manufacturing and customer-support personnel with the objective of doubling quarterly system output from current levels by 2028.
Continuous competitive environments require continued execution because customers can standardize around fewer toolsets or negotiate across broad equipment purchases. The competitive environment also pressures margin, but AMAT’s value-based pricing has supported its bottom line. For the fourth quarter of fiscal 2026, Applied Materials expects non-GAAP earnings of $4.02 per share (+/- 20 cents), indicating 85% year-over-year growth at the midpoint. The Zacks Consensus Estimate reflects year-over-year growth of 86.6%. The estimates have been revised upward in the past 30 days.
Conclusion: Buy AMAT Stock Now
AMAT’s broad portfolio, rising AI-driven WFE demand, expanding semiconductor equipment business and investments in manufacturing capacity support further growth. Therefore, investors should consider buying AMAT stock for long-term growth potential. Given these factors, we suggest investors accumulate this Zacks Rank #2 (Buy) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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This article originally published on Zacks Investment Research (zacks.com).

Should You Buy, Sell or Hold AMAT Stock After a 72.5% YTD Rise?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $288.5 million dollar outflow -- that's a 0.3% decrease week over week (from 354,440,000 to 353,450,000). Among the largest underlying components of QQQM, in trading today KLA Corp (Symbol: KLAC) is trading flat, Linde PLC (Symbol: LIN) is up about 0.3%, and SanDisk Corp (Symbol: SNDK) is lower by about 0.1%. For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average:
Looking at the chart above, QQQM's low point in its 52 week range is $228.75 per share, with $308.21 as the 52 week high point — that compares with a last trade of $291.95. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further QQQM Research:

Notable ETF Outflow Detected - QQQM, KLAC, LIN, SNDK

The S&P 500 Index ($SPX) (SPY) closed down by -0.71% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.79%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.29%. E-mini S&P futures (ESU26) fell -0.71%, and September E-mini Nasdaq futures (NQU26) fell -1.25%.
Stock indices retreated on Tuesday, with the S&P 500 falling to a 4-week low, the Dow Jones Industrials sliding to a 1-month low, and the Nasdaq 100 posting a 1-week low. Stocks fell as surging oil prices boosted inflation expectations and bond yields and ramped up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify over persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields sparked a retreat in chipmakers and AI-infrastructure stocks on Tuesday.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Tuesday’s global bond sell-off pushed bond yields to multi-year highs and undercut stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Stocks maintained their losses on Tuesday amid weaker-than-expected US economic news, including Aug ISM manufacturing, July construction spending, and July JOLTS job openings.
The US Aug ISM manufacturing index fell -1.0 to 54.6, weaker than expectations of 55.2. The Aug ISM prices paid sub-index was unchanged at 71.1, stronger than expectations of a decline to 70.8.
US July construction spending fell by -0.5% m/m, weaker than expectations of no change.
The US July JOLTS job openings unexpectedly rose +89,000 to 7.271 million from a downward-revised 7.182 million in June, weaker than expectations of 7.313 million.
Hawkish comments on Tuesday from Fed Governor Michael Barr were bearish for stocks and bonds when he said, "If inflation appears not to be moderating sufficiently, then I think we should act decisively to raise interest rates."
Oct WTI crude oil prices (CLV26) surged more than +5% on Tuesday to a 6-week high as Middle East hostilities escalated. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran.
Crude prices raced to their highs Tuesday afternoon when the US launched a fresh wave of strikes against targets in Iran in retaliation for Iran trying to put mines in the Strait of Hormuz and for earlier strikes on a US military base in Jordan. Iran said it retaliated with a “decisive operation” against US bases in the Middle East.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 487 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 69% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled lower on Tuesday. The Euro Stoxx 50 fell to a 1-month low and closed down -0.80%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -9 ticks on Tuesday. The 10-year T-note yield rose +4.2 bp to 4.792%. T-notes dropped to a 1.75-year nearest-futures low on Tuesday, and the 10-year T-note yield rose to a 1.75-year high of 4.798%. T-notes were under pressure from Tuesday’s +5% surge in WTI crude oil prices to a 6-week high, which boosted inflation expectations and is hawkish for Fed policy. The 10-year breakeven inflation rate rose to a 1.5-week high of 2.360% on Tuesday. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 69% on Tuesday from 36% before he spoke.
Losses in T-notes were limited on Tuesday amid weaker-than-expected US economic news on Aug ISM manufacturing, July construction spending, and July JOLTS job openings that sparked some short covering in T-notes.
European government bond yields moved higher on Tuesday. The 10-year German bund yield rose to a 15-year high of 3.364% and finished up +2.0 bp to 3.344%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and finished up +15.7 bp to 5.220%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated on Tuesday amid the surge in bond yields. Lam Research (LRCX), Applied Materials (AMAT), KLA Corp (KLAC), ARM Holdings Plc (ARM), and Texas Instruments (TXN) closed down more than -3%. Also, Advanced Micro Devices (AMD), Microchip Technology (MCHP), ASML Holding NV (ASML), Micron Technology (MU), Analog Devices (ADI), and Qualcomm (QCOM) closed down more than -2%.
Cybersecurity stocks sold off on Tuesday, weighing on the broader market. CrowdStrike Holdings (CRWD) closed down more than -7%, and Cloudflare (NET) and SentinelOne (S) closed down more than -6%. Also, Palo Alto Networks (PANW), Fortinet (FTNT), and Zscaler (ZS) closed down more than -5%, and Okta (OKTA) closed down more than +4%.
Cryptocurrency stocks moved lower on Tuesday after Bitcoin (^BTCUSD) fell more than -2%. Circle Internet Group (CRCL), Strategy (MSTR), Riot Platforms (RIOT), and Coinbase Global (COIN) closed down more than -6%. Also, MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY) closed down more than -4%.
Mining stocks fell on Tuesday as gold, silver, and copper prices slumped. Freeport-McMoRan (FCX) closed down more than -4%, and Hecla Mining (HL), Anglogold Ashanti (AU), Barrick Mining (B), and Southern Copper (SCCO) closed down more than -3%. Also, Coeur Mining (CDE) and Newmont Corp (NEM) closed down more than -2%.
Home builders and home supplies fell on Tuesday after the 10-year T-note yield rose to a 1.75-year high, raising mortgage rates and weighing on housing demand. Builders Firstsource (BLDR) closed down more than -5%, and DR Horton (DHI), Pulte Group (PHM), KB Home (KBH), Toll Brothers (TOL), and Home Depot (HD) closed down more than -2%. Also, Lennar (LEN) closed down more than -1%.
Defensive health insurance stocks moved higher on Tuesday, with the slump in the broader market. Humana (HUM) and CVS Health Corp (CVS) closed up more than +3%, and Elevance Health (ELV), Cardinal Health (CAH), the Cigna Group (CI), and Molina Healthcare (MOH) closed up more than +2%. Also, UnitedHealth Group (UNH) and Centene (CNC) closed up more than +1%.
Fervo Energy (FRVO) closed up more than +28% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) closed up more than +7% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) closed up more than +4% after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Earnings Reports (9/2/2026)
Broadcom Inc (AVGO), Brown-Forman Corp (BF/B), Five Below Inc (FIVE), Hewlett Packard Enterprise Co (HPE), NetApp Inc (NTAP), Ollie's Bargain Outlet Holding (OLLI), PVH Corp (PVH), Snowflake Inc (SNOW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Settle Lower as Bond Yields Surge

The S&P 500 Index ($SPX) (SPY) is down by -0.44% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.96%. E-mini S&P futures (ESU26) are down -0.46%, and September E-mini Nasdaq futures (NQU26) are down -0.98%.
Stock indices are trading lower today, with the S&P 500 falling to a 4-week low and the Dow Jones Industrials and the Nasdaq 100 posting 1-week lows. Stocks are sliding as rising oil prices boost inflation expectations and ramp up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify about persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields have sparked a retreat in chipmakers and AI-infrastructure stocks today.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s global bond sell-off has pushed bond yields to multi-year highs and is undercutting stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Stocks maintained their losses today on weaker-than-expected US economic news, including Aug ISM manufacturing, July construction spending, and July JOLTS job openings.
The US Aug ISM manufacturing index fell -1.0 to 54.6, weaker than expectations of 55.2. The Aug ISM prices paid sub-index was unchanged at 71.1, stronger than expectations of a decline to 70.8.
US July construction spending fell -0.5% m/m, weaker than expectations of no change.
The US July JOLTS job openings unexpectedly rose +89,000 to 7.271 million from a downward revised 7.182 million in June, weaker than expectations of 7.313 million.
Hawkish comments today from Fed Governor Michael Barr were bearish for stocks and bonds when he said, "If inflation appears not to be moderating sufficiently, then I think we should act decisively to raise interest rates."
Oct WTI crude oil prices (CLV26) are up more than +2% today to a 6-week high as Middle East hostilities escalate. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-month low and is down -0.73%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -4 ticks today. The 10-year T-note yield is up +1.2 bp to 4.762%. T-notes dropped to a 1.75-year nearest-futures low today, and the 10-year T-note yield rose to a 1.75-year high of 4.796%. T-notes are under pressure from today’s +2% jump in WTI crude oil prices to a 6-week high, which boosts inflation expectations and is hawkish for Fed policy. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% today from 36% before he spoke.
T-notes recovered from their worst level today after weaker-than-expected US economic news on Aug ISM manufacturing, July construction spending, and July JOLTS job openings sparked short covering in T-notes.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 15-year high of 3.364% and is up +0.8 bp to 3.332%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and is up +13.6 bp to 5.199%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are retreating today amid the surge in bond yields. Qualcomm (QCOM), Lam Research (LRCX), Advanced Micro Devices (AMD), and KLA Corp (KLAC) are down more than -3%, and Applied Materials (AMAT), Analog Devices (ADI), Microchip Technology (MCHP), Marvel Technology (MRVL), ASML Holding NV (ASML), and Texas Instruments (TXN) are down more than -2%.
Cybersecurity stocks are weaker today, weighing on the broader market. CrowdStrike Holdings (CRWD) is down more than -6% to lead losers in the S&P 500 and the Nasdaq 100. Also, Palo Alto Networks (PANW) and SentinelOne (S) are down more than -5%, and Okta (OKTA), Fortinet (FTNT), and Zscaler (ZS) are down more than -4%, and Cloudflare (NET) is down more than +3%.
Cryptocurrency stocks are sliding today, with Bitcoin (^BTCUSD) down nearly -1%. Riot Platforms (RIOT) is down more than -5%, and Circle Internet Group (CRCL) and MARA Holdings (MARA) are down more than -3%. Also, Coinbase Global (COIN), Galaxy Digital Holdings (GLXY), Strategy (MSTR), and Iren Ltd (IREN) are down more than -2%.
Defensive health insurance stocks are climbing today, with the slump in the broader market. Humana (HUM) and CVS Health Corp (CVS) are up more than +3%, and Elevance Health (ELV), Centene (CNC), Cardinal Health (CAH), the Cigna Group (CI), and Molina Healthcare (MOH) are up more than +2%. Also, UnitedHealth Group (UNH) and Universal Health Services (UHS) are up more than +1%.
Amazon.com (AMZN) is down more than -2% to lead losers in the Dow Jones Industrials after the US Federal Trade Commission and a group of US states sued the company over claims it overcharged advertisers by more than $20 billion since 2019.
Fervo Energy (FRVO) is up more than +23% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) is up more than +5% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) is up more than +3% to lead gainers in the S&P 500 after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Global Bond Selloff Weighs on Stocks

The S&P 500 Index ($SPX) (SPY) is down by -0.66% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.30%. E-mini S&P futures (ESU26) are down -0.66%, and September E-mini Nasdaq futures (NQU26) are down -1.26%.
Stock indices are trading lower today, with the S&P 500 falling to a 4-week low and the Dow Jones Industrials and the Nasdaq 100 posting 1-week lows. Stocks are sliding as rising oil prices boost inflation expectations and ramp up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify about persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields have sparked a retreat in chipmakers and AI-infrastructure stocks today.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s global bond sell-off has pushed bond yields to multi-year highs and is undercutting stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Oct WTI crude oil prices (CLV26) are up more than +2% today to a 6-week high as Middle East hostilities escalate. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-month low and is down -0.61%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -7 ticks today. The 10-year T-note yield is up +3.2 bp to 4.782%. T-notes dropped to a 1.75-year nearest-futures low today, and the 10-year T-note yield rose to a 1.75-year high of 4.796%. T-notes are under pressure from today’s +2% jump in WTI crude oil prices to a 6-week high, which boosts inflation expectations and is hawkish for Fed policy. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% today from 36% before he spoke.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 15-year high of 3.364% and is up +1.7 bp to 3.341%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and is up +15.4 bp to 5.217%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are retreating today amid the surge in bond yields. Qualcomm (QCOM) is down more than -4%, and Marvel Technology (MRVL) and Intel (INTC) are down more than -3%. Also, Advanced Micro Devices (AMD), Applied Materials (AMAT), Analog Devices (ADI), Lam Research (LRCX), Microchip Technology (MCHP), NXP Semiconductors (NXPI), Broadcom (AVGO), KLA Corp (KLAC), Micron Technology (MU), and Texas Instruments (TXN) are down more than -2%. In addition, Nvidia (NVDA) is down more than -2% to lead losers in the Dow Jones Industrials.
Mining stocks are falling today, with the slump in gold, silver, and copper prices. Hecla Mining (HL) is down more than -4%, and Coeur Mining (CDE) is down more than -3%. Also, Newmont Corp (NEM), Anglogold Ashanti (AU), Barrick Mining (B), and Freeport-McMoRan (FCX) are down more than -2%, and Southern Copper (SCCO) is down more than -1%.
Cryptocurrency stocks are sliding today, with Bitcoin (^BTCUSD) down more than -1%. Circle Internet Group (CRCL) is down more than -69%, and Coinbase Global (COIN), Galaxy Digital Holdings (GLXY), Strategy (MSTR), Iren Ltd (IREN), MARA Holdings (MARA), and Riot Platforms (RIOT) are down more than -5%.
Cybersecurity stocks are weaker today, weighing on the broader market. Palo Alto Networks (PANW), SentinelOne (S), and Zscaler (ZS) are down more than -3%, and , CrowdStrike Holdings (CRWD) and Cloudflare (NET) are down more than +2%. Also, Okta (OKTA) and Fortinet (FTNT) are down more than -1%.
Defensive health insurance stocks are climbing today, with the slump in the broader market. Elevance Health (ELV), Centene (CNC), Humana (HUM), Cardinal Health (CAH), and CVS Health Corp (CVS) are up more than +2%. Also, UnitedHealth Group (UNH), the Cigna Group (CI), and Molina Healthcare (MOH) are up more than +1%.
Fervo Energy (FRVO) is up more than +10% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) is up more than +6% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) is up more than +3% to lead gainers in the S&P 500 after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Medtronic Plc (MDT) is up more than +2% after reporting Q1 revenue of $9.76 billion, stronger than the consensus of $9.54 billion, and raising its 2027 organic revenue forecast to +7.25% to +7.75% from a previous forecast of +6.75% to +7.25%.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Retreat as Global Bond Yields Surge

Kimball Electronics, Inc. KE ended fiscal 2026 on a soft note, with fourth-quarter earnings falling sharply year over year and missing expectations. Revenues also declined from the prior-year period, reflecting continued weakness in some of the company’s key end markets.
However, the headline numbers apparently fail to reflect the inherent growth potential. Improving cash flow, a healthier balance sheet, strong momentum in Medical and expectations for a return to organic growth in fiscal 2027 suggest that Kimball’s underlying business is moving in the right direction. Let us dig a little deeper into the underlying factors.
Q4 Performance Falls Short
Kimball reported an adjusted loss of 1 cent per share for the fiscal fourth quarter against earnings of 34 cents in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of earnings of 40 cents.
Quarterly revenues of $371.6 million declined 2.3% year over year. Automotive revenues fell 3%, while Industrial sales decreased 5%. Medical revenues, however, increased 1% and remained the strongest-performing end market. Adjusted operating income declined to $18.1 million from $19.6 million a year ago, while the adjusted operating margin contracted 30 basis points to 4.9%.
However, revenues increased 5% sequentially, with all three end markets improving from the fiscal third quarter. Management also noted that adjusted operating income exceeded its internal expectations. This suggests that operating trends may be stabilizing even though year-over-year comparisons remain challenging.
Kimball has declined 18.7% in the past year against the industry’s growth of 53.2%. It has lagged peers like KLA Corporation KLAC and Garmin Ltd. GRMN. While GRMN has gained 18%, KLAC soared 101.3% over this period.
One-Year KE Stock Price Performance
Image Source: Zacks Investment Research
Medical Market: KE’s Key Growth Driver
Kimball’s growing exposure to the Medical market remains one of the biggest positives in its investment story. Medical revenues totaled $412.8 million in fiscal 2026 and represented 29% of total sales, up from 27% in fiscal 2025. Management expects Medical to account for more than one-third of revenues in fiscal 2027.
The recently completed acquisition of Helvoet Polymer Technologies should accelerate this shift. Helvoet expands Kimball’s capabilities in precision molding and manufacturing for applications such as diagnostics, microfluidics and drug delivery. The business is expected to contribute approximately $60 million in fiscal 2027 revenues and be accretive to adjusted earnings. The acquisition also broadens Kimball’s medical manufacturing footprint across Europe and India while creating potential cross-selling opportunities with existing customers.
At the same time, the company continues to invest in its new medical manufacturing facility in Indianapolis. Initial production is expected toward the end of calendar 2026. These should strengthen Kimball’s positioning in the high-growth Medical market and reduce its dependence on Automotive over time.
Fiscal 2027 Outlook Points to Recovery
Management’s fiscal 2027 guidance provides another reason for optimism. Kimball expects revenues between $1.535 billion and $1.56 billion, implying growth of 7-9% from fiscal 2026. Organic revenues are projected to increase 3-5%.
Medical organic sales are expected to grow at a high-single-digit to low-double-digit rate, while Industrial revenues should increase roughly in line with overall organic growth. Automotive revenues, however, are expected to remain almost flat.
Nevertheless, the overall outlook indicates that Kimball could return to sustainable top-line growth after a difficult fiscal 2026.
Cash Flow and Balance Sheet Lend Support
Kimball’s improving financial position strengthens the bullish argument. Cash generated from operations totaled $42.4 million in the fiscal fourth quarter, marking the company’s 10th consecutive quarter of positive operating cash flow. Cash conversion days improved to 82, the best level in 17 quarters.
Kimball ended June with $88.9 million in cash, while debt declined to $116.6 million, its lowest level in more than four years. The Helvoet acquisition will increase leverage somewhat, but the significant balance sheet improvement in fiscal 2026 gave management more flexibility to fund strategic growth investments.
Is KE Stock Worth Buying?
Kimball entered fiscal 2027 with considerable momentum. Strong medical market revenue provides a secular growth avenue, while inorganic growth is likely to gain steam.
The upbeat fiscal outlook adds further visibility to the growth story. Investors seeking exposure to the rapidly expanding electronics ecosystem may consider betting on KE for long-term upside.
KE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Indicator	TTM Median
P/E	46.60 34.68
Price/Sales	16.61 2.81
P/B	40.99 3.02
P/FCF	56.43 23.22

Indicator	TTM Median
ROE	85.39 13.98
ROA	28.47 6.72
ROI	41.85 10.13
Net Worth	224.72 1.05
Quick Ratio	2.11 1.56
Current Ratio	2.88 1.88

Indicator	TTM Median
Net Profit Margin	35.66 10.17
Operating Margin	41.69 10.71
Gross Margin	61.30 50.00
Return on tangible equity	136.37 26.33

Indicator	TTM Median
EPS	1.05 0.36
EPS Forecast	1.00 0.25
Revenue	3.66B 67.00M
Gross Profit	2.24B —
EBITDA	1.51B —

KLA Corporation

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