Key Highlights

● Applied Materials soared ahead of its Thursday, November 12 earnings.

● Lam Research jumped and KLA closed sharply higher.

● Teradyne also rose.

● ASML got a lift from reports on Elon Musk's Terafab plans.

Every chip in every AI server starts in a factory filled with deposition, etching, inspection and testing equipment. On Monday, November 9, 2026, the companies that make that gear powered one of the biggest semiconductor rallies of the year.

Applied Materials (NASDAQ:AMAT) soared, according to news reports, ahead of its Earnings report on Thursday, November 12. Lam Research (NASDAQ:LRCX) jumped, reports said, and KLA (NASDAQ:KLAC) closed sharply higher, according to market coverage. Teradyne (NASDAQ:TER) rocketed, according to market reports, and materials supplier Entegris (NASDAQ:ENTG) surged as well. ASML Holding (NASDAQ:ASML), the Dutch maker of advanced lithography machines, traded at $1,509.45 in the afternoon, according to market data.

The PHLX Semiconductor index rocketed to 10,033.93, its best session since July 30.

From wreckage to rebound

The bounce followed a brutal stretch. The semiconductor index plunged on Thursday, November 5, reports said, as investors feared the new Democratic majorities in Congress could curb US data-center construction. It recovered some ground on Friday, then took off on Monday.

Market data described the equipment rally as a rebound from the post-election slump over AI data-center construction worries, with most names moving with the sector rather than on company-specific news. Strategists pointed to cleaned-out positioning and forced hedging by Options dealers, which can magnify moves in both directions.

A few company catalysts

There were some specific drivers. Entegris' board authorized a $500 million share repurchase program, according to news reports. ASML got a lift from a weekend report that Elon Musk's planned Terafab chip factory is targeting about one million wafers a month by 2032, mostly memory, which was said would be positive for Demand for ASML's extreme-ultraviolet machines.

The broader AI-chip trade helped too. Advanced Micro Devices (NASDAQ:AMD) soared after an Oppenheimer upgrade, and Micron Technology (NASDAQ:MU) closed up $43.15 at $733.15, according to market coverage. Nvidia (NASDAQ:NVDA) was the outlier, sliding amid an independent review by its board involving CEO Jensen Huang.

Why Applied Materials matters now

Applied Materials' report will be one of the first major looks at whether chipmakers are still ordering tools at a rapid pace after the AI wobble, so its outlook is widely watched as a read on spending plans across the industry.

The backdrop is mixed. Goldman Sachs sees AI capex growth peaking, while FactSet says information technology earnings are growing by more than two-thirds from a year earlier, led by semiconductors. Trade policy also matters for the group; reports said that China extended its Tariff truce with the US to January.

Applied Materials Sets the Tone

On Thursday, investors will focus on Applied Materials' guidance for the current quarter, any comments on China and its view of demand for AI-related chips and advanced memory. Cisco reports the same day, adding a read on data-center networking. Investors will also compare Applied's comments with the orders commentary from Lam Research and KLA, whose own shares now carry a lot of renewed optimism after Monday's surge. The following week, Nvidia's November 17 results will shape the outlook for the entire Supply chain. Before any of that, Tuesday's October Consumer Price Index could influence rate expectations; futures markets heavily favor a Federal Reserve hike in December, which tends to weigh on high-valuation tech shares.