Fast Money Blog- 2/13/26

In the short term it looks as if Wall Street is continuing to punish tech stocks for their future cap-ex spending. 

However, there is one company that just released their earnings that is bucking that trend. 

On Thursday, Feb. 12th, Applied Materials, Inc. (AMAT) released its Q1 2026 earnings report, with top-line revenue of $7.01 billion, down a modest 2% year-over-year, but nonetheless better than Wall Street expected. 

Despite the revenue dip, the stock jumped significantly post earnings.

Tyrone, why would this happen?

Let me explain. The real win for the company was that their quarterly profit rose 70% to $2.03 billion. Wall Street has rewarded AMAT for its improved profitability and their strong forward guidance. As the leader in semiconductor equipment, AMAT is in a great position to profit from the massive amount of AI-related spending, which is driving the need for their higher performance and more energy-efficient chips. Because of this AMAT The company expects their semiconductor equipment business to grow over 20% in 2026.



What strikes me as interesting is that AMAT didn't comment on future cap-ex spending, which as we have seen leaves a sour taste in the mouth of institutional investors. 

This is because AMAT doesn’t have to spend anything on Cap-Ex, as they provide the semiconductors that the other tech companies are spending so much money on.

If you intend to trade tech stocks in the next 6 months, here’s what you need to know:

There will be wild swings in volatility, both up and down. However, advanced traders know how to use volatility to their advantage by purchasing both put and call options, and profiting from volatility on a regular basis.

If you haven’t already, you’ll need to move your trading skills to the next level and learn how to volatility trade shares, set up straddles, and sell front month calls for income against existing LEAPS.

Tyrone Jackson

The Wealthy Investor