Why Applied Materials Stock Is Trading Higher Monday

Applied Materials, Inc. AMAT shares are trading higher by 2.7% at $143.65 Monday afternoon in sympathy with ON Semiconductor, which reported better-than-expected second-quarter EPS and sales results.

ON Semiconductor reported quarterly earnings of 63 cents per share which beat the analyst consensus estimate of 49 cents per share.

ON Semiconductor also reported quarterly sales of $1.67 billion which beat the analyst consensus estimate of $1.62 billion.

Applied Materials is the world's largest supplier of semiconductor manufacturing equipment, providing materials engineering solutions to help make nearly every chip in the world.

The firm's systems are used in nearly every major process step with the exception of lithography. Key tools include those for chemical and physical vapor deposition, etching, chemical mechanical polishing, wafer- and reticle-inspection, critical dimension measurement and defect-inspection scanning electron microscopes.

Applied Materials has a 52-week high of $146 and a 52-week low of $54.15.