Applied Materials Earnings Put Chip Stocks in Focus 12/11/2026
Market Wrap
Wall Street rallied Wednesday as investors returned to growth shares following a volatile start to the week. Upbeat corporate results helped restore risk appetite, while the Veterans Day closure of the U.S. bond market kept Treasury yields out of the spotlight.
The S&P 500 rose 1.31% to 7,619.38, the Nasdaq Composite climbed 1.60% to 25,466.19, and the Dow Jones Industrial Average added 254.60 points, or 0.49%, to 52,486.49. The Russell 2000 gained 0.88% to 2,846.26.
Technology led the advance, with the S&P 500 information technology sector gaining about 2.7%. CoreWeave (CRWV) climbed nearly 25% after its earnings report, encouraging renewed buying in cloud infrastructure and semiconductor shares.
The rebound extended beyond a single stock. Semiconductor and computing-related names strengthened, while investors continued to weigh whether demand for AI infrastructure can justify heavy capital spending and borrowing.
Market leadership remained uneven, however, and after-hours company news highlighted how quickly sentiment could shift. Investors are balancing improving earnings expectations against uncertainty over corporate governance, financing costs and regulation.
The bond market was closed for Veterans Day, temporarily removing Treasury-yield moves from the session. Investors remain concerned that persistent inflation could prompt additional Federal Reserve rate hikes and raise financing costs for AI projects.
Energy prices also moved higher amid renewed concerns about Middle East shipping routes. With the S&P 500 still below its recent high, traders are looking for evidence that Wednesday's advance can extend beyond a short-term relief rally.
Thursday brings weekly U.S. jobless claims at 8:30 a.m. ET and existing-home sales at 10:00 a.m. ET. Earnings from Nebius and Brookfield before the bell, followed by Cisco and Applied Materials after the close, could drive individual stocks.
Nvidia Leadership Reports Rattle the AI Trade
Nvidia (NVDA) shares plunged more than 8% in Wednesday's extended session after media reports said its board was considering removing CEO Jensen Huang. The prospect of a leadership change unsettled investors in one of the most influential companies in artificial intelligence.
The Wall Street Journal reportedly said directors were preparing to meet Wednesday to discuss Huang's future. The reports followed Nvidia's weekend announcement of an independent board inquiry into whether its chief executive had been targeted in a possible foreign-intelligence scheme.
Separate media reports described alleged personal relationships involving Huang, including one with a company executive. Those reports and the intelligence-related suspicions have not been established as findings of misconduct; the board's investigation remains ongoing.
Nvidia previously said Huang would remain CEO and cooperate with the inquiry. The company also said it had not identified evidence that confidential information or national-security matters had been compromised. No formal board decision was confirmed in the material available.
Analysts warned that Nvidia faces unusual leadership concentration risk because Huang co-founded the company and remains central to its product strategy, customer relationships and investor confidence. Uncertainty could weigh on the stock even without an immediate management change.
The controversy also raises questions about chip-export controls and Nvidia's relationships with overseas cloud customers. Any regulatory review could persist independently of the board's decisions and affect the broader AI supply chain.
Advanced Micro Devices (AMD) and Broadcom (AVGO) gained in after-hours trading as investors considered whether rivals might benefit from disruption at Nvidia. Traders will watch for official company statements, regulatory developments and the board's conclusions.
Stocks on the Move
- CoreWeave (CRWV): Shares surged nearly 25% after the company reported third-quarter revenue of $3.66 billion, above expectations, and raised its full-year outlook.
- Nebius Group (NBIS): Shares climbed roughly 16% as buying returned to companies providing cloud-computing capacity for AI workloads.
- Sandisk (SNDK): Shares gained nearly 14%, benefiting from renewed demand for memory and data-storage names.
- Arm Holdings (ARM): Shares advanced about 12% as chip-design stocks joined the broader semiconductor recovery.
- Digi International (DGII): Shares fell roughly 14% after hours following its fiscal fourth-quarter earnings release.
- Tetra Tech (TTEK): Shares rose about 10% in extended trading following its earnings announcement, reversing an earlier decline.
Watchlist: NVDA, CRWV, NBIS, AMD, AVGO, ARM, SNDK, AMAT, CSCO, DGII, TTEK, MU, COHR, VRT, SPCX, TSLA, RKLB, LUNR
Key Economic Events Today
Economic Data (ET)
- 08:30 AM — USD Initial Jobless Claims, Continuing Jobless Claims
- 10:00 AM — USD Existing Home Sales
- 01:00 PM — USD 30-Year Treasury Bond Auction
Earnings
Before Market Open: Brookfield Corporation (BN), Nebius Group (NBIS), Intuitive Machines (LUNR), Enovix Corporation (ENVX)
After Market Close: Cisco Systems (CSCO), Applied Materials (AMAT), Nu Holdings (NU), Cerebras Systems (CBRS)
