August 19 Stock Market Report: Applied Materials and Micron Rise... Big Tech Flat

Applied Materials Edges Higher... Semiconductor Equipment Stocks Rally While Big Tech Remains Flat

Major U.S. stocks showed mixed performance on August 18, 2026. Applied Materials closed at $535.31, up 0.06% from the previous day, while Micron rose 0.04% to $1,011.75. Meanwhile, Microsoft edged down 0.03% to $480.35, showing only slight weakness. By market capitalization, NVIDIA maintained the top spot at $54.5 trillion, followed by Apple ($44.6 trillion) and Alphabet ($42.1 trillion).

Major Stock Price Movements

Ticker	Price	Change	Market Cap	PER
Applied Materials	$535.31	+0.06%	$0.43T	46.1
Micron	$1,011.75	+0.04%	$1.14T	22.9
LAM Research	$343.84	+0.03%	$0.43T	59.5
ASML	$1,883.12	+0.02%	$0.72T	64.1
Microsoft	$480.35	-0.03%	$3.57T	26.7
Meta	$568.97	-0.04%	$1.45T	21.4
AMD	$506.00	-0.02%	$0.83T	131.4

Most stocks moved within a narrow range of 0.1%, but the direction was clearly divided. Gainers were concentrated in semiconductor equipment and memory-related stocks such as Applied Materials, Lam Research, ASML, and Micron. In contrast, decliners included Meta, Microsoft, and AMD. NVIDIA ($225.01) and Apple ($305.59) effectively remained flat.

Key Analysis: Supply-Demand Repricing in Semiconductor Value Chain

The core of the day's trend was the divergence within the semiconductor industry based on the value chain. The simultaneous rise in equipment stocks Applied Materials, Lam Research, and ASML is interpreted as reflecting expectations for expanded fab (fabrication plant) investment. Notably, Applied Materials securing a slight additional rise from the previous day's close of $507.18—a jump of over 5%—is read as a signal that buying power remains valid.

Micron's performance is also noteworthy. Following a surge of over 4% from the previous day's $971.66, it marked a second consecutive day of gains. With a P/E ratio of 22.9, it is low among large-cap semiconductor stocks, suggesting the potential for significant earnings leverage in a rising memory price environment. The fact that its market cap of $1.14 trillion is narrowing the gap with Alphabet and Amazon is also significant.

On the other hand, Meta's EPS growth rate of -256.0% is a point of focus. While a P/E of 21.4x does not pose a significant valuation burden, the undervaluation argument could lose its luster if the profit decline trend continues. Tesla sits in the most distorted valuation range among growth stocks with a P/E of 311.3x and an EPS growth rate of -4,709.0%.

Market Environment and Investment Implications

The macro environment is somewhat heavy. U.S. 30-year Treasury yields rose to 5.33%, the highest level since 2007, and coupled with Middle East risks, sentiment for risk assets remains subdued. According to a Yonhap News report, the KOSPI fell -1.6% and the KOSDAQ plunged -3.5% as a result. Rising long-term rates put relatively greater pressure on high-valuation stocks like Broadcom (65.4x) and ASML (64.1x) with P/E ratios exceeding 60.

Nevertheless, the defensive flow shown by semiconductor equipment and memory stocks suggests that expectations for structural demand remain valid. NVIDIA's P/E of 34.5x is considered discounted relative to its EPS growth rate of 6,599.3%. Similarly, Alphabet's P/E of 17.3x is the lowest among mega-caps, likely offering relative stability in a high-rate environment.

In the short term, interest rates and semiconductor order announcements are expected to determine the market direction. The potential for further gains in equipment stocks depends on fab investment announcements. If high interest rates persist, there is a possibility that funds could rotate toward low P/E stocks such as Alphabet, JPMorgan (P/E 15.5x), and Berkshire Hathaway (P/E 12.5x), which carry lower valuation burdens.