Applied Materials shares climbed 13% to $372.26 after the company issued a sales forecast that outpaced Wall Street estimates. Management attributed the optimistic outlook to a surge in demand for semiconductor equipment, fueled by the rapid expansion of artificial intelligence infrastructure. Similarly, Arista Networks reported revenue that surpassed expectations, sending its stock up 16% to $156.39 as cloud providers continue to upgrade networking hardware.

Divergent Paths in Growth and Advertising

The momentum did not extend to the consumer tech and gaming sectors. DraftKings saw its shares slide 15% to $21.50 after providing a full-year outlook that fell short of analyst projections. The company indicated it plans to increase spending on prediction markets, a strategic shift that appears to have raised concerns regarding near-term margins.

Meanwhile, Pinterest continues to grapple with a challenging macroeconomic environment. The visual discovery platform reported that a pullback from advertisers weighed heavily on its latest quarterly revenue. Consequently, Pinterest shares shed 17% to $15.40 in late trading, highlighting the ongoing volatility in the digital advertising space and the cautious stance of major brands.