Updated from May 18 Applied Materials ( AMAT ) swung solidly into the black in its fiscal second quarter, exceeding Wall Street 's expectations for the second quarter in a row. Applied's stock was recently up 29 cents, or 1.5%, to $19.14. Despite the company's standout report and the stock's gains, UBS downgraded its recommendation on AMAT to neutral from buy Wednesday morning. (UBS simultaneously downgraded several other chip equipment makers, including Novellus undefined and Veeco Instruments ( VECO ) .) After the close Tuesday, Applied Materials posted earnings of $373.35 million, or 22 cents a share, in its quarter ended May 2. In the year-ago period, the company lost $62.13 million, or 4 cents a share. "Investment in 300 millimeter semiconductor equipment for leading-edge technology, combined with capacity purchases of our 200 millimeter systems, drove Applied Materials' strong revenue and order growth this quarter," the company said in a press release.