Applied Materials is a leading provider of equipment, services, and software for the semiconductor and display manufacturing industries
The company specializes in a range of technologies that enable the fabrication of advanced materials and components, crucial for powering devices such as smartphones, tablets, and computers. Through its innovative solutions, Applied Materials helps manufacturers improve their production processes, enhance the performance of their products, and drive advancements in electronics, renewable energy, and other high-tech sectors. The company's commitment to research and development positions it at the forefront of the ever-evolving landscape of materials engineering and chip manufacturing.
Shares of Applied Materials are trading higher by 2.6% during Wednesday's session. Investors anticipate Q4 earnings from NVIDIA after the market close.
Semiconductors are the silicon backbone of the digital revolution. But they’re also susceptible to economic fluctuations as chip demand will ebb and flow with capital spending.
Unfortunately, the market seems to be predicting a downturn as the industry has tumbled by 8.4% over the past six months. This performance is a far cry from the S&P 500’s 6% ascent.
In a move to further tighten the noose on China's burgeoning tech sector, President Donald Trump is reportedly considering stricter measures on the country's semiconductor industry. This move is seen as an extension of efforts initiated under the Joe Biden administration to curb China's technological advancement.
Shares of semiconductor machinery manufacturer Applied Materials (NASDAQAMAT)
fell 6.8% in the afternoon session after the company reported mixed fourth quarter results: Its revenue guidance for next quarter slightly missed and its inventory levels slightly increased. The company also acknowledged "export control-related headwinds" during its earnings release, highlighting the significance of the recent trade war and tariffs on its business and likely raising further concern among cautious investors.
Let's have a look at what is happening on the US markets in the middle of the day on Friday. Below you can find the top S&P500 gainers and losers in today's session.
Analysts revised price targets for Applied Materials after Q1 results, beating estimates on revenue and EPS, but Q2 guidance fell short. Buy-rated with price targets of $195, $217, and $225.
Semiconductor machinery manufacturer Applied Materials (NASDAQAMAT) met Wall Street’s revenue expectations in Q4 CY2024, with sales up 6.8% year on year to $7.17 billion. On the other hand, next quarter’s revenue guidance of $7.1 billion was less impressive, coming in 0.8% below analysts’ estimates. Its non-GAAP profit of $2.38 per share was 3.7% above analysts’ consensus estimates.
