Applied Materials (AMAT) concluded the recent trading session at $217.51, signifying a +2.81% move from its prior day's close.
U.S. lawmakers seek broader restrictions on chipmaking equipment sales to China, spotlighting AMAT, LRCX, and KLAC after a major increase in Chinese purchases. A bipartisan report reveals Chinese semiconductor firms spent $38 billion on advanced machinery, fueling domestic chip capacity and AI ambitions despite export controls.
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Applied Materials Inc (NASDAQ:AMAT, ETR:AP2) shares slipped more than 3% in early trading on Friday after the maker of machinery used to manufacture semiconductors revealed in a regulatory filing that new US export restrictions to China would hurt its revenue. The company expects the decision will result in about $600 million of lost revenue in fiscal 2026, which runs through next October.
Semiconductor stocks have been impacted this year by evolving U.S. rules governing the sale of chips to China. Applied Materials just called out a fresh set of challenges.
Applied Materials rides DRAM strength and R&D push, but China headwinds, weak memory demand and rivals weigh on its outlook.
Shares of Applied Materials Inc (NASDAQ:AMAT) are up 2.8% to trade at $195.48 at last check, after Morgan Stanley Securities upgraded the stock to "overweight" and raised its price target to $209.
Applied Materials offsets soaring R&D with cost cuts, driving record gross margins and expanded operating profitability.
Applied Materials' etch business surpasses $1B in Q3 as DRAM demand for AI workloads fuels momentum and future market share gains.
Applied Materials' display segment surges on OLED demand, with Q4 revenues projected to soar 66% year over year.
Applied Materials (NASDAQ:AMAT) published a set of Q3 results that exceeded expectations last week, yet the stock has declined approximately 15% since the earnings announcement due to worries about future demand, especially from China. Although Applied is well-placed to gain from a higher proportion of advanced equipment linked to generative AI and next-generation process technologies, geopolitical factors seem to impede progress.
Applied Materials trades at a discount P/E, but China woes, weak memory demand and bearish trends cloud its outlook.