In this articleAMAT your favorite stocksCREATE FREE ACCOUNTwatch now2:5102:51Applied Materials weighs on chipsSquawk on the StreetApplied Materials s plunged14% after the semiconductor equipment maker issued weak guidance as it faces demand pressures in China.The company forecast adjusted earnings per of $2.11, falling short of the $2.39 per expected by LSEG.
The company jected $6.7 billion in revenue, versus the $7.34 billion estimate.During an earnings call with analysts, CEO Gary Dickerson said that the current macroeconomic backdrop and trade issues have fueled "increasing uncertainty and lower visibility," primarily within its China .He also said the guidance does not account for pending export license applications and assumes a significant backlog.Read more CNBC newsGoogle faces loss of Chrome as Perplexity bid adds drama to looming breakup decisionAmazon launches same-day dery of meat, eggs, duce in more than 1,000 citiesCoreWeave tanks 20% after posting wider-than-expected loss ahead of lock-up expirationHow Big is paying its way out of Trump's tariffsApplied Materials also cited weakness from leading-edge customers and said China clients are easing spending after rapidly ramping up equipment manufacturing in the region.Bank of America's Vivek Arya downgraded s to a neutral rating and lowered his price target, citing China and leading-edge headwinds."The uncertainty could persist, making it tougher for the stock to outperform despite reasonable valuation," he wrote.
"We suspect the slowdown is more company specific."Despite the weak guidance, Applied Materials topped third-quarter earnings and revenue estimates, posting adjusted earnings of $2.48 per on $7.3 billion in revenue.
Net income reached $1.78 billion, or $2.22 a , versus $1.71 billion, or $2.05 a , a year ago.Don’t miss these insights from CNBC Forget Palantir.
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