Applied Materials

Applied Materials presented ambitious targets at SEMICON West: adjusted gross margin around 54% and operating margin about 40% by 2030; market share in the equipment market is expected to grow by more than two percentage points between 2025 and 2030, and the service business should exceed $12 billion. The stock then dropped 6.7% and closed at about $464 after the company did not provide a concrete growth path for the equipment market. Investors are skeptical given the high valuation (around 25-times expected P/E) and the lack of a market forecast; technical supports lie at about $436 (200-day line) and around $420 (September low). Quarterly results on November 12 should clarify whether the margin targets are realistic. » More on deraktionaer.de

U.S. indices slipped, weighed down by weak tech names and mixed quarterly results. Applied Materials was the laggard in the Nasdaq 100, losing almost eight percent after the company at its investor day issued only a vague forecast without concrete figures for wafer-fab equipment. Reports of technological advances by Chinese memory-chip makers additionally put selling pressure on Seagate, SanDisk and Micron. » More on finanzen.net

Applied Materials has opened the EPIC Center in Sunnyvale, the largest research center for chip manufacturing technology. Founding partners are TSMC, Intel, Samsung, Micron and SK Hynix; the announced up-to $5 billion will be disbursed gradually as customer projects ramp up. In the short term the lab does not generate revenue, and investors expect concrete orders to appear with the quarterly results in mid-November. Technically the stock is trading near support at around $487; resistance sits at the downtrend line near $547. Today management is presenting its plans at SEMICON West via livestream. » More on deraktionaer.de