Applied Materials

CEO Gary Dickerson said at the Six Five Summit that AI will reshape the semiconductor industry in the long term and is driving high investment, faster innovation and new supply-chain bottlenecks. According to the company, about 80% of this year’s growth in wafer fabrication equipment is attributable to AI-relevant areas such as advanced logic, high bandwidth memory and advanced packaging; Applied Materials sees itself as a market leader in these segments. The services business is growing by roughly 20% annually, and the company is investing $5 billion in an EPIC Center to accelerate co-innovation and the market introduction of new computing architectures. » Más en de.investing.com

Applied Materials raised revenue in the third fiscal quarter to $9.12 billion (+25% year-on-year) and reported adjusted earnings per share of $3.50, both above consensus estimates. The stock nevertheless fell about 5.1% on the Nasdaq; market participants attributed this to a high valuation (P/E >50) and profit-taking. CEO Gary Dickerson attributes the growth to stronger demand for equipment for AI chips; the company expects roughly $10.25 billion in revenue for the fourth quarter. About 28% of revenue comes from China, which is cited as a risk in the event of possible export restrictions. » Más en finanzen.net

Weaker US retail data and falling consumer confidence dampened sentiment at US markets on Friday, with the Dow, S&P 500 and Nasdaq closing slightly lower. Applied Materials fell 5.1 percent despite strong quarterly results and a positive outlook, as concerns over high valuation weighed on the stock. Reddit jumped sharply after the announcement of its inclusion in the S&P 500, while Sandisk and Eton Pharmaceuticals rose significantly following analyst ratings and quarterly results, respectively. Overall, economic worries are dominating market sentiment and making investors more cautious. » Más en de.investing.com