Applied Materials, a major U.S. semiconductor equipment manufacturer, performed well last quarter and is optimistic that artificial intelligence (AI)-driven demand will drive semiconductor equipment sales growth; its stock price still fell by more t...
Applied Materials, a major U.S. semiconductor equipment manufacturer, performed well last quarter and is optimistic that artificial intelligence (AI)-driven demand will drive semiconductor equipment sales growth; its stock price still fell by more than 4% after the market closed.
The Wall Street Journal, Reuters and other foreign media reported that Applied Materials announced after the U.S. stock market closed on the 13th that in the fourth quarter of the 2025 fiscal year (ending October 26, 2025), revenue fell by 3% year-on-year to US$6.8 billion, which was better than the US$6.68 billion expected by analysts surveyed by FactSet. Adjusted earnings per share were US$2.17, higher than the US$2.11 expected by analysts.
(Source: Applied Materials)
In terms of financial forecasts, Applied Materials estimates that revenue in the first quarter of fiscal year 2026 will be approximately US$6.85 billion (plus or minus US$500 million), and adjusted earnings per share will be approximately US$2.18 (plus or minus US$0.20), which is better than analysts’ average estimates of US$6.79 billion and US$2.14.
Applied Materials estimates that due to demand driven by the AI boom, semiconductor equipment sales will accelerate in the second half of 2026. Customers hope to significantly increase production, and artificial intelligence-related businesses are expected to grow at a pace of 40%.
Application Materials pointed out that due to the US government’s expansion of export controls on China, approximately US$110 million worth of products were affected and unable to be shipped last quarter. After the U.S. and China reach an agreement, these are expected to be shipped between January and March 2026 and have been included in the financial forecast.
Applied Materials still estimates that the expansion of export restrictions in the United States will make it difficult to export some products and services to Chinese customers, and its revenue in the 2026 fiscal year will therefore decrease by approximately US$600 million.
The stock price of Applied Materials closed at US$223.23 on the 13th. It fell after the bell after the financial report was released. As of the deadline of this article, it fell by about 4.5%.
Applied Materials supplies advanced chip manufacturing equipment to customers such as Intel, Samsung, and TSMC. Its financial reports are usually regarded as a barometer of semiconductor demand, because customers usually order equipment a long time in advance.
Recently, the market has become increasingly concerned about the overvaluation of AI, and popular AI stocks such as NVIDIA and Palantir have retreated from their highs.
