Applied Materials Falls 2.48% After $9.12 Billion Quarter as 33x AI Valuation Spurs Doubts
Updated
Updated · Yahoo Finance · Aug 14
Applied Materials Falls 2.48% After $9.12 Billion Quarter as 33x AI Valuation Spurs Doubts
3 articles · Updated · Yahoo Finance · Aug 14
Summary
$534.54 Applied Materials shares fell 2.48% even after the chip-equipment maker posted record $9.12 billion revenue, up 24.8%, and a fifth straight EPS beat.
A 33x forward P/E and 108.52% year-to-date rally left investors questioning how much of the AI capex cycle is already priced in, despite management saying visibility now extends into 2027 and beyond.
Q4 guidance called for $10.25 billion in revenue and $4.02 in non-GAAP EPS, while Semiconductor Systems operating margin widened to 38.0% from 33.2% and advanced packaging revenue is set to grow more than 50% in 2026.
China added a key overhang: revenue from the market fell to 28% of sales from 35% as export controls tightened, and the Other segment's operating loss widened to $118 million from $4 million.
Management still sees leading-edge foundry logic, DRAM and advanced packaging driving more than 80% of 2026 wafer-fab-equipment growth, making margin, packaging growth and customer capex plans the next tests for the stock.