Applied Materials Positioned For 2025 Growth Despite Soft China Revenue And Light Q4 Guidance, Analysts Say
Portfolio Pulse from Anusuya Lahiri
Applied Materials (AMAT) reported strong Q3 earnings, beating revenue and EPS estimates. Despite this, the stock declined due to light Q4 guidance and lower China revenue. Analysts remain optimistic about AMAT's long-term growth, with several maintaining or raising their price targets. Key concerns include potential export restrictions and Intel's capex cuts, but AMAT's leadership in advanced technologies and high gross margins are seen as positive factors.
August 16, 2024 | 6:26 pm
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Applied Materials reported strong Q3 earnings but provided light Q4 guidance, leading to a stock decline. Analysts remain optimistic about long-term growth, citing leadership in advanced technologies and high gross margins.
Despite strong Q3 earnings, the light Q4 guidance and lower China revenue led to a stock decline. However, analysts' optimism and raised price targets suggest a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Intel's capex cuts were mentioned as a concern for Applied Materials, but analysts believe it won't significantly impact AMAT's outlook for Gate-All-Around revenues.
Intel's capex cuts are a concern but are not expected to significantly impact AMAT's outlook. This suggests a neutral short-term impact for Intel.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30