Applied Materials' shares sink on weak China demand, tariff uncertainty
Applied Materials shares
slid about 15% in premarket trading on Friday after the company issued disappointing sales and profit forecast, stoking investor concerns that the
U.S.-China trade dispute
was eroding demand.
The chip-equipment maker joined Dutch rival ASML Holding in flagging continued uncertainty over the impact of U.S. tariffs, as two of the industry's biggest players grapple with weakening demand.
Applied Materials
CEO Gary Dickerson flagged lower visibility and increased uncertainty in the near-term during a post-earnings call, citing "wide-ranging implications for the
semiconductor industry
" from the dynamic policy environment.
China, Applied Materials' top revenue source in the July quarter accounting for 35% of sales, has emerged as a growing risk for chipmaking tool suppliers as U.S. export restrictions weigh on new orders.
Smaller rival KLA Corp, which also has a significant presence in China, said last month it expects softer demand as Sino-U.S. trade tensions weigh on spending by Chinese chipmakers.
"China volatility is significantly clouding visibility into core earnings potential both geopolitically and cyclically," Deutsche Bank strategists said in a note.
Applied Materials expects revenue of $6.70 billion, plus or minus $500 million, for the fourth quarter, compared with analysts' average estimate of $7.33 billion, according to data compiled by LSEG. Its projected profit also came in below estimates.
If current losses hold, the company is set to lose more than $22 billion of its $151.06 billion market value as of Thursday's close.
J.P.Morgan analyst Harlan Sur, however, noted the slowdown in
China demand
and erratic orders from major foundry customers are "more a reflection of timing of spending rather than structural issues."
The stock has risen 15.7% so far this year, compared with a 12.5% increase in the Nasdaq index and a nearly 10% gain in the S&P 500 index.
Shares of
chip-equipment makers
KLA Corp and Lam Research fell more than 5% each after Applied's results.
The company's third-quarter revenue rose 8% to $7.30 billion from a year ago, beating estimates of $7.22 billion.
Applied's stock trades at 19 times its estimate for earnings per share over the next 12 months, according to data compiled by LSEG. This trails ASML's ratio of 26.04 times similar earnings estimate, Lam's 23.56 and KLA's 26.82.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
US stock market prediction: Will Nasdaq, S&P 500, Dow Jones slip or rise on Monday? Check lucrative stocks
US Stock Market indexes -- Dow Jones, S&P 500, and Nasdaq -- will look to maintain its positive run at the Wall Street. However, investors will keep close eyes on the Federal Reserve and Fed Chair Jerome Powell to check whether there will be interest rate cut or not. U.S. stocks edged back from their record levels on Friday in a quiet finish to another winning week. The S&P 500 slipped 0.3 per cent from the all-time high it set the day before, as it closed its fourth winning week in the last five. The Dow Jones Industrial Average flirted with its own record, which was set in December, before ending just below the mark with a rise of 34 points, or 0.1 per cent. The Nasdaq composite dipped 0.4 per cent, though it's still near its record set on Wednesday. The U.S. stock market reached all-time highs this past week as expectations built that the Federal Reserve will deliver a cut to interest rates at its next meeting in September. Lower rates can boost investment prices and the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment, but they also risk worsening inflation. US Stock Market Outlook Companies likely to benefit most from lower borrowing costs have been among the big winners in recent Wall Street trading, said Andrew Slimmon, head of Applied Equity Advisors at Morgan Stanley Asset Management. Shares of leading homebuilders such as PulteGroup, Lennar, and D.R. Horton are up between 4.2 per cent and 8.8 per cent in the last week, as of midday Friday, thanks largely to the recent drop in mortgage lending rates. Live Events Their gains trounced the 1 per cent rally in the Standard & Poor's 500 index over the last week. The group has outpaced the broader market more dramatically over the last month, with gains of 15 per cent to 22 per cent compared to 3.3 per cent for the S&P 500. But their future gains hinge on mortgage rates continuing to fall, something that a recent uptick in 10-year Treasury bond yields puts into question. FAQs Q1. What are US Stock Market indexes? A1. US Stock Market indexes are Dow Jones, S&P 500, and Nasdaq. Q2. Which stocks have gone up? A2. Shares of leading homebuilders such as PulteGroup, Lennar, and D.R. Horton are up between 4.2 per cent and 8.8 per cent in the last week, as of midday Friday, thanks largely to the recent drop in mortgage lending rates.
Economic Times
2 hours ago
- Economic Times
He said no to Steve Jobs' advice, and lost his shot at becoming the world's first trillionaire - who is he?
Back in 1976, a young Steve Jobs offered his former Atari boss the chance to buy one-third of Apple for just $50,000. He said no. Nearly 50 years later, that decision stands as one of the most jaw-dropping missed opportunities in Silicon Valley history — a deal that could have made him nearly a trillionaire. Steve Jobs' First Silicon Valley Boss Passed on Apple for $50,000 — When Steve Jobs and Steve Wozniak were trying to get Apple off the ground in 1976, they turned to someone Jobs trusted — his former boss at Atari, Nolan Bushnell. Jobs offered him a chance to buy a one-third stake in Apple for just $50,000. Bushnell, already busy running Atari and expanding into new ventures, declined. At the time, the offer seemed like a gamble on two kids working out of a garage. Today, that same stake would be valued at nearly $1 trillion, making it one of the greatest missed opportunities in Silicon Valley's history. In 1976, Steve Jobs walked into his boss's office with an offer that seemed modest at the time: invest $50,000 for a one-third stake in Apple Computer. The man across the table was Nolan Bushnell, cofounder of Atari and the so-called 'father of video games.' Bushnell declined. Nearly half a century later, that rejected deal would have translated into close to $1 trillion, making him wealthier than any single entrepreneur alive today. Bushnell wasn't just Jobs' employer; he was one of his earliest mentors. Jobs had worked at Atari in the mid-1970s, a period that honed his design instincts and taught him the value of merging technology with play. Yet when Jobs and Steve Wozniak tried to bring him in as an early backer of Apple, Bushnell passed. Speaking to ABC Australia in 2015, Bushnell explained: 'It seemed like a lot of money. And I was so busy with Atari. I had other priorities.' Bushnell later doubled down on that sentiment, telling Fortune in 2025 that even though the lost fortune is staggering, he holds no regrets. In his words, becoming 'uber, uber, uber rich' wasn't the only path to fulfillment. To put the numbers in perspective: Apple's market capitalization as of August 2025 is hovering around $2.8 trillion (Nasdaq data). as of August 2025 is hovering around (Nasdaq data). A one-third share would therefore equal approximately $930 billion . would therefore equal approximately . For comparison, that's larger than the entire GDP of Switzerland ($905 billion, IMF 2024). Had Bushnell taken the offer, he would have eclipsed the net worth of today's richest individuals — Elon Musk ($232 billion), Jeff Bezos ($195 billion), and Bernard Arnault ($187 billion, Forbes Billionaires List 2025). At first glance, this story reads like one of history's great financial blunders. But looking closer, it's also a reminder of how timing, perspective, and personal values shape business decisions. In 1976, Apple wasn't Apple. It was two young men in a garage, pitching hand-assembled circuit boards. Atari was already a global gaming phenomenon, and Bushnell was expanding into family entertainment through Chuck E. Cheese. Betting on Jobs and Wozniak wasn't an obvious 'slam dunk.' Bushnell himself has noted in interviews that constantly chasing every investment would have distracted him from building his own legacy. Atari pioneered the arcade revolution. Chuck E. Cheese blended tech with entertainment in ways that shaped American childhoods. While he may have missed out on a trillion-dollar payday, he didn't miss out on cultural influence. From an investor's perspective, the Bushnell story underscores a brutal truth: most world-changing companies don't look obvious at the start. In 1976, $50,000 for Apple seemed speculative. Today, missing out on early tech bets is a recurring theme in Silicon Valley. Consider: Ronald Wayne , Apple's forgotten cofounder, sold his 10% stake for $800 in 1976. That stake would now be worth $280 billion . , Apple's forgotten cofounder, sold his in 1976. That stake would now be worth . Yahoo! had the chance to buy Google for $1 million in 1998. They passed. Google's market cap is now $2.1 trillion . had the chance to buy Google for in 1998. They passed. Google's market cap is now . Blockbuster laughed off Netflix's $50 million sale pitch in 2000. Netflix is worth $235 billion today, while Blockbuster has vanished. These cautionary tales reinforce that early innovation often looks like a gamble, not a guarantee. For investors, the Bushnell-Apple saga is a lesson in humility: even seasoned entrepreneurs with vision can miss the next big thing. For entrepreneurs, it's a reminder that rejection doesn't kill potential. Jobs and Wozniak didn't fold when Bushnell said no; they doubled down until the world had to listen. For ordinary readers, it's also a useful lens into decision-making. Bushnell might have missed a trillion-dollar windfall, but he avoided the 'golden handcuffs' of wealth that could have reshaped his life in ways he didn't want. Not every no is a mistake, and not every yes guarantees peace of mind. Almost fifty years on, the story remains one of Silicon Valley's most powerful what-ifs. If Bushnell had invested, Apple's trajectory might not have been the same. He could have influenced strategy, direction, or culture — for better or worse. In the end, his refusal gave Jobs and Wozniak complete independence, which arguably allowed Apple to grow into the uncompromising company it became. And perhaps that's the hidden legacy: one man's no helped preserve Apple's DNA. Nolan Bushnell turned down one of the greatest deals in corporate history — a third of Apple for $50,000. On paper, it cost him nearly $1 trillion. In reality, it gave Steve Jobs and Apple the autonomy to shape the world on their own termsQ1: Who was Steve Jobs' first Silicon Valley boss who turned down Apple's $50,000 offer? A1: It was Nolan Bushnell, the founder of Atari. Q2: How much would a $50,000 investment in Apple be worth today? A2: Nearly $1 trillion in 2025.
Time of India
2 hours ago
- Time of India
Intel shares rise on report of possible US government stake
By Rashika Singh and Arsheeya Bajwa Intel shares rose 3% on Friday on hopes of more financial aid for the turnaround of the struggling chipmaker after a report that the U.S. government may buy a stake. The Bloomberg News report followed a meeting between CEO Lip-Bu Tan and President Donald Trump on Monday after Trump demanded the new Intel chief's resignation over his "highly conflicted" ties to Chinese firms. Trump, who called the meeting "very interesting", has taken an unprecedented approach to interventions and deal-making with corporate America. His administration had struck a deal with MP Materials that would make the Department of Defense the largest shareholder of the rare-earth producer. Federal backing could give Intel more time to revive its loss-making foundry business, analysts said, but it still faces a weak product roadmap and trouble attracting customers for new factories. Under the Biden administration, Intel had emerged as one of the biggest beneficiaries of the 2022 CHIPS Act , as former CEO Pat Gelsinger laid out plans to build advanced factories. Tan, however, pared back such ambitions, slowing construction of new plants in Ohio. He plans to build factories based on demand for the services, which analysts have said could put him at odds with Trump's push to shore up American manufacturing. The report said a deal would help build out the Ohio plant, which has faced delays and was expected to be completed by 2030. It could be a "game-changer", said Matt Britzman, senior equity analyst at Hargreaves Lansdown. But he warned "government support might help shore up confidence, but it doesn't fix the underlying competitiveness gap in advanced nodes." Intel lost its competitive edge years ago to Taiwan's TSMC . It has virtually no presence in the booming AI chips market dominated by Nvidia and is losing market share in PCs and datacenters to AMD. Its latest 18A manufacturing process is facing quality issues, Reuters has reported, as only a small share of chips produced are good enough for customers, while it remains partly dependent on TSMC to make Intel in-house designed chips. "Intel also needs capability; can the US government do anything to help here?" Bernstein analysts said. "Without a solid process roadmap the entire exercise would be economically equivalent to simply setting 10s of billions of dollars on fire."
