1. AMAT reported Q3 revenue of $7.3 billion, above expectations. 2. Fourth-quarter revenue expected to decline to $6.7 billion. 3. Analyst sentiment is mixed, with target price cuts from several firms. 4. AMAT stock dropped 12.06% to $165.63 after the earnings report. 5. Concerns arise over demand from leading-edge customers in China.
Despite beating revenue expectations, forecast revisions and price target cuts indicate weakening demand, reminiscent of past downturns in semiconductor equipment stocks, such as during the 2018 supply correction.
The combination of revenue decline and analyst downgrades significantly impacts market perception and investor confidence in AMAT's short-term prospects.
The immediate impact is due to investor reaction post-earnings; further financial performance will clarify long-term effects.