Applied Materials Stock Retreats After Q2 Results Amid China Export Curb Concerns: Retail Reposes Faith In Chip-Equipment Maker
Despite reporting strong quarterly earnings and providing inline guidance, Applied Materials, Inc.’s (AMAT) stock retreated during the after-hours trading on Thursday.
The firm based in Santa Clara, California, announced an all-time high adjusted earnings per share (EPS) of $2.39 and revenues totaling $7.1 billion for the second quarter of their fiscal year 2025.
This represents an rise from the previous year’s quarterly earnings per share of $2.09 and revenues of $6.65 billion, respectively.
The consensus figure compiled by Finchat predicted adjusted earnings per share (EPS) at $2.31 and revenues at $7.12 billion.
Gary Dickerson, who serves as both the President and CEO, stated, “Despite the rapidly changing overall economic climate, Applied Materials’ extensive range of skills and interconnected suite of products is yielding robust outcomes in 2025.”
The executive emphasized high-performance, energy-efficient AI computing as the key catalyst for advancements in semiconductors, noting further that “Our strong positioning during significant technological shifts in rapidly expanding segments of the market bolsters our prospects for sustained growth over the next several years.”
The CFO, Brice Hill, stated that the company hasn’t noticed substantial shifts in customer demand as a result of tariffs and broader economic instability.
Looking ahead, Applied Materials guided second-quarter adjusted EPS to $2.35 +/- $0.20, and revenue to $7.20 billion, +/- $500 million. This compares to the consensus estimates of $2.31 and $7.20 billion, respectively.
The firm anticipates an adjusted gross margin of 48.3%, which marks a decline from the 49.2% reported in the initial quarter.
During the earnings call, Dickerson mentioned that expenditures from China were reduced, noting declines in investments related to both DRAM and established logic sectors throughout the year. China holds significant importance as a marketplace for Applied Materials, and restrictions on exports from the U.S. to this nation have been placing pressure on the company specializing in semiconductor equipment.
On , retail sentiment toward the
Applied Materials stock
was ‘extremely bullish’ (95/100) by late Thursday, with the retail chatter at ‘extremely high’ levels.
An optimistic observer encouraged other stores to purchase the stock before President Donald Trump completes the agreement with China.
A different user predicted that the stock would reach $200 by the end of this year.
Following Thursday’s session where it closed 0.35% higher at $174.75, the Applied Materials stock dropped by 5.58% to reach $165 during post-market hours.
The share price has increased approximately 8% over the course of this year.
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