Applied Materials Slips Despite Strong Outlook as SMIC Rallies on Earnings: Dow Jones, S&P, Nasdaq, Wall Street Futures - Yahoo Finance

Despite issuing stronger-than-expected fourth-quarter revenue guidance, Applied Materials (AMAT) saw its stock decline, reflecting investor skepticism amid elevated expectations for AI-related compani... Read original →

Despite strong fourth-quarter guidance, Applied Materials stock declined amid heightened investor scrutiny over AI equipment valuations. SMIC’s rally underscores the resilience of domestic chip fabrication amid supportive policies and demand recovery. Cisco and Cerebras faced downward pressure, reflecting market fatigue with growth narratives. Sandisk’s long-term outlook highlights sustained demand for AI infrastructure. Slowing inflation may prompt the Federal Reserve to hold rates in September, but geopolitical risks and supply chain disruptions persist. Over the next 12–24 months, capital expenditure will increasingly focus on advanced nodes and specialized chips, compelling traditional equipment vendors to pivot toward innovation or risk obsolescence.