With untold wealth right in front of them, has Applied Materials (AMAT) actually chickened out? - 36 Kr

Applied Materials (AMAT) delivered solid Q3 FY2026 results, with revenue of $9.12 billion, up 25% YoY, slightly beating expectations of $9.02 billion, and gross margin of 50.3%, meeting estimates. The... Read original →

Applied Materials delivered strong Q3 results but cautious guidance sparked investor skepticism, highlighting the volatility of the semiconductor cycle and uncertainty around AI infrastructure investment. Technologically, logic chip equipment growth signals sustained demand for advanced nodes, while DRAM equipment gains remain subdued, indicating a delayed memory market recovery. Upstream equipment suppliers face short-order cycles and supply chain risks, especially amid U.S.-China tech decoupling. Competitors like ASML and Lam Research are aggressively expanding in EUV and advanced process tools to capture AI-driven demand. If TSMC and memory makers maintain high capex, AMAT may see a turnaround in 2026, but current guidance lacks long-term conviction, prompting investors to reassess its strategic positioning in the semiconductor cycle.