Applied Materials, Inc. (NASDAQ: AMAT) reported mixed results for the second quarter, beating revenue that estimates and revenues were slightly less expected. Santa Clara-Headquarted Company, the market leader in semiconductor wafer manufacturing equipment, issued third-quarter guidance below analyst estimates, driving stocks quickly after its announcement on Thursday afternoon.
Stocks fell 6% on Friday, dropping early in the session, extending the post-revenue slump. Investor sentiment is being curtailed due to concerns over the potential impact of new import tariffs on the semiconductor industry. In March, Amat skated to its lowest level in almost a year and a half. However, the long-term outlook for stocks appears to be encouraging. As a leader in global semiconductor equipment suppliers, Applied Materials is strategically placed and has become a compelling investment option to capitalize on the burgeoning demand for AI applications.
Mixed results
Core growth of 7% in Q2 Semiconductor System The business has increased its total revenue to $700 billion. Contribute to the growth of the top line, Applied Global Services Revenues rose 2% screen Revenues increased by 45%. The company’s adjusted revenues rose 14% per share in the second quarter to $2.39. Quarterly revenue has consistently broken estimates for nearly three years. On a reported basis, revenue moved from $1.72 billion or $2.06 per share to $2.14 billion or $2.63.
Commenting on the results, Gary Dickerson, the company’s CEO, said: “The key technology trends rebuilding the global economy, including IoT, automation, robotics, electric vehicles, autonomous vehicles, and clean energy, all are built on advanced semiconductors. AI is at the heart of the future market outlook. Large-scale deployment of AI.
guidance
In the third quarter of 2025, we expect to adjust for revenues of approximately $7.2 billion and revenues of approximately $2.35 per share. This guidance is below analyst estimates of $2.36 per share in revenue and revenue of $7.22 billion and profits as of May 16, 2025.
Applied Materials has been attributed to recent declines in performance in China due to market access restrictions imposed on US companies. Outside of China, the largest overseas market, the company has grown faster than other markets due to cutting-edge foundries and DRAM strengths. As the company is a leading supplier of materials engineering solutions needed to produce AI chips, it appears to be suitable for taking advantage of the growing demand for AI.
On Friday morning, Applied Materials shares were trading near early levels and remained on a decline. The stock is about 6% below the 52-week average price, reflecting investors’ concerns about second-quarter results.
