Applied Materials (AMAT) shares fell about 7.4% to around $380 after Lam Research (LRCX) said supply-chain constraints would hold back its December-quarter outlook, even though Applied reported no news of its own. Lam posted record September-quarter revenue of $8.22 billion, up 22% from June, and guided December-quarter revenue to $8.6 billion, plus or minus $400 million; its CFO said the guidance would have been higher without near-term supply constraints. Lam expects 2026 wafer fab equipment spending in the mid-$150 billion range and a preliminary 2027 figure above $200 billion. Applied's forward multiple has fallen to 23.19x from 48.94x at its July peak, below its 30.80x average, while analysts still expect revenue to rise from $34.26 billion in fiscal 2026 to $46.37 billion in fiscal 2027. The mean target of $628 sits about 65% above the current price, and the November 12 report will show whether those estimates hold.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Applied Materials Sinks 7% on Lam’s Outlook: “A Bit Higher” Wasn’t Enough
Read the original on Yahoo Finance ↗
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Applied MaterialssemiconductorsearningsQQQ
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Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/21/2026 | 725.20 |
| Change that session | +1.05% |
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/21/2026 | 221.97 |
| Change that session | +2.54% |
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