Applied Materials shares fell 7.2% to 3:53 p.m. EDT on Tuesday after an investor presentation that omitted overall revenue projections for 2030. The company targets adjusted gross margin of roughly 54% and operating margin of about 40% by 2030, up from 48.8% and 30.2% in 2025. Applied expects to gain two percentage points of WFE market share and grow services revenue to over $12 billion, versus about $6.4 billion in fiscal 2025. Based on the article's math, doubling fiscal 2025 revenue of $28.4 billion to about $57 billion would yield roughly $22.8 billion in operating income, implying a 17x multiple on a market cap near $363 billion. The article suggests investors may have taken profits over uncertainty about the AI build-out, though management guidance may be conservative.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Get briefings and signals on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the morning, midday and evening briefing of each market and important news as it happens.