Applied Materials is Down 6% Premarket. Will It Drag Down Lam Research, KLA, and Other Semi Equipment Stocks?

Applied Materials shares are down 5.7% premarket after posting record fiscal Q3 results but delivering Q4 revenue and margin guidance that missed expectations. The stock reaction suggests investors were positioned for an even stronger follow-through into Q4, despite the earnings strength.

Analysis

Applied Materials shares are down 5.7% premarket after posting record fiscal Q3 results but delivering Q4 revenue and margin guidance that missed expectations. The stock reaction suggests investors were positioned for an even stronger follow-through into Q4, despite the earnings strength.