15 AI News Stories Shaking Up Wall Street

4. Applied Materials, Inc. (NASDAQ:AMAT)

Market Capitalization: $139.23 billion

Applied Materials, Inc. (NASDAQ:AMAT) is engaged in the provision of materials engineering solutions used to produce new chips and advanced displays. The key AI player delivers the equipment needed to produce chips that power everything from personal computers to smartphones.

On November 15, Deutsche Bank analyst Melissa Weathers maintained a “Hold” rating on Applied Materials, Inc. (NASDAQ:AMAT) and set a price target of $200.00. The hold rating stems from several factors that are affecting the company’s prospects. Even though the company has had a solid quarterly performance, its guidance failed to meet investors’ expectations due to mixed spending trends in the wafer fabrication equipment market. For Q1, the company forecasts adjusted diluted EPS of $2.29, with a potential range of $0.18 above or below that figure, and projected revenue of about $7.15 billion, plus or minus $400 million. This guidance was compared to analysts’ estimates of $2.27 for adjusted EPS and $7.23 billion in revenue. While the company exceeded analysts’ expectations for adjusted EPS, the revenue growth projections remain soft, despite strong demand in leading-edge nodes and positive momentum in DRAM, since other areas are weaker. Additionally, the company’s exposure to the Chinese market remains steady but is expected to decline in revenue share. Additionally, potential new restrictions on China add to a cautious outlook.