Applied Materials met Wall Street’s expectations in the first quarter of 2025, but the market reacted negatively, reflecting concerns that surfaced during the earnings call. Management highlighted strong demand for AI-enabling semiconductors and robust performance in leading-edge foundry and DRAM segments as primary growth drivers. CEO Gary Dickerson noted, “Our customers remain focused on winning the race to be first-to-market with transformative new technologies,” yet acknowledged that trade restrictions and a weaker 200-millimeter equipment market, especially in China, affected the company’s service segment. CFO Brice Hill cited the “rapidly evolving economic and trade policy environment” as a challenge that the company continues to navigate.
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors.
However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
Shares of Applied Materials shares are trading lower Friday afternoon. The semiconductor sector fell after reports that the U.S. will end waivers allowing tech exports to China.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
APPLIED MATERIALS INC (NASDAQ:AMAT) offers strong earnings growth, solid profitability, and reasonable valuation, making it a potential fit for GARP investors following Peter Lynch’s strategy.
