Applied Materials Gives Weak Forecasts, Cites Market Headwinds
A technician pushes a cart of semiconductor wafers at the Applied Materials Inc. facility in Santa Clara, Calif.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Applied Materials Inc., the biggest maker of equipment used to manufacture semiconductors, gave weak forecasts that indicate the chip industry is holding off on expansion plans in the face of a murky outlook for electronics demand. The stock fell in extended trading.
The company is a bellwether for the industry because chip makers must buy gear from Applied Materials well ahead of new manufacturing plans. When the industry is cutting back, Applied Materials is often one of the first to feel those chills, too.