Applied Materials Sinks 7.5% in Intel’s Chip Rout Days After Doubling Its Besi Stake
Applied Materials (AMAT) fell 7.5% on Friday, impacted by Intel's forecast. The company plans to increase its stake in BE Semiconductor (BESI) to 20%. Applied guided Q4 revenue at $10.25B, up 51%, with EPS of $4.02. BESI's Q3 orders rose 96%, but its shares dropped 54% since June due to delayed hybrid bonding adoption.
How this was made
The 30-second read
Why it matters
The dual news created divergent market reactions: a sell‑off in AMAT due to broader chip sentiment and a rally in BESI from the investment announcement.
Market read
Both companies are key players in the AI‑driven semiconductor supply chain; news impacts equipment demand outlook and investor sentiment.
What to watch
Potential antitrust review of the accelerated purchase agreement could delay the BESI stake increase.
Background
Applied Materials reported record Q3 results, strong DRAM demand, and issued upbeat Q4 guidance while also increasing its strategic stake in BE Semiconductor Industries.
Ticker impact
Applied Materials shares fell 7.5% after Intel‑related chip rout despite issuing Q4 revenue guidance of $10.25 B.
likely pressure as investors price in the Intel‑driven sell‑off despite higher guidance
The stock dropped sharply on the same day of the news, indicating immediate downside risk.
Market effects
The chip sector may see broader volatility as Intel’s outlook influences related equipment makers.
U.S. semiconductor stocks could face short‑term pressure, while European memory equipment may benefit.
Guidance and stake news affect global supply‑chain expectations for AI‑related hardware.
Counterpoint
Despite the sell‑off, the strong Q4 guidance could make AMAT a buy‑the‑dip candidate if the broader chip rally resumes.
Key entities
- CompanyApplied Materials
U.S. semiconductor equipment maker (NASDAQ: AMAT).
- CompanyBE Semiconductor Industries
Dutch semiconductor equipment supplier (NASDAQ: BESI).
