Applied Materials Misses Revenue Estimates Amid Trade War Uncertainty

Santa Clara, California – Applied Materials, a leading chipmaking equipment manufacturer, reported second-quarter revenue on Thursday that fell short of Wall Street estimates. The company saw revenue of $7.10 billion for the quarter ending March 31, below analysts’ expectations of $7.13 billion, according to data from LSEG.

As a result, shares dropped by 2% in after-hours trading. The missed revenue comes amid growing uncertainty surrounding the ongoing trade war and export restrictions impacting the semiconductor industry.

Looking ahead, Applied Materials forecasted its third-quarter revenue to be around $7.20 billion, with a margin of plus or minus $500 million. Analysts had previously estimated third-quarter revenue to be slightly lower at $7.19 billion.

Applied Materials specializes in designing, manufacturing, and marketing equipment used in producing integrated circuits and semiconductor components. The company’s revenue is largely driven by the semiconductor industry, which accounts for approximately 73.3% of its net sales.

Geographically, its sales break down as follows: the United States represents 14.1%, China 37.2%, Korea 16.5%, Taiwan 14.8%, Japan 7.9%, Asia 4.2%, and Europe 5.3%. The company’s workforce consists of approximately 35,700 employees.

With the demand for semiconductor equipment fluctuating due to trade tensions, Applied Materials continues to navigate a complex landscape.