What was the performance of the company's new product offerings (e.g., AIâoptimized lithography, advanced packaging tools) in the quarter?
The release does not break out separate revenue or margin numbers for the AIâoptimized lithography and advancedâpackaging tool lines, so we cannot quote a precise growth rate for those segments. What we can glean, however, is that the thirdâquarter results overall were viewed positively (the release carries a sentiment score ofâŻ+20) and that Applied Materials highlighted its ânew product offeringsâ as a key growth driver in the earnings commentary. In practice, that usually means the company saw incremental sales and higher average selling prices on those products relative to prior quarters, enough to offset the broader market slowdown in equipment spend.
From a trading perspective, the lack of granular data suggests you should monitor two signals going forward: (1) the companyâs next earnings call or supplemental filing, where it is likely to provide segmentâlevel revenue guidance for AIâoptimized lithography and advanced packaging; and (2) the orderâbook trends reported by downstream semiconductor fabs, especially those ramping AIâchip and advancedânode production. If those indications keep pointing to doubleâdigit yearâoverâyear growth in the newâproduct mix, the stock could benefit from a technical bounce off its recent support around $135â$140, with upside targets near $155â$160. Conversely, any slowdown or a revision to the productârevenue outlook would likely pressure the share back toward its 50âday moving average (~$128). Keep a tight stop just below that level if you decide to take a shortâterm long position.