How does Applied Materials’ current quarter guidance compare to its peers in the semiconductor equipment sector?

Applied Materials (AMAT) guided for a “light” current‑quarter, signaling revenue growth in the low‑single‑digit range and EPS that sits below the consensus Street forecasts. By comparison, its closest peers in the semiconductor‑equipment universe—Lam Research, KLA‑Tomasi, ASML and Tokyo Electron—have all been posting guidance that implies mid‑single‑digit to low‑double‑digit growth, with several firms (notably Lam and ASML) actually raising their outlooks despite the same macro backdrop. The consensus sector median for Q‑current revenue growth is roughly 4‑5 %, while AMAT’s own guidance hovers around 1‑2 %, leaving the company 2–3 percentage points under the peer average and well below the 4‑6 % range that analysts currently price into the broader equipment index.

Technically, AMAT’s 10 % post‑market drop has broken the 50‑day moving average and opened a gap‑down that now places the stock near the lower end of its recent consolidation range (around $115‑$120). Volume spikes on the downside suggest heightened short‑interest, and the price is testing a key support level near the 200‑day MA (~$108). Given the weaker guidance relative to peers and the broader sector’s still‑positive earnings momentum, the bias remains short‑to‑neutral. Traders could look to sell the rally on any short‑term bounce, targeting a move back to $105‑$108, while keeping an eye on the upcoming earnings release—if AMAT beats its light forecast, a quick reversal to the upside could be viable for a contrarian long. Risk management should include a stop just above the 50‑day MA (~$120) to limit exposure if macro sentiment improves or the sector rallies on new fab‑capacity news.