How does AMAT's performance and guidance compare to its main competitors such as Lam Research and KLA?

Fundamental comparison – Applied Materials (AMAT) delivered a disappointing earnings beat but warned that “leading‑edge” and China customers are pulling back, prompting a 13 % drop and guidance that falls short of the consensus 12‑month outlook. Revenue is expected to grow only modestly (mid‑single‑digit %) with margin pressure from inventory adjustments and a slower ramp of EUV tools. By contrast, Lam Research posted a 7‑9 % YoY revenue increase, driven by strong 5‑nm/3‑nm memory and logic volumes, and its FY guidance remains in line with Wall Street expectations (mid‑single‑digit revenue growth, operating margin expansion). KLA‑Tencor similarly beat forecasts, citing robust demand for inspection and metrology across advanced nodes, and it reaffirmed a 10‑12 % revenue growth trajectory with healthy cash‑flow generation. Both peers have less direct exposure to Chinese fabs and therefore face a lighter head‑wind than AMAT, which is seeing a measurable slowdown in its China pipeline.

Technical & trading implications – AMAT’s chart now sits below its 50‑day SMA and is testing the $115‑$115.5 support zone; a break below $112 would open the path to the 200‑day MA around $105, making a short‑position or a protective put spread attractive, especially if the next earnings call reinforces the weak outlook. Conversely, Lam (LRCX) and KLA (KLAC) remain in a bullish technical setup, each trading above their 20‑day and 50‑day moving averages with upward‑sloping momentum indicators. For risk‑adjusted exposure, a relative‑strength trade—long Lam and KLA while short AMAT—captures the divergence in guidance and demand fundamentals. Monitor China policy updates and the upcoming semiconductor equipment order data (often released weekly) as catalysts that could quickly swing sentiment between the three stocks.