Why Are Analysts Downgrading Applied Materials, Inc. (AMAT)?

Core Viewpoint - Applied Materials, Inc. (NASDAQ:AMAT) has been downgraded by multiple analysts due to a weak fourth quarter outlook, primarily influenced by demand pressures in China and ongoing trade tensions [1][2][3]. Group 1: Analyst Downgrades - BofA analyst Vivek Arya downgraded AMAT to Neutral from Buy, reducing the price target from $190 to $180, citing a surprisingly weak fourth quarter outlook [2]. - Daiwa Capital also downgraded AMAT to Neutral from Outperform, lowering the price target from $185 to $170 [3]. - Mizuho analysts downgraded the stock to Neutral from Outperform and cut the price target from $200 to $175, highlighting intensifying competition in China and potential market share erosion [3]. Group 2: Company Guidance - During the Q3 FY25 earnings call, the CFO of AMAT indicated expectations of revenue decline in the fourth quarter due to capacity digestion in China and non-linear demand from leading-edge customers [1].