CNBC Televisionยท2025-08-18 17:42Market Trends & Investment Strategies - BCA today suggests broadening investment beyond the "Mag 7" to the "pedestrian 493," favoring disruptors over the disrupted [1] - The market is in a "wait and see" mode regarding incumbent seat-based software providers and their ability to generate more revenue through AI [8] - Goldman agrees with the view that the software bear case is not a certainty [7] - A modest correction is occurring in the cybersecurity sector due to concerns about potential pullback in spending [9] Company Performance & Outlook - Applied Materials (AAT) experienced its worst week since July 2024 due to terrible guidance, coming in 10% below street expectations [4][5] - Applied Materials has responded negatively for the last six quarters, leading to a decision to exit the position [6] - Lamb Research and KLA Corp are executing well, contrasting with Applied Materials' underperformance [7] - Viva Systems, a cloud-based software company in the healthcare sector, is performing remarkably well, up 44% over the last year with double-digit earnings growth [11] - Oracle is performing phenomenally, driven by the AI trade and excellent results, with HSBC raising its price target to $287 and reiterating a buy rating [12] Specific Company Analysis - Adobe is considered disrupted, with final judgment reserved until the next earnings call in about 3 weeks [2][3] - Palo Alto Networks needs to provide very strong guidance to restore positive momentum in the cybersecurity sector [10] - CrowdStrike's target price was reduced to $425 from $450 by Evercore ISI, adding it to the tactical underperform list [10]