Core Viewpoint - Applied Materials anticipates a decline in spending on chipmaking equipment in China by 2026 due to stricter U.S. export controls, although overall revenue is expected to be stronger in the latter half of the year [1] Group 1: Revenue Impact - The company projects a $600 million reduction in fiscal 2026 revenue as a result of expanded U.S. export restrictions affecting shipments to China-based customers [2] - Current-quarter revenue is forecasted at $6.85 billion, with a variance of $500 million, compared to analysts' expectations of $6.76 billion [3] - The suspension of the affiliate rule is expected to enable approximately $600 million in sales for the full fiscal year [4] Group 2: Market Dynamics - Applied Materials' share of sales in China has decreased from nearly 40% to the mid-20% range, with foreign competitors still able to sell to Chinese companies [5] - The company can no longer supply China's memory chip and older-generation chipmaking markets due to tighter U.S. controls, but does not foresee major new shipment restrictions [4] Group 3: Future Outlook - Customers indicate that spending on wafer fab equipment is likely to accelerate starting in the second half of calendar 2026 [6] - The company forecasts a profit per share of $2.18, excluding one-off items, which is higher than the estimated $2.13 [6]

Core Insights - Applied Materials reported its sixth consecutive year of growth in fiscal 2025, driven by AI adoption and substantial investment in advanced semiconductors and wafer fab equipment [2] - The company is preparing for higher demand starting in the second half of calendar 2026, focusing on R&D investments to create faster and more energy-efficient technologies [2] Financial Performance - Q4 FY2025 net revenue was $6.80 billion, a decrease of 3% year-over-year, while FY2025 total net revenue reached a record $28.37 billion, up 4% from FY2024 [3][5] - Gross margin for Q4 FY2025 was 48.0%, an increase of 0.7 percentage points from Q4 FY2024, while operating margin decreased to 25.2%, down 3.8 percentage points year-over-year [3] - Net income for Q4 FY2025 was $1.90 billion, up 10% from $1.73 billion in Q4 FY2024, with diluted earnings per share (EPS) of $2.38, a 14% increase [3][5] Segment Performance - Semiconductor Systems segment net revenue for Q4 FY2025 was $4.76 billion, down from $5.18 billion in Q4 FY2024, with an operating income of $1.53 billion [7] - Applied Global Services segment net revenue was $1.63 billion for Q4 FY2025, slightly down from $1.64 billion in Q4 FY2024, with an operating income of $454 million [7] Geographic Revenue Distribution - In Q4 FY2025, revenue from China was $1.96 billion, accounting for 29% of total revenue, while revenue from Taiwan was $1.83 billion, representing 27% [19][20] - The United States contributed $655 million, or 10% of total revenue, down from 16% in the previous year [19][20] Business Outlook - For Q1 FY2026, Applied Materials expects total net revenue of approximately $6.85 billion, with non-GAAP diluted EPS projected at $2.18 [4][5]

Market Overview - Pre-market indexes are down across the board, with the Dow down 118 points (-0.24%), S&P 500 down 20 points (-0.30%), Nasdaq down 94 points (-0.37%), and Russell 2000 down 15 points (-0.62%) [1] - The market sentiment is influenced by high AI spending concerns [1] Economic Data Expectations - Anticipation for new inflation data from the Consumer Price Index (CPI) and jobs data from Weekly Jobless Claims was unmet, with expectations for inflation to rise to +3.1% and for 225K new jobless claims [2] Company Earnings Reports - **Walt Disney Co. (DIS)** reported fiscal Q4 earnings of $1.11 per share, beating estimates of $1.03, but lower than $1.14 from the previous year, resulting in a +7.77% positive earnings surprise. Revenues were $22.46 billion, exceeding expectations by +1.72% but down from $22.57 billion year-over-year [3][4] - Despite the earnings beat, Disney shares fell -5.8% in pre-market trading, erasing +4.8% year-to-date gains, primarily due to a -6% decline in its Entertainment division and a -16% drop in network revenue [4] - **Sally Beauty (SBH)** reported earnings of 55 cents per share, surpassing the consensus of 49 cents by +12.24%, with revenues of $947.1 million exceeding expectations of $933 million, marking the third consecutive earnings outperformance [5] Upcoming Earnings and Market Sentiment - **Applied Materials (AMAT)** is expected to report fiscal Q4 results, with anticipated negative earnings growth of -9.05% and negative revenue growth of -4.93% [6] - The market is also awaiting comments from several Federal Reserve members, which may influence investor sentiment regarding future interest rate cuts [7] Federal Reserve Actions - The Federal Reserve has reduced the Fed funds rate by 50 basis points since mid-September, bringing the median rate below 4% for the first time since December 2022. There are expectations for another 25 basis points cut at the mid-December meeting, but the lack of new economic data may complicate this [8]

The Nikkei rose 0.43% to close at 51,281.83. The Topix rose 0.67% to an all-time high close of 3,381.72, extending gains to a fourth session. U.S. President Donald Trump on Wednesday signed legislation ending the longest government shutdown in the country's history. In Japan, chip-related Fibre optic maker Fujikura advanced 3.16%, while peers Furukawa Electric and Sumitomo Electric jumped 12.23% and 7%, respectively.Live Events Bank shares rose, with "Investors started buying value stocks. This move is ...

分组1 - Walt Disney Co. is expected to report quarterly earnings of $1.04 per share on revenue of $22.75 billion [2] - Cisco Systems Inc. reported first-quarter revenue of $14.88 billion, exceeding analyst estimates of $14.77 billion, and raised its fiscal 2026 guidance [2] - Cisco's adjusted earnings for the first quarter were $1.00 per share, surpassing analyst expectations of 98 cents per share [2] - Applied Materials Inc. is anticipated to post quarterly earnings of $2.10 per share on revenue of $6.67 billion [2] - SoundThinking Inc. reported disappointing third-quarter results and lowered its FY25 sales guidance, leading to an 11.6% drop in shares [2] - JD.Com Inc. is expected to report quarterly earnings of 34 cents per share on revenue of $41.33 billion [2]

Core Viewpoint - The company emphasizes that technological innovation is the core of its sustainable development and is planning to establish a new division focused on semiconductor packaging to seek new growth opportunities [1] Group 1: Company Strategy - The company adheres to the value concept that "excellence in quality is the starting point of value and dignity, and meeting customer needs is the source of innovation and development" [1] - The company is planning to set up an SIP packaging division that will focus on the semiconductor packaging field and introduce innovative products [1] Group 2: Product Development - The new division will provide various specialized equipment, including printing equipment, ball placement equipment, and dispensing equipment [1] - The company has already begun developing SiC wafer aging test equipment and KGD chip sorting equipment aimed at third-generation semiconductors [1] Group 3: Market Expansion - The company plans to increase resource investment in the semiconductor and related fields, focusing on enhancing new product development capabilities and market expansion abilities to capture a broader market space [1]

Corporate Performance - Cisco (CSCO) stock increased over 4% following its earnings report, which indicated progress in capturing AI spending from hyperscalers. The company raised its full-year profit and sales forecasts, surpassing analysts' expectations [5] - Disney's (DIS) fourth quarter revenue fell short of estimates, resulting in a 9% decline in its shares, despite the company increasing its dividend [5] - Market attention is now focused on Applied Materials (AMAT) results, as the earnings season approaches its conclusion [5] Economic Impact - The end of the 43-day US federal shutdown is expected to have long-term effects, with the Congressional Budget Office estimating that US GDP could be approximately $11 billion lower by the end of 2026 than previously anticipated [2] - Uncertainty regarding the economic outlook is complicating market expectations for interest rate cuts, with a roughly 50-50 chance of a reduction at the Federal Reserve's upcoming meeting, a significant drop from around 95% odds a month ago [4]

We recently published 12 Latest Stocks on Jim Cramer's Radar . Lam Research Corporation (NASDAQ:LRCX) is one of the stocks Jim Cramer recently discussed. Lam Research Corporation (NASDAQ:LRCX) also makes and sells equipment used in semiconductor fabrication. Due to the booming demand for chips, Cramer is quite optimistic about the firm. In an earlier appearance, he commented that Lam Research Corporation (NASDAQ:LRCX)’s shares might still be worth buying despite experiencing a 65% parabolic move. In this ...

Core Insights - Investors are taking a bearish stance on Lam Research, with significant options trades indicating potential insider knowledge of upcoming events [1][2] - The sentiment among large investors is predominantly bearish, with 62% of trades being bearish compared to 12% bullish [2] - The expected price movements for Lam Research are concentrated between $85.0 and $160.0 over the past three months [3] Options Trading Analysis - The average open interest for Lam Research options is 1340.57, with a total trading volume of 260.00 [4] - Recent significant options trades include a mix of calls and puts, with notable amounts such as $112,155 for puts and $274,729 for calls [2][9] - Specific trades include bearish calls and bullish puts, indicating a complex trading strategy among investors [9] Company Overview - Lam Research is a leading manufacturer of semiconductor wafer fabrication equipment, specializing in deposition and etch processes [10] - The company has a strong market position, particularly with memory chipmakers, and counts major clients like TSMC, Samsung, Intel, and Micron [10] - Recent analyst ratings suggest a positive outlook, with target prices ranging from $160 to $200 [12][13] Market Performance - The current trading volume for Lam Research stands at 2,045,867, with the stock price at $161.36, reflecting a 1.37% increase [15] - The stock may be approaching overbought conditions according to RSI indicators [15] - An earnings announcement is anticipated in 77 days, which could impact future trading activity [15]

Company Focus - The discussion centers on identifying companies that are highly profitable versus those with revenues but lacking profitability [1] - Lam Research (LAM) is highlighted as a lucrative company in the current market cycle [2] - City upgraded LAM research from $175 to $190 [2] High Bandwidth Memory (HBM) Market - Lam Research is a key equipment provider for high bandwidth memory (HBM), which is in high demand in the data center sector [2] - Unprecedented demand for high bandwidth memory is noted [3] China Market Impact - China restrictions, potentially removing China from the equation, are mentioned [3] - Lam Research experienced a couple billion dollar hit due to China restrictions, with Tim Archer taking the lead [3] - The company is considered derisked from China, and orders continue to flow [4] Leadership - Tim Archer, previously from Novellus, is now leading the company [4]