PomegraApplied Materials Stock Falls 6% After Lam Research Guidance
Why is Applied Materials stock down today?
Applied Materials (AMAT) stock fell 6% on Thursday to about $385 after Lam Research's supply warning dragged chip equipment shares lower, with KLA (KLAC) also down about 6%.
Key numbers
| Applied Materials (AMAT) 1-day move | ~$385-6% |
|---|---|
| Lam Research (LRCX) 1-day move | ~$237-9% |
| Lam Dec-quarter sales forecast | $8.6B ± $0.4BHeld back by supply limits |
| Chip ETF (SOXX) | —-4% |
| Nasdaq Composite | 25,947.66-2.83% |
What happened
Applied Materials (AMAT) stock fell 6% on Thursday to about $385 after Lam Research's supply warning dragged chip equipment shares lower, with KLA (KLAC) also down about 6%. Lam, which makes machines used to build computer chips, reported record sales of $8.22 billion but said its next-quarter sales forecast of $8.6 billion would have been higher without parts shortages. Lam shares fell about 9%, and a broad chip fund (SOXX) dropped 4% as investors worried that AI data center building may be slowing.
Why it matters
Applied Materials sells the machines that chipmakers need to build AI chips, so its share price is a signal for how long AI spending will last. Lam said supply, not weak orders, held back its forecast, but investors had expected more growth. Chip stocks are a big part of tech funds, so the drop also pulled the Nasdaq down 2.83%.
Who this affects
- MarketbearishMedium impact
- Tech-focused investors took losses as the Nasdaq fell 2.83%.
- CompanybearishMedium impact
- Applied Materials shareholders lost about 6% in one day.
- CompetitorsbearishMedium impact
- Lam Research fell most; KLA matched Applied Materials' drop.
- IndustrybearishMedium impact
- Chip equipment makers face parts shortages capping near-term sales.
Applied Materials vs Lam Research, KLA, ASML
How we got here
Lam Research reports record $8.22B sales and guides $8.6B, citing supply constraints.
Lam falls about 9%; Applied Materials and KLA drop about 6%; chip ETF slides 4%.
Brent crude climbs to $113 as the Nasdaq slides 2.83% in a risk-off day.
What to watch
- Whether chip equipment makers say parts shortages are easing; Lam's CEO expects relief 'very shortly'.Q4 2026
- Applied Materials' next results and any outlook for chipmaker equipment spending.Q4 2026
- Oil near $113 and falling Treasury yields, which are driving the risk-off mood.2026-10-23
Educational content only. Not investment advice.
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