Applied Materials Stocks Fall 2.58% Despite 53% Revenue Jump and Upbeat Outlook

What happened

Applied Materials shares fell 2.58% to $371.11 during Friday trading, despite record fiscal fourth-quarter revenue of $10.41 billion, up 53% year over year. Fiscal 2026 revenue also reached a record $34.45 billion, and the company forecast first-quarter fiscal 2027 revenue of $11.10 billion, plus or minus $500 million.

Confirmed

Global impact / market context

The results show strong demand flowing into Applied Materials’ chip-making equipment and services, while its next-quarter forecast points to further revenue growth. If that demand continues, higher equipment sales could support revenue and cash available; however, the share decline shows strong results did not prevent selling that day.

Analyst inference

The article attributes the share decline to a wider chip-stock selloff following Nvidia’s leadership change, rather than to Applied Materials’ reported results. That is the article’s interpretation, not a confirmed cause; a broader retreat can weigh on chip-related shares even when an individual company reports growth.

Analyst inference

What to watch

1. Check whether first-quarter fiscal 2027 revenue reaches the company’s $11.10 billion midpoint forecast, since actual sales will show whether reported demand is continuing. Analyst inference
2. Watch for updates on Semiconductor Systems growth: the CEO said it was on track to grow more than 40% in calendar 2026, a company outlook rather than a completed result. Confirmed
3. Compare later share moves with company results and the wider chip-stock trend to assess whether industry-wide selling or Applied Materials’ own outlook is driving performance. Analyst inference

Evidence

• gurufocus.com