Applied Materials, Inc. (NASDAQ:AMAT) shares are trading lower by roughly 4% to $140.22 over the trailing five sessions amid recent volatility in semiconductor and chip stocks.
Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly told its suppliers to postpone the delivery of high-end chipmaking equipment amid demand uncertainty.
Applied Materials is a major supplier of semiconductor manufacturing equipment, including equipment used in the production of high-end chips.
If TSMC delays or postpones orders for such equipment, it directly affects Applied Materials’ revenue and earnings, as TSMC is one of its significant customers.
A decrease in orders from a major customer like TSMC can lead to a decline in Applied Materials’ financial performance, which can cause investors to sell off the company’s stock.
What Happened?
While suppliers anticipate this delay to be short-term, TSMC’s caution reflects concerns about the outlook for the market, primarily driven by weaker economic conditions, slower recovery in China, and softer end-market demand…Read More
According to data from Benzinga Pro, AMAT has a 52-week high of $155.26 and a 52-week low of $71.12.
