Select Committee on CCP Claims WFE Manufacturers Boosted Semiconductor Production in China
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 07 2025
0mins
Should l Buy AMAT?
Alarming Findings: The Select Committee on China revealed that several American and allied companies, including ASML, Tokyo Electron, and Applied Materials, have been supplying semiconductor manufacturing equipment to China, benefiting state-owned and military-linked enterprises.
National Security Concerns: Chairman John Moolenaar emphasized that these actions pose a threat to U.S. national security, as the technology provided could enhance China's military capabilities, urging for measures to prevent further transfers of critical equipment.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 339.880
Low
190.00
Averages
288.05
High
425.00
Current: 339.880
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Applied Materials Resolves Export Probe and Doubles Down on Chip Technology Investment
- Export Probe Resolution: Applied Materials has settled with the U.S. Department of Commerce, paying $252.5 million to resolve allegations of export violations to China from November 2020 to July 2022, allowing the company to refocus on its technology roadmap and long-term growth strategy.
- New Chipmaking Systems Launch: The company introduced new deposition, etch, and materials engineering systems aimed at enhancing the performance of 2nm and beyond logic chips, which are crucial for supporting more energy-efficient AI computing in response to rising market demands.
- EPIC R&D Center Collaboration: Samsung has joined Applied Materials' $5 billion EPIC R&D Center, set to become fully operational in spring 2026, designed to accelerate chip development through parallel process integration and significantly reduce time-to-market.
- Stock Price Movement: Applied Materials shares fell 1.24% to $335.68 in premarket trading on Thursday, nearing its 52-week high of $344.60, reflecting market interest in the company's long-term growth potential.
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Stock Market Plummets as AI Disruption Trade Intensifies
- Market Decline: The stock market experienced a significant drop on Thursday, with the S&P 500 falling below its 50-day moving average, indicating a notable deterioration in market sentiment that could lead to decreased investor confidence and increased selling pressure.
- Intensifying AI Trade: As the AI disruption trade intensifies, there is a growing focus on related tech stocks, which, despite potential short-term volatility, are still viewed favorably for their long-term potential, possibly attracting more capital inflows.
- Earnings Reports Released: Applied Materials and Arista Networks reported their earnings after hours, and the market's reaction to their performance will significantly impact investor confidence in tech stocks, especially in the current market environment.
- Investor Strategy Reevaluation: In light of increasing market volatility, investors may need to reassess their investment strategies to navigate potential risks and opportunities, particularly in the AI sector.
See More
Applied Materials Q1 2026 Earnings Call Highlights
- Performance Exceeds Expectations: Applied Materials reported Q1 revenue of $7 billion, surpassing the upper end of its guidance range despite a 2% year-over-year decline, while achieving a non-GAAP gross margin of 49.1%, indicating strong performance and profitability in the market.
- Strong Growth Outlook: Management anticipates over 20% growth in its semiconductor equipment business for 2026, primarily driven by accelerated investments in AI computing, with significant demand expected in the second half, highlighting the company's advantageous position in a rapidly growing market.
- New Product Launches: The company plans to introduce over a dozen new products in 2026, including three for advanced logic and DRAM, which are expected to drive revenue growth and further solidify its leadership in high-end technology sectors.
- Strategic Partnership Agreement: The EPIC co-development agreement with Samsung Electronics will accelerate the transfer of next-generation technologies into high-volume manufacturing, reflecting the company's strategic focus on innovation and responsiveness to market demands.
See More
Rivian Reports Q4 Earnings Beat Expectations
- Earnings Highlights: Rivian's Q4 revenue reached $1.29 billion, down from $1.73 billion year-over-year but exceeding the $1.27 billion market estimate, showcasing the company's resilience amid challenges.
- Automotive Revenue Decline: Automotive revenue totaled $839 million, a 45% year-over-year drop primarily due to reduced regulatory credit sales, fewer vehicle deliveries, and lower average selling prices, reflecting intensified market pressures.
- Software Services Surge: Software and services revenue soared 109% to $447 million, indicating significant progress in diversifying revenue streams, which could lay the groundwork for future profitability.
- Production and Delivery Metrics: The company produced 10,974 vehicles and delivered 9,745 in Q4, bringing total annual deliveries to 42,247 units, demonstrating ongoing efforts and potential in scaling production despite challenges.
See More
Applied Materials Exceeds Earnings Expectations
- Earnings Beat: Applied Materials reported Q1 revenue of $7.01 billion, a 2% decline year-over-year, yet surpassing analyst expectations of $6.88 billion, demonstrating the company's resilience and competitive strength in the market.
- Strong Future Outlook: The company forecasts earnings per share of $2.64 for 2026, significantly above the street estimate of $2.28, reflecting management's confidence in future growth, particularly amid accelerating investments in AI infrastructure.
- Semiconductor Equipment Growth: CFO Brice Hill indicated that the semiconductor equipment business is expected to grow over 20% in 2026, signaling a stronger performance in the second half of the year, which further solidifies the company's leadership position in the industry.
- Market Sentiment Shift: Retail sentiment on Stocktwits shifted from 'bearish' to 'bullish' regarding AMAT shares in the past 24 hours, indicating investor recognition of the company's earnings, with AMAT stock rising over 81% in the past year.
See More
Applied Materials AMAT Q1 2026 Earnings Transcript
See More
Applied Materials Resolves Export Probe and Doubles Down on Chip Technology Investment
- Export Probe Resolution: Applied Materials has settled with the U.S. Department of Commerce, paying $252.5 million to resolve allegations of export violations to China from November 2020 to July 2022, allowing the company to refocus on its technology roadmap and long-term growth strategy.
- New Chipmaking Systems Launch: The company introduced new deposition, etch, and materials engineering systems aimed at enhancing the performance of 2nm and beyond logic chips, which are crucial for supporting more energy-efficient AI computing in response to rising market demands.
- EPIC R&D Center Collaboration: Samsung has joined Applied Materials' $5 billion EPIC R&D Center, set to become fully operational in spring 2026, designed to accelerate chip development through parallel process integration and significantly reduce time-to-market.
- Stock Price Movement: Applied Materials shares fell 1.24% to $335.68 in premarket trading on Thursday, nearing its 52-week high of $344.60, reflecting market interest in the company's long-term growth potential.
See More
Stock Market Plummets as AI Disruption Trade Intensifies
- Market Decline: The stock market experienced a significant drop on Thursday, with the S&P 500 falling below its 50-day moving average, indicating a notable deterioration in market sentiment that could lead to decreased investor confidence and increased selling pressure.
- Intensifying AI Trade: As the AI disruption trade intensifies, there is a growing focus on related tech stocks, which, despite potential short-term volatility, are still viewed favorably for their long-term potential, possibly attracting more capital inflows.
- Earnings Reports Released: Applied Materials and Arista Networks reported their earnings after hours, and the market's reaction to their performance will significantly impact investor confidence in tech stocks, especially in the current market environment.
- Investor Strategy Reevaluation: In light of increasing market volatility, investors may need to reassess their investment strategies to navigate potential risks and opportunities, particularly in the AI sector.
See More
Applied Materials Q1 2026 Earnings Call Highlights
- Performance Exceeds Expectations: Applied Materials reported Q1 revenue of $7 billion, surpassing the upper end of its guidance range despite a 2% year-over-year decline, while achieving a non-GAAP gross margin of 49.1%, indicating strong performance and profitability in the market.
- Strong Growth Outlook: Management anticipates over 20% growth in its semiconductor equipment business for 2026, primarily driven by accelerated investments in AI computing, with significant demand expected in the second half, highlighting the company's advantageous position in a rapidly growing market.
- New Product Launches: The company plans to introduce over a dozen new products in 2026, including three for advanced logic and DRAM, which are expected to drive revenue growth and further solidify its leadership in high-end technology sectors.
- Strategic Partnership Agreement: The EPIC co-development agreement with Samsung Electronics will accelerate the transfer of next-generation technologies into high-volume manufacturing, reflecting the company's strategic focus on innovation and responsiveness to market demands.
See More
Rivian Reports Q4 Earnings Beat Expectations
- Earnings Highlights: Rivian's Q4 revenue reached $1.29 billion, down from $1.73 billion year-over-year but exceeding the $1.27 billion market estimate, showcasing the company's resilience amid challenges.
- Automotive Revenue Decline: Automotive revenue totaled $839 million, a 45% year-over-year drop primarily due to reduced regulatory credit sales, fewer vehicle deliveries, and lower average selling prices, reflecting intensified market pressures.
- Software Services Surge: Software and services revenue soared 109% to $447 million, indicating significant progress in diversifying revenue streams, which could lay the groundwork for future profitability.
- Production and Delivery Metrics: The company produced 10,974 vehicles and delivered 9,745 in Q4, bringing total annual deliveries to 42,247 units, demonstrating ongoing efforts and potential in scaling production despite challenges.
See More
Applied Materials Exceeds Earnings Expectations
- Earnings Beat: Applied Materials reported Q1 revenue of $7.01 billion, a 2% decline year-over-year, yet surpassing analyst expectations of $6.88 billion, demonstrating the company's resilience and competitive strength in the market.
- Strong Future Outlook: The company forecasts earnings per share of $2.64 for 2026, significantly above the street estimate of $2.28, reflecting management's confidence in future growth, particularly amid accelerating investments in AI infrastructure.
- Semiconductor Equipment Growth: CFO Brice Hill indicated that the semiconductor equipment business is expected to grow over 20% in 2026, signaling a stronger performance in the second half of the year, which further solidifies the company's leadership position in the industry.
- Market Sentiment Shift: Retail sentiment on Stocktwits shifted from 'bearish' to 'bullish' regarding AMAT shares in the past 24 hours, indicating investor recognition of the company's earnings, with AMAT stock rising over 81% in the past year.
See More
Applied Materials AMAT Q1 2026 Earnings Transcript
See More
