Applied Materials Shares Dip on Record Revenue Amid Surging $1.99 Billion Volume as Q4 Outlook Clouds Growth Optimism

On August 14, 2025, Applied Materials (AMAT) reported a 0.94% decline in share price, with a trading volume of $1.99 billion, a 76.8% increase from the previous day. The company released Q3 2025 results showing record revenue of $7.3 billion, up 8% year-over-year, alongside GAAP and non-GAAP gross margins of 48.8% and 48.9%, respectively. Non-GAAP diluted EPS reached $2.48, a 17% year-over-year increase, driven by strong performance in semiconductor systems and display segments.

Management highlighted near-term uncertainties, including China’s capacity digestion and fluctuating demand from leading-edge customers, which are expected to pressure Q4 revenue. Despite these challenges, CEO Gary Dickerson emphasized confidence in long-term semiconductor industry growth. CFO Brice Hill noted strategic adaptations, including leveraging supply chain resilience and customer relationships, to navigate market volatility.

Segment analysis revealed robust margins: Semiconductor Systems generated $5.43 billion in revenue, with non-GAAP operating margins at 36.4%, while the Display segment saw operating income surge to $62 million, a 275% increase from Q3 2024. The company projected Q4 2025 revenue between $6.2 billion and $7.2 billion, with non-GAAP diluted EPS estimated at $2.11, reflecting cautious guidance amid macroeconomic headwinds.

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