Applied Materials Stock Drops 75th in Market Activity Despite 7 Billion Revenue

On May 20, 2025, Applied Materials (AMAT) experienced a significant decline, with its trading volume reaching 8.86 billion, a 28.11% decrease from the previous day, ranking 75th in the day's market activity. The stock price fell by 0.13%.

During the second quarter of 2025, Applied Materials' Board of Directors approved a 15% increase in the dividend per share, marking another year of healthy financial performance. However, the company's shares fell in extended trading after reporting weaker-than-expected revenue for the quarter. The total revenue was $7.10 billion, slightly below the analyst forecast of $7.13 billion. Semiconductor revenue was $5.26 billion, missing the consensus estimate of $5.31 billion. The decline in revenue was largely attributed to lower sales in China, which accounted for about 25% of total sales during the quarter. Despite this, the company reported that it had not seen a significant shift in customer demand.

Investors are closely monitoring potential U.S. tariffs targeting chips and electronics, which have been exempt since early April. The stock had previously fallen nearly 40% between January and April due to concerns over export licensing rules tied to AI chips. However, it has since recovered 40% as trade tensions have eased. The company's financial results for the quarter showed total net revenue of approximately $7.1 billion, up 7% year-over-year, with growth across all business segments. The net income for the quarter was $2.14 billion, a 25.34% increase from the previous year.