Why Applied Materials Stock Sank in October
Shares of Applied Materials (NASDAQ: AMAT) fell 10.1% in October, according to data from S&P Global Market Intelligence. The equipment maker for the semiconductor industry sank after its industry peer ASML Holding (NASDAQ: ASML) reported weak bookings last quarter. Applied Materials is also being investigated for unsanctioned sales to China. Applied Materials stock is up 30% in the last year after the company saw booming demand due to artificial intelligence (AI) spending but has fallen close to 30% from highs set earlier this year.
Here's why Applied Materials stock sank in October.
A declining Applied Materials stock didn't happen because of its own business, but due to a quarterly report from another semiconductor equipment maker called ASML. It said that bookings for new orders were just 2.6 billion Euros last quarter, which was a big disappointment for investors. Wall Street took this as a sign the entire semiconductor equipment market was in a slowdown, which is why Applied Materials stock fell on the same day as ASML.
Source Fool.com
