Applied Materials Stock Drops Amid Weak Sales Outlook

Applied Materials Inc. experienced a significant stock decline after issuing a disappointing revenue forecast for the fiscal first quarter, predicting sales of $7.15 billion, below analysts' expectations of $7.25 billion. Despite strong demand for AI-related chips, other sectors like industrial equipment and vehicles are seeing reduced demand, impacting orders. Revenue from China has also decreased, though it remains a significant market. The company's profit outlook remains strong, with earnings expected to slightly exceed projections.