Applied Materials downgraded to Hold from Buy at Summit Insights

Summit Insights downgraded Applied Materials (AMAT) to Hold from Buy after its Q3 results and below-consensus guidance. The U.S. government export restrictions to China have likely driven pull-ins from Chinese customers, leading to excess capacity that may take several quarters to digest, the analyst tells investors in a research note. Uncertainty around Intel’s (INTC) 18A and 14A nodes is also creating further headwinds for WFE suppliers, while the muted demand across the PCs, smartphones, consumer electronics, and industrial/automotive markets will likely offset AI-related strength, the firm added.