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Semiconductor Equipment Maker KLA Tumbles as Rival Applied Materials Warns on China Weakness
Semiconductor Equipment Maker KLA Tumbles as Rival Applied Materials Warns on China Weakness
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BTCCSquare news:
KLA Corporation (KLAC) shares fell 8% intraday after competitor Applied Materials (AMAT) slashed its fiscal Q4 guidance, citing softening demand in China's semiconductor sector. Applied Materials' warning of a 15% sequential profit decline and 8% sales drop next quarter reflects broader pressures in chip manufacturing equipment.
The downturn stems from China's slowing absorption of semiconductor tools after years of heavy purchases. With both companies deriving roughly one-third of revenue from China, KLA faces similar headwinds. Applied Materials described the macroeconomic environment as creating "increased uncertainty and lower visibility" - a warning that resonated across the semiconductor capital equipment sector.
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