Applied Materials shares fall amid lack of short-term guidance

Applied Materials shares experienced a significant decline following the SEMICON West industry trade show. The stock fell 5.1 percent on Friday to close at 364.15 euros, contributing to an 18 percent loss over a seven-day period. Investors reacted to the management's decision to focus on long-term development lines rather than providing concrete short-term forecasts for semiconductor industry investments.

Despite the recent volatility, Morgan Stanley maintains a 'Hold' rating on the company. Analysts expressed increased confidence in the firm's long-term strategy and competitive positioning following an investor meeting and a visit to the EPIC research center. Specifically, the growth in DRAM manufacturing equipment and process control business was noted as positive indicators that support the company's long-term objectives.

Applied Materials has set an ambitious target to reach 12 billion US dollars in service business revenue by 2030. While the market remains sensitive to visibility within the semiconductor value chain, analysts suggest that if the equipment market develops according to company expectations, long-term goals could potentially be raised.