Wall Street Shakes Up Semiconductor Stocks: Key Upgrades and Downgrades Explained
Goldman Sachs and Jefferies updated ratings on major semiconductor stocks, citing AI spending, cyclical recovery, and execution risks. Here is what changed and why.
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Applied Materials Stock Drops 6% on China Export Curb Concerns
Applied Materials forecasts reduced China spending in 2026 due to U.S. export restrictions, causing shares to fall 6%. Company expects recovery in second half of 2026.
Applied Materials Forecasts $600M Revenue Hit from Expanded China Export Curbs
Applied Materials expects a $600 million revenue loss in fiscal 2026 due to new U.S. rules restricting exports of chip manufacturing machinery to China-based affiliates aimed at preventing circumvention of controls.
Why Morgan Stanley Is More Optimistic About Semiconductor Equipment Sales
Morgan Stanley hiked its 2026 chip equipment sales forecast to +10% (from +5%) because memory markets are improving. They upgraded Applied Materials and Lam Research, but lowered KLA Corp. due to high valuation despite strong growth.