Applied Materials Stock Dips After Mixed Earnings and China Sales Decline

The chip-equipment maker's Q4 results surpass expectations, but weak demand and export restrictions impact future outlook.

Applied Materials reported Q4 earnings of $2.32 per share, beating Wall Street's expectations of $2.19 per share.
The company anticipates Q1 revenue of around $7.15 billion, slightly below analysts' average estimate of $7.22 billion.
Sales in China, a significant market for Applied Materials, fell by 28% year-over-year due to U.S. export restrictions.
Despite strong AI chip demand, overall non-AI chip demand remains weak, affecting the company's future growth prospects.
Applied Materials' stock dropped over 5% in extended trading following the earnings report and guidance.