We recently compiled a list of the These 10 Firms Were Heavily Hit on Friday. In this article, we are going to take a look at where Applied Materials, Inc. (NASDAQ:AMAT) stands against the other stocks.

Wall Street’s main indices finished mixed on Friday, with the tech-heavy Nasdaq emerging as the sole gainer, rallying 0.41 percent. The Dow Jones, for its part, decreased by 0.37 percent, while the S&P 500 was little changed, dipping 0.01 percent.

Ten companies mirrored a mostly pessimistic broader market.

To come up with this list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A technician in a clean room assembling a semiconductor chip using a microscope.

Applied Materials, Inc. (NASDAQ:AMAT)

Applied Materials, Inc. (NASDAQ:AMAT) dropped its share prices by 8.18 percent on Friday, to close at $169.20 each as investors sold off positions following weak earnings and full-year outlook.

In a statement, Applied Materials, Inc. (NASDAQ:AMAT) said its net income for the first quarter of fiscal year 2025 fell by 41 percent to $1.185 billion from $2.019 billion in the same period a year earlier, even as revenues grew 7 percent to $7.166 billion from $6.707 billion year-on-year.

For the next quarter, Applied Materials, Inc. (NASDAQ:AMAT) expects revenues to settle at $7.1 billion. While that would be up on a year-on-year basis, investors took path from the company’s potential risks from exports, with the new tariff imposition expected to hurt the company's revenues by $400 million for the full fiscal year 2025, half of which will be booked in the second quarter of the year.

"For the second fiscal quarter, we are encouraged by the trends supporting continued customer investments to enable leading-edge technology inflections, while also taking into account export control-related headwinds," said Applied Materials, Inc. (NASDAQ:AMAT) Chief Finance Officer Brice Hill.

Overall AMAT ranks 6th on our list of the stocks that crashed on Friday. While we acknowledge the potential of AMAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for other AI stocks that are as promising as AMAT but that trade at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

 

Disclosure: None. This article is originally published at Insider Monkey.