Applied Materials stock price drops before earnings release, Lynx issues warning

LootboxPhobia · 2026-02-12T11:56:00+00:00

Applied Materials stock price fell 1.14% in pre-market trading as Lynx Equity Strategies remains cautious about the upcoming earnings report, concerned that market expectations are overly optimistic. Although the DRAM heavy-capex cycle may support growth, Lynx believes it is not enough to improve Applied Materials' relative performance against competitors.

LootboxPhobia

2026-02-12 11:56:00

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Investing.com – Applied Materials (NASDAQ:AMAT) stock fell 1.14% in pre-market trading after Lynx Equity Strategies expressed cautious views ahead of the company’s upcoming earnings report.

As Lynx voiced concerns that market expectations may be overly optimistic, the semiconductor equipment manufacturer’s stock declined. This cautious stance comes as investors prepare for Applied Materials’ financial results, with particular attention to the company’s performance in the current market environment.

Lynx Equity highlighted potential challenges faced by Applied Materials, especially issues related to the expected heavy capital expenditure cycle for DRAM in the semiconductor industry. While this cycle could support the company’s absolute growth, Lynx questioned whether it would be enough to improve AMAT’s performance relative to competitors.

“Overall, we are cautious about the earnings report compared to Wall Street’s optimistic expectations. During the DRAM heavy capital expenditure cycle, as long as full-year revenue growth aligns with WFE growth, Applied Materials’ stock could make some progress on an absolute basis. However, we believe that relying solely on the DRAM cycle is insufficient to narrow the performance gap with Lam Research (NASDAQ:LRCX),” Lynx stated in its report.

The analyst comments imply that while Applied Materials may benefit from increased investment in storage chips, these gains may not be enough to outperform competitors like Lam Research in the short term.

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