Applied Materials (AMAT) Stock Hurt by Intel's Earnings Results

NEW YORK (TheStreet) -- Applied Materials  (AMAT) stock closed lower by 4.34% to $16.08 on heavy trading volume in Friday's trading session, following the release of Intel's (INTC) 2015 fourth quarter financial results after yesterday's market close.

Analysts noted a fourth straight quarterly cut to Intel's semiconductor capital forecast, pressuring shares of many semiconductor equipment companies such as Applied Materials, Barron's reports.

Intel now expects $9.5 billion in semiconductor spending for 2016, lower than its prior $10 billion projection in November.

However, Applied Materials has a "significantly lower market share" than Intel does, Credit Suisse said in a note, Barron's adds. The firm expects a 1% reduction in its global wafer fab equipment (WFE) estimates, but only a 0.6% impact to Applied Materials's 2016 revenues.

"We continue to view LRCX/AMAT stocks as extremely attractive, given the relative discount to Semis, and the longer term opportunity from China Fab investments," the firm continued. 

About 20.74 million shares of the company were traded today, well above Applied Materials's average trading volume of roughly 15.08 shares per day.

Separately, TheStreet Ratings team rates Applied Materials as a "buy" with a ratings score of B.

The company's strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels outweigh the stock's lackluster performance.

You can view the full analysis from the report here: AMAT

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

AMAT Chart AMAT data by YCharts

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