Applied Materials Weak Forecast Fans Concerns Over Chip Boom End


– Applied Materials Inc, the world’s largest supplier of equipment used to make chips, forecast current-quarter profit and revenue below Wall Street estimates, adding to fears that a two-year chip boom may be losing steam.

Shares of the company, whose results are seen as the bellwether for the chip industry, were down 4 percent at $45.55 in extended trading on Thursday. Rival Lam Research Corp also dropped about 2 percent.

Investors have worried that slowing smartphone growth and newer technologies would prompt chipmakers to rein in capital spending and lower demand for chip-making equipment.

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