Applied Materials, Lam Research, KLA Corp. turn around even as export regulations start
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Applied Materials (NASDAQ:AMAT), Lam Research (NASDAQ:LRCX) and KLA Corp. (NASDAQ:KLAC) turned around on Thursday even as the industry continues to deal with the fallout from the Biden Administration's export controls.
Applied Materials (AMAT) finished higher by nearly 4.5%, erasing earlier losses, even after it said on Wednesday that its fourth-quarter revenue would have a negative impact between $250M and $650M from the new regulations.
As such, it expects sales to be between $6.15B and $6.65B, below its prior outlook of $6.25B to $7.05B and below the consensus estimate of $6.67B.
Adjusted earnings per share are expected to be between $1.54 and $1.78, compared to estimates of $2.01 per share.
The Gary Dickerson-led Applied Materials (AMAT) also noted that the revised earnings outlook included a roughly 23-cent-per-share impact related to inventory and manufacturing charges related to the new export regulations.
Competitors Lam Research (LRCX) and KLA Corp. (KLAC) rose 5% and 1.4%, respectively, while chip equipment maker ASML Holding (ASML) closed up nearly 1.8%.
The new export controls are not hitting every semiconductor company equally. Synopsys (SNPS) gained more than 4% even as the company reiterated its fiscal fourth-quarter guidance and said the new export controls would not have a material impact on its business.
Taiwan Semiconductor (NYSE:TSM) shares closed with a near 4% gain as the global foundry giant reported third-quarter results that topped expectations, but cut its capital expenditure guidance for 2022 due to slowing chip demand and the export controls.
During the period, Taiwan Semiconductor (TSM) generated $20.23B in revenue and earnings per share of $1.79, topping estimates of $19.09B and $1.68 per share. Taiwan Semiconductor (TSM) attributed the strong quarterly performance in part by strong performance in smartphones, as smartphone-related revenue rose 25% from the previous quarter and accounted for 41% of its total revenue.
Taiwan Semiconductor (TSM) also said customers in North America accounted for 72% of its quarterly sales, up from 64% in the prior quarter.
Taiwan Semiconductor (TSM), along with Samsung (OTCPK:SSNLF) and South Korean memory chip maker, also earned one-year reprieves from the Biden Administration that will let them continue receiving chip-making equipment in China.
However, Taiwan Semiconductor (TSM) also cut its spending outlook for 2022 to $36B, down from a prior outlook of $40B-$44B.
Competitor GlobalFoundries (GFS) rose nearly 1% to finish the day at $50.49.
Several other big semiconductor companies also saw buying pressure in early trading on Thursday, as Qualcomm (QCOM) and Nvidia (NVDA) each rose nearly 4%, while Advanced Micro Devices (AMD) tacked on nearly 2%. Intel (INTC) gained 4.3%, while Broadcom (AVGO) and Micron Technology (MU) gained 1.7% and 4%, respectively. 
Earlier this month, Bank of America said that Lam Research (LRCX) would be one of the companies most impacted by the new export controls.