U.S. stock market midday update: AXT down 9.82%: non-preferred rating + capacity challenges, meeting expectations difficult to support stock price

U.S. Stock Market Midday Update

AXT fell 9.82%. Based on recent key news:

1. On August 18, AXT announced its participation in several important semiconductor industry conferences, including the Needham Virtual Semiconductor Conference and Morgan Stanley's Asia Best Companies Day. These events may influence investors' expectations for the company's future development, leading to stock price fluctuations.

2. On August 18, market analysis pointed out that AXT was not listed as a preferred choice in analysts' recommendations, despite its rating being a moderate buy, which may affect investor confidence and lead to a decline in stock price.

3. On August 18, Morgan Stanley reported that as manufacturers increase production capacity, substrate supply is beginning to improve, but manufacturers will face challenges in converting wafers into finished laser products, which may affect AXT's market performance. The semiconductor industry is experiencing frequent conferences, focusing on market dynamics.

Stocks with High Trading Volume in the Industry

Applied Materials fell 3.60%. Based on recent news:

1. On August 18, Applied Materials showcased its innovative achievements in AI computing at SEMICON Taiwan 2026. Despite the technology forum attracting attention, it failed to boost the stock price. During the exhibition, company executives participated in multiple forums discussing innovation directions in the AI era.

2. On August 19, analysts pointed out that Applied Materials' non-GAAP gross margin expansion has stagnated at 50.4%, while the revenue share from the Chinese market has decreased to 28%, reflecting risks from U.S. export restrictions and geopolitical frictions, putting pressure on the stock price.

3. On August 17, DBS analyst Ling Lee Keng maintained a buy rating on Applied Materials with a target price of $710, but Morgan Stanley gave it a hold rating, indicating market divergence regarding its future performance. The semiconductor industry faces geopolitical risks.

Lam Research fell 6.05%. Based on recent key news:

1. On August 19, Lam Research CEO Timothy Archer sold 30,000 shares of stock worth $9 million, indicating a lack of confidence from executives in the current stock price, leading to a decline in stock price.

2. On August 18, Lam Research is facing U.S. export restrictions and trade policy constraints, affecting its semiconductor equipment sales to Chinese customers, increasing the risk of order delays and revenue fluctuations.

3. On August 17, Lam Research announced a global R&D lab expansion plan, expecting to invest $3 billion, increasing operating expenses, which may compress recent gross margins. The semiconductor industry faces policy and market volatility risks.

ASML fell 2.76%. Based on recent key news:

1. On August 19, ASML will showcase the latest advancements of its high numerical aperture extreme ultraviolet lithography equipment at SEMICON Taiwan 2026. This event may trigger market attention to its technological capabilities, leading to stock price fluctuations. Source: Zhitong Finance

2. On August 18, TSMC announced a significant increase in capital expenditure, which is expected to have a positive impact on equipment suppliers such as ASML. This news may boost market expectations for ASML and affect its stock price. Source: Wall Street Watch

3. On August 18, ASML's shareholding significantly increased in the second quarter, indicating investor confidence in its future performance. This change may affect market sentiment and lead to stock price fluctuations. Source: Jinshi Data The semiconductor industry is advancing rapidly, with noticeable capital inflows.

Stocks ranked at the top of the industry by market capitalization

KLA fell 3.70%. Based on recent key news:

1. On August 20, the U.S. Bureau of Industry and Security's restrictions on semiconductor equipment sales to China threaten KLA's market share, which accounts for 26% to 30% of its annual revenue. Additionally, KLA's gross margin decreased by 80 basis points year-on-year to 62.4%, reflecting input cost inflation and supply chain friction. Management failed to fully pass these costs onto customers, causing the stock price to fall below the 50-day moving average;

2. On August 18, KLA's CEO Gayn Erickson sold approximately $5.23 million worth of stock, leading to a decline in market confidence in the company's executive team and further exacerbating short-term selling pressure;

3. On August 17, analysts pointed out that KLA's interest rate swap exposure reached $2 billion, facing financial cost risks. Considering its price-to-earnings ratio exceeds 50 times, the stock price is susceptible to industry repricing. The semiconductor industry faces policy risks, with noticeable capital outflows