US Stock After-Hours Movements: KLA Drops 3.43% as Semiconductors Repeat Consecutive Declines; High Valuations and Profit-Taking Concerns Weigh on Share Prices

US Stock After-Hours Movements

KLA dropped 3.43% in after-hours trading. Based on recent key news:

1. On October 20, semiconductor stocks repeated the consecutive decline record seen during the 2008 financial crisis, as the market reassessed the profit outlook for the chip industry. Technological advancements by Chinese memory manufacturers, AI investment demand, and high valuation risks have raised doubts about the profit prospects of the chip industry, leading to a decline in KLA's share price. Source: Zhitong Finance

2. On October 21, new-generation transistor architectures and multi-layer stacking technology for flash memory have imposed higher precision requirements on etching and deposition processes. Relevant companies include Lam Research, Applied Materials, and Tokyo Electron. Increased demand for advanced packaging has driven demand for high-specification equipment, affecting KLA as an equipment supplier. Source: Wall Street News

3. On October 19, analysts generally raised their target prices for KLA. Despite the share price decline, the market remains optimistic about its long-term prospects. Analysts believe that demand for KLA's equipment will continue to grow, particularly in equipment procurement driven by AI. Source: Jinshi Data. The semiconductor industry has recently shown weak performance, but equipment demand remains strong.

Stocks with Leading Industry Turnover

Lam Research dropped 7.89% in after-hours trading. Based on recent key news:

1. On October 21, Lam Research announced its first-quarter results for fiscal year 2027, with revenue of $8.219 billion, a year-on-year increase of 54%. However, the share price fell more than 6% after the earnings report. Market analysis suggests that the results only slightly exceeded expectations, the guidance range was wide, and coupled with a cumulative gain of approximately 80% in the year prior to the earnings report, this triggered profit-taking. Source: Zhitong Finance

2. On October 20, the semiconductor industry faced technological advancements and high valuation risks, leading the market to reassess the profit outlook for the chip industry. Visibility into orders for equipment manufacturers has extended, and wafer fab equipment spending is estimated to grow significantly. Source: Zhitong Finance

3. On October 22, analyst ratings for Lam Research were generally optimistic, with 21 analysts recommending a buy. The average target price implies a 54% upside from the current share price. Source: Zhitong Finance. Demand in the semiconductor industry is strong, and equipment spending is growing.

Applied Materials dropped 4.19% in after-hours trading. Based on recent key news:

1. On October 20, US cloud service provider CoreWeave faced financial pressure, drawing market attention to the rising debt levels across the industry and exacerbating concerns about debt-driven AI investments, leading to a decline in Applied Materials' share price.

2. On October 19, Needham lowered its target price for Applied Materials from $740 to $580, maintaining a "Buy" rating. This affected market expectations for its future performance, causing the share price to fall.

3. On October 20, Morgan Stanley projected that Applied Materials' revenue for fiscal year 2026 would reach $34.311 billion, further growing to $48.324 billion in fiscal year 2027. Although the earnings forecast was optimistic, the market favored the return on investment for its upstream suppliers more, impacting Applied Materials' share price performance. Demand in the semiconductor industry is strong, and equipment orders have grown significantly.

AXT Inc. dropped 4.77% in after-hours trading. Based on recent key news:

1. On October 20, US cloud service provider CoreWeave faced financial pressure, drawing market attention to the rising debt levels across the industry and exacerbating concerns about debt-driven AI investments. This news led to a 4.77% drop in AXT Inc.'s share price;

2. On October 20, tensions in the Middle East escalated. US Secretary of Defense Hegseth visited Israel and met with Israeli Prime Minister Netanyahu, further exacerbating market uncertainty and affecting investor confidence;

3. On October 20, air raid sirens were sounded in Riyadh, the capital of Saudi Arabia, accompanied by loud explosions. The Saudi-led coalition intercepted and destroyed ballistic missiles fired by Yemen's Houthi rebels toward Riyadh. Rising geopolitical risks affected market sentiment. Concerns about debt-driven AI investments intensified.