--- title: "U.S. stock market midday update: AXT down 14.46%: Positive agreement fails to mask supply improvement concerns" type: "News" locale: "en" url: "https://longbridge.com/en/news/296252952.md" description: "AXT Company fell 14.46%; Applied Materials fell 4.81%, with a transaction volume of USD 1.917 billion; ASML fell 4.37%, with a transaction volume of USD 1.39 billion; Lam Research fell 5.50%, with a transaction volume of USD 1.122 billion; KLA fell 5.28%, with a market value of USD 254.3 billion" datetime: "2026-08-18T16:23:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296252952.md) - [en](https://longbridge.com/en/news/296252952.md) - [zh-HK](https://longbridge.com/zh-HK/news/296252952.md) generator: "portal-rs" --- # U.S. stock market midday update: AXT down 14.46%: Positive agreement fails to mask supply improvement concerns **U.S. Stock Market Midday Update** AXT Inc. fell 14.46%, with increased trading volume. Based on recent key news: 1. On August 18, AXT Inc. announced its participation in several important financial conferences, including the Needham Virtual Semiconductor Conference on August 20 and the B. Riley Securities Consumer and TMT Conference in September. These conferences may influence investors' expectations for the company's future development, leading to stock price fluctuations. 2. On August 18, the market reacted positively to AXT Inc.'s agreements with Coherent and Lumentum, which involve large upfront payments and long-term capacity reservations, indicating strong growth in demand for InP substrates. However, Morgan Stanley pointed out that improvements in substrate supply may raise concerns about the company's future profitability, affecting the stock price. 3. On August 18, Morgan Stanley stated that the substrate supply bottleneck may shift from acquiring substrates to manufacturers' ability to convert wafers into finished laser products, which could impact AXT Inc.'s market competitiveness and profitability, thereby affecting the stock price. The semiconductor industry shows strong demand, and substrate supply is improving. **Top Stocks by Industry Trading Volume** Applied Materials fell 4.81%. Based on recent news, 1. On August 18, Applied Materials will lead several technology forums at SEMICON Taiwan 2026, focusing on key topics such as advanced processes, heterogeneous integration, panel-level packaging, and smart manufacturing, sharing innovative results driving efficient and energy-saving AI computing. The event's management team is participating in multiple forums and industry exchanges to enhance market attention. 2. On August 17, Berenberg Bank analysts maintained a buy rating on Applied Materials, setting a target price of $675. The analyst consensus is a strong buy, with an average target price of $695, implying a 29.83% upside from current levels. 3. On August 17, financial disclosures revealed that the proportion of revenue from China continues to shrink, with geopolitical trade frictions and changes in foreign customers' capital expenditure allocations posing ongoing revenue headwind risks. Company insiders sold over $169.7 million in stock over the past 90 days, indicating high sensitivity to any repositioning. The overall industry performance is strong, with significant impacts from policy changes. ASML fell 4.37%. Based on recent news, 1. On August 18, TSMC announced a significant increase in capital expenditures, expected to reach $60-64 billion, primarily investing in advanced processes, benefiting related equipment manufacturers. This news boosted market expectations for ASML's demand but failed to offset the negative impact of overall market sentiment, leading to a decline in stock price. 2. On August 17, MarketBeat reported that although ASML currently has a moderate buy rating among analysts, top analysts believe that five other stocks offer better investment value This has weakened market confidence in ASML, leading to a decline in its stock price. 3. On August 18, the second quarter institutional holding report showed that ASML's holdings increased from 12,000 shares in the first quarter to 30,000 shares. Despite the increase in holdings, it failed to boost the stock price, reflecting market concerns about its future performance. The overall industry performance is weak, and capital flows are unstable, necessitating caution against volatility risks. Lam Research fell 5.50%. Based on recent news, 1. On August 17, Lam Research announced it would invest over $3 billion to expand its global R&D laboratory network, increasing its experimental capacity by over 50%. This expansion aims to shorten product development cycles and support rapid advancements in AI semiconductor technology. However, the massive capital investment and operating expenses may threaten recent gross margin targets. 2. On August 18, analyst comments pointed out that Lam Research's stock trades at a price-to-earnings ratio of over 50 times, far exceeding the industry average and historical median, making it highly sensitive to P/E compression and sharp intraday declines. 3. On August 18, concerns about excess capacity in high-bandwidth memory and NAND intensified, and a rebalancing of chip manufacturers' inventories or reduced capital expenditures could prematurely decrease Lam Research's order volume, affecting sales of its advanced etching and deposition systems. The semiconductor industry has shown recent volatility, necessitating attention to macroeconomic data. **Stocks ranked among the top in industry market capitalization** KLA fell 5.28%. Based on recent key news: 1. On August 18, KLA reported a record quarterly booking of $607 million. However, CEO Gayn Erickson recently sold approximately $5.23 million worth of stock, raising market concerns and leading to a decline in stock price. 2. On August 17, Cantor analysts predicted a 60% return rate for KLA by 2027, but the market consensus is only moderate. Despite KLA's strong performance in the semiconductor equipment sector, any news from Washington could lead to a 10% fluctuation in stock price within a week. 3. On August 18, KLA was listed as a defensive cash flow stock, with investors treating it as a satellite position. The market has uncertainty regarding its future performance, leading to stock price volatility. The semiconductor industry has shown recent volatility, and investors should exercise caution ### Related Stocks - [AXTI.US](https://longbridge.com/en/quote/AXTI.US.md) - [AMAT.US](https://longbridge.com/en/quote/AMAT.US.md) - [ASML.US](https://longbridge.com/en/quote/ASML.US.md) - [LRCX.US](https://longbridge.com/en/quote/LRCX.US.md) - [KLAC.US](https://longbridge.com/en/quote/KLAC.US.md) ## Related News & Research - [Leonard Leblanc Sells 2,000 Shares of AXT (NASDAQ:AXTI) Stock](https://longbridge.com/en/news/296485912.md) - [AXT director Leonard J. 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