Applied Materials, the largest US semiconductor equipment maker, reported its Q4 2024 earnings, revealing a revenue of $7.05 billion, which surpassed estimates of $6.96 billion, and an adjusted EPS of $2.32, beating the expected $2.19. Despite these positive results, the company issued a revenue forecast for Q1 2025 of $7.15 billion, which is below Wall Street's expectations of $7.24 billion. The company also provided EPS guidance of $2.29, slightly above the expected $2.27, and a gross margin forecast. This cautious outlook, attributed to a slowdown in the Chinese market, led to a significant drop in Applied Materials' stock, falling over 8% pre-market. The company's shares also dragged down other semiconductor stocks, including KLA Corporation and Lam Research, which fell by 3% each, and the iShares Semiconductor ETF, which dropped by 1%.