01:26 PM EST, 11/11/2024 (MT Newswires) -- Applied Materials ( AMAT ) is expected to report a similar quarter to its peers on Thursday, with dynamic random access memory and leading-edge logic chips strongly contributing to revenue, Morgan Stanley said in an earnings preview Monday.

But the investment bank said the semiconductor company's China contribution would likely be closer to 30%, compared with Lam Research (LRCX) at 37% and KLA (KLAC) at 42% as Applied Materials' ( AMAT ) China contribution in the prior quarter was 32% with DRAM dropping to "near zero."

Morgan Stanley said that for Applied Materials' ( AMAT ) October quarter, it models earnings per share of $2.18 on revenue of $6.97 billion, in line with the consensus of EPS of $2.19 on revenue of $6.96 billion.

Shares of Applied Materials ( AMAT ) were down 2.2% in recent Monday trading.

For Skyworks Solutions ( SWKS ) , Morgan Stanley said the company's exposure to Apple (AAPL) "may help offset Android weakness" amid a challenging radio-frequency environment.

"We model a seasonally strong September and continued sequential growth into the December quarter, but we do still see modest risk," the firm said.

Morgan Stanley said that for Skyworks' September quarter, which will be reported Tuesday, it models EPS of $1.52 on revenue of $1.03 billion, compared with the consensus of $1.52 and $1.02 billion, respectively.

Skyworks shares were down 2.5% in recent trading.

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