Applied Materials' sales for the July quarter were slightly above original guidance, and the company guided for "modest" quarter-over-quarter growth in the October quarter, Nomura Instinet analyst David Wong tells investors in a research note titled "Earnings - Outlook OK, but No Real Pickup." He points out, however, that Applied Materials also indicated it believes its January 2020 quarter sales could be flat to down from the October quarter. Wong remains cautious on both the semiconductor and semiconductor equipment sectors and keeps a Neutral rating on Applied Materials with a $40 price target.