Individual company news drove significant stock movements on Tuesday, as a major investment from Warren Buffett’s Berkshire Hathaway sent UnitedHealth shares soaring, while disappointing guidance punished semiconductor equipment maker Applied Materials.
The market saw divergent reactions as investors processed a mix of high-profile investment disclosures, forward-looking financial forecasts, and regulatory news.
Buffett Bet Lifts UnitedHealth
UnitedHealth Group (UNH) was a standout performer, with its stock surging 8% after a regulatory filing revealed that Warren Buffett’s Berkshire Hathaway has taken a new 5 million share stake in the healthcare giant. The investment, often seen as a significant vote of confidence from one of the world’s most respected investors, triggered a wave of buying. Berkshire’s filing also disclosed new stakes in steel producer Nucor (NUE) and homebuilder D. R. Horton (DHI).
Guidance Miss Sinks Applied Materials
In the technology sector, Applied Materials (AMAT) experienced a sharp sell-off, with its shares plunging 12%. The drop came after the company issued a fourth-quarter forecast that fell well short of Wall Street expectations. Applied Materials projected its Q4 2025 earnings per share (EPS) to be between $1.91 and $2.31, below the analyst consensus of $2.38. Its revenue guidance of $6.2 billion to $7.2 billion also missed the consensus estimate of $7.32 billion, signaling potential headwinds for the chip industry supplier.
Intel Gains on Government Stake Report
Chipmaker Intel (INTC) moved in the opposite direction, rising 2% and extending its recent gains to nearly 10%. The positive momentum was fueled by reports that the U.S. government is considering taking a stake in the company, a move that could provide significant strategic and financial support as Intel works to expand its domestic manufacturing capabilities.
Hims & Hers Health Falls on FTC Probe News
Meanwhile, telehealth company Hims & Hers Health (HIMS) saw its stock decline by 5%. The drop followed a Bloomberg report that the Federal Trade Commission (FTC) is launching a probe into the company’s subscription cancellation practices. News of the regulatory scrutiny raised concerns among investors about potential fines or changes to its business model.
