Why is Applied Materials stock down 5.5% today?

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Applied materials slides 5.51% today

Highlights

Applied Materials reported fiscal 2025 revenue of $28.4 billion and non-GAAP EPS of $9.50, underscoring strong operational performance.
Strategic moves included the NEXX acquisition and new partnerships in AI semiconductors with industry leaders EssilorLuxottica and TSMC.
The stock faces short-term selling pressure but holds above key support at $523.23, with an expected five-session range of $501.51 to $559.07.

Shareholder rewards and AI deals overshadowed by persistent selling

Applied Materials reported fiscal 2025 revenue of $28.4 billion and non-GAAP EPS of $9.50. The company completed the acquisition of NEXX, introduced new DRAM and packaging tools, and announced collaborations in AI semiconductors with EssilorLuxottica and TSMC. Shareholder returns included $5.84 billion in share repurchases and continued quarterly dividends, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, remains cautious about Applied Materials after its 5.51% drop. He points out that the stock stays pressured below its 20-day moving average, with only intraday buyer activity providing brief support. Kharitonov highlights oversold momentum indicators and an inability to break resistance at $533.88 as warning signs. Despite strong annual results and AI sector expansion, he sees this as a technical correction amplified by mixed sentiment. "I view near-term downside as likely unless the price can firmly reclaim the $533.88 level," says Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, sees longer-term positives for Applied Materials. He underlines impressive revenue growth, major acquisitions, and increased shareholder returns as supportive fundamentals. Karapetjanc notes robust demand in the AI semiconductor segment and ongoing industry partnerships. The expert believes that, despite short-term volatility, the bullish structure remains intact as long as the stock stays above support. "Current market offers multiple setups for further upside as consolidation paves way for renewed momentum," says Karapetjanc.

Mixed momentum as oversold signals clash with long-term support

Applied Materials is trading below the 20-day moving average (MA-20) at $610.59, but remains above the 50-day (MA-50) at $523.23 and the 200-day (MA-200) at $356.76. This setup highlights near-term selling, even as the broader trend from MA-50 and MA-200 stays bullish. Resistance is closest at $533.88 with support at $523.23. Momentum indicators are mixed: MACD signals Strong Buy, ADX signals Buy, but RSI at 47.98, CCI at -85.6, and Stochastic RSI at 0 suggest oversold conditions or Sell. Bull/Bear Power (BBP) is positive at 0.45, pointing to intraday buyer activity, but its oversold stance flags underlying weakness. Intraday volatility is 3.81%, with the price near the session high after an early downside gap. The stock has pulled back to $530, marking a 5.51% drop.

Earlier, analysts noted that Applied Materials faced near-term selling pressure despite maintaining a bullish long-term technical profile amid regulatory and order-related headwinds. The latest results reinforce these dynamics, and with volatility elevated, traders should watch for a decisive move outside the $501.51–$559.07 range to gauge the next directional trend.

Source of Data: AMAT Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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