Applied Materials shares gain more than 5% after robust earnings, dividend, and buyback announcement

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Applied materials surges 5.03% today

Highlights

Applied Materials delivered record fiscal Q3 2026 revenue with Q4 guidance strong and free cash flow at $2.33 billion.
Advanced packaging and high-bandwidth memory drove a 52% year-over-year increase in DRAM revenue, aided by new Singapore capacity.
Shares of Applied Materials face near-term resistance with indicators soft and expected to consolidate in a $501.34 to $564.09 range.

Shareholder payouts rise as advanced memory and packaging drive gains

Applied Materials reported record fiscal Q3 2026 revenue and provided strong guidance for Q4, with operating cash flow exceeding $3 billion and free cash flow at $2.33 billion. The company returned $860 million to shareholders through dividends and buybacks, maintaining a $12.8 billion buyback authorization and planning to return 80% to 100% of free cash flow to shareholders. Growth in advanced packaging and high-bandwidth memory led to a 52% increase in DRAM revenue year over year, supported by expanded manufacturing capacity, including a new center in Singapore.

Anton Kharitonov, expert at Traders Union, notes that Applied Materials faces key resistance near its 50-day moving average. He sees near-term momentum signals as weak despite the solid Q3 revenue and strong guidance. The company’s record shareholder returns do not offset technical warning signs. Persistent bearish signals like a MACD sell and negative BBP support caution. "Recent price gains appear fragile and sellers remain in control — I expect limited upside unless momentum improves."

Viktoras Karapetjanc, expert at Traders Union, highlights Applied Materials’ strong execution and forward guidance. He believes double-digit cash returns and robust growth in advanced packaging create strong upside for shareholders. The bullish structure remains intact despite short-term resistance. "Further growth is likely — the market offers multiple setups for buying on dips in this leading technology name."

Jainam Mehta, market strategist, observes that Applied Materials trades in a volatile band with mixed momentum. He sees scope for tactical trades, as the sideways range allows for both breakout and breakdown setups. Divergence between price action and technical signals may offer contrarian entry points. "A potential breakout above $533.72 or breakdown below $525.24 could set up short-term trading opportunities for nimble investors."

Bullish support firms as resistance and weak momentum limit upside

Applied Materials is trading above the 20-day moving average (MA-20) at $524.29 and the 200-day moving average (MA-200) at $388.67, but remains below the 50-day moving average (MA-50) at $558.89, indicating near-term resistance and continued medium- to long-term bullish trend support. The Ichimoku Kijun at $525.24 now serves as the nearest support, while immediate resistance is defined by today’s high at $533.72. On the momentum front, the MACD remains in a strong sell configuration and the ADX signals a neutral trend. Both the RSI at 44.94 and CCI at -53.54 point to mild bearish or oversold conditions, while the Stochastic RSI sits in the neutral zone. Bull/Bear Power (BBP) at -5.65 highlights the dominance of sellers and points to oversold intraday readings. The stock gapped higher by 2%, with opening strength and a $25.53 gain placing the price near the session highs. Intraday volatility stands at 3.34%. Despite the advance, momentum signals remain soft, reflecting a divergence between price action and underlying strength.

Earlier, analysts noted that Applied Materials was experiencing technical resistance despite strong quarterly results, with risks tilted to the downside. The current setup introduces a potential shift, with immediate focus on price action near the $533.72 resistance, where a decisive move could redefine the short-term range.

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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