AMAT slides over 3% as stock remains pinned below key moving averages despite strong earnings

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Applied materials slides 3.29% today

Highlights

Applied Materials reported record fiscal Q3 2026 revenue of $9.12 billion with earnings per share of $3.50 reflecting robust AI chip equipment demand.
The company set a quarterly dividend of $0.53 per share, resulting in an annualized yield of $2.12 and an 18.28% payout ratio.
Shares of Applied Materials are under sustained selling pressure below key moving averages, with technical indicators showing strong downward momentum and a projected 5-day trading range of $428.29 to $459.04.

Analyst optimism and dividend boost fail to reverse selling trend

Applied Materials reported a record fiscal Q3 2026, with revenue of $9.12 billion and earnings per share of $3.50, driven by strong demand for AI chip equipment. The company also announced a quarterly dividend of $0.53 per share, equivalent to an annualized dividend of $2.12 with a payout ratio of 18.28%. This was accompanied by upward revisions to earnings per share estimates by some analysts, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, observes that Applied Materials faces persistent downward technical pressure despite robust quarterly results. He notes that negative momentum dominates, with multiple sell signals and oversold conditions providing little sign of reversal. The expert is wary of the declining trend, as price action remains weak even after record earnings and a dividend announcement. Kharitonov stresses that the weak ADX and consistently negative intraday flows undermine confidence in a near-term bounce. "Until strong buying support emerges or momentum turns, I see heightened risk and limited upside here."

Viktoras Karapetjanc, expert at Traders Union, believes the fundamental story for Applied Materials is highly constructive. He highlights record revenues, increasing demand for AI chip equipment, and a disciplined dividend policy with a low payout ratio. Karapetjanc sees analysts raising earnings estimates as a clear sign of lasting institutional confidence. Despite the recent selloff, he asserts the longer-term bullish structure remains fully intact above the MA-200. "I expect further growth, as strong fundamentals and sector momentum present attractive opportunities for forward-looking investors."

Parshwa Turakhiya, analyst, notes that short-term sentiment has shifted sharply bearish after Applied Materials opened lower. He points out that momentum indicators signal persistent selling, yet the oversold readings may offer tactical bounce setups for agile traders. Turakhiya sees near-term volatility clustering around key support at $428.29. "For those watching intraday moves, I see opportunity in managing both upward rebounds and breakdown risks in this volatile zone."

Downside bias dominates as negative momentum and oversold signals align

Applied Materials is trading below its MA-20 at $508.28 and MA-50 at $547.96, but remains above its MA-200 at $402.75, signaling ongoing short- and medium-term downward pressure while preserving a longer-term bullish structure. The nearest resistance is set at $443.55, with short-term support at $428.29. Momentum signals remain negative, as both MACD and RSI forecast "Sell." The ADX is weak at 11.98, indicating a lack of trend strength. The RSI stands at 37.05, Stochastic RSI is at 0, CCI prints -133.63, and BBP measures -23.93, all confirming sellers dominate intraday momentum and conditions are oversold. The Awesome Oscillator is also negative, reinforcing the downward movement. The asset is trading at $443.33 after starting with a downside gap of about $7.59, or 1.66%. Price is near daily lows and intraday volatility is 1.78%, with selling pressure sustained since the open and strongly aligned with the momentum bias.

Previously it was reported that Applied Materials was facing near-term technical resistance despite robust quarterly results, with analysts highlighting a divergence between strong fundamentals and weak momentum signals. The current setup deepens this narrative, as renewed downside pressure and continued negative momentum reinforce the need to watch support at $428.29 for signs of either stabilization or additional risk.

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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