Why is Applied Materials stock down 6.1% today?

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Applied Materials slides 6.13% today

Highlights

Applied Materials reported fiscal Q3 2026 revenue of $9.12 billion, a 25% year-over-year increase.
Earnings guidance for fiscal Q4 2026 is $3.82 to $4.22 per share and the quarterly dividend remains $0.53 per share.
Shares of Applied Materials trade below key moving averages under sustained selling, with a likely short-term range of $416.9 to $460.5.

Revenue growth and steady dividends outweighed by persistent bearish sentiment

Applied Materials reported a 25% increase in fiscal Q3 2026 revenue to $9.12 billion and issued guidance for fiscal Q4 2026 earnings per share in the range of $3.82 to $4.22. The company reaffirmed its quarterly dividend at $0.53 per share, the same as the previous quarter. The annual forward dividend was set at $2.12 per share, representing a yield of about 0.47% at the prevailing share price, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Applied Materials under heavy technical and sentiment pressure. He notes sustained selling as the stock fell sharply after results, trading below critical 20- and 50-day moving averages. Fundamentals were strong, but market reaction suggests little faith in management's maintained dividend or outlook amid volatility. MACD, ADX, and other momentum indicators flag persistent bear control. "Without clear signs of reversal and with sellers in command, I would avoid any long positions at these levels."

Viktoras Karapetjanc, expert at Traders Union, views Applied Materials' 25% revenue gain as a signal of strong underlying business momentum. He points to the stable dividend and robust guidance as factors that bolster confidence. Despite recent selling, he believes the bullish macro structure remains intact long term. The current dip offers new entry setups for investors seeking quality exposure. "I see further growth potential, and this correction presents opportunities in a fundamentally strong name."

Sholanke Dele, market strategist, remains skeptical despite the earnings beat. He highlights persistent downside momentum and limited positive sentiment spillover from management's dividend stance. Macro headwinds and sector-wide outflows are weighing on short-term prospects. "In my view, the risk of further decline outweighs any near-term rebound signals here."

Short-term selling dominates as momentum gauges confirm bearish bias

Applied Materials is currently trading below its 20-day and 50-day moving averages at $475.45 and $516.81, while still holding above its 200-day moving average at $411.79. This signals selling pressure in the short and medium term, with some longer-term trend support remaining; immediate levels to watch are the near-term floor at $424.36 and ceiling at $450.74. Momentum indicators give a decisively bearish tone: the Moving Average Convergence Divergence (MACD) is firmly in 'Strong Sell' territory and the Average Directional Index (ADX) suggests a weak trend. Relative Strength Index (RSI), Commodity Channel Index (CCI), and Bull/Bear Power (BBP) all point to sellers dominating price action, with BBP indicating an oversold intraday environment. Stochastic RSI is elevated, hinting at a potential short-term buy opportunity, but this diverges from the prevailing downward momentum. The stock is trading at $428.55 after opening with a downside gap of about $34.33, or 7.52%, slipping $27.98 (6.13%) on the session and sitting near the day's high. Intraday volatility stands at 0.51%, reflecting mild upward retracement after heavy selling at the open.

Previously it was reported that Applied Materials continued to face significant short- and medium-term technical selling pressure despite strong quarterly results. The current session deepens that trend, and with volatility expected to remain elevated, traders should closely watch for any decisive move outside the $416.9 to $460.5 range as a signal of potential breakout or renewed downside 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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