Applied Materials shares drop about 4.5% after Q3 revenue update and announcement of new semiconductor R&D center

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Applied materials slides 4.48% today

Highlights

Applied Materials reported third-quarter revenue of $9.12 billion with annual revenue of $28.37 billion and net profit of $7.00 billion.
The company announced a $5 billion semiconductor research and development center and increased spending on advanced packaging technologies.
Shares of Applied Materials are under seller pressure, trading below key moving averages, with an expected five-session range of $369.81 to $451.67.

ETF buying offset by persistent sell-off despite new R&D hub

Applied Materials reported third-quarter revenue of $9.12 billion as of July 26, 2026, with strong annual revenue of $28.37 billion and net profit of $7.00 billion. The company announced the launch of a $5 billion semiconductor research and development center in Silicon Valley and continued to increase investment in advanced packaging technologies. ETF inflows were recorded as 31 funds acquired $147 million in shares on October 13, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, highlights sustained technical weakness in Applied Materials. He notes the stock is deeply oversold, with prices now testing important support after sliding below all major moving averages. Negative oscillator readings and persistent selling overshadow even the robust reported revenue and institutional inflows. Kharitonov warns that ongoing investments, while positive long-term, cannot offset short-term downside risk. "There is no real sign of immediate recovery, and the probability of further losses remains elevated until momentum shifts," he says.

Viktoras Karapetjanc, expert at Traders Union, maintains a constructive view on Applied Materials despite near-term declines. He emphasizes that the company’s strong revenue, substantial net profit, and aggressive R&D investments reinforce the underlying bullish structure. Ongoing ETF inflows and expansion in advanced technologies signal confidence from institutional investors. Karapetjanc sees further growth potential as the company positions for the next cycle. "This market offers a setup where long-term holders should expect eventual upside as the innovation story remains intact," he states.

Sholanke Dele, market strategist, sees recent price action as a strong warning for Applied Materials. He points out that broad market sentiment has turned negative, with the stock’s volatility underscoring uncertainty despite positive earnings news. Macroeconomic headwinds and capital rotation away from semiconductors are weighing on confidence. "Caution remains key, as downside momentum takes priority over any long-term optimism right now," Dele advises.

Oversold momentum as technical levels signal persistent weakness

AMAT is trading below its 20-day, 50-day, and 200-day moving averages ($492.23, $484.56, and $438.28, respectively), which points to persistent downside momentum across short, medium, and long-term horizons. The near-term ceiling is established at $418.94, and immediate support resides at $409.12, with the long-term trend bias still bullish due to the 50-day above the 200-day. Oscillator readings reinforce a bearish profile: RSI at 32.84, CCI at -144.47, Bull/Bear Power at -48.66, and Stochastic RSI at 0 all flag strongly oversold conditions. MACD and ADX remain neutral, while the Awesome Oscillator confirms negative momentum. Today’s trading features a $19.27 or 4.48% drop, with a downward gap of $8.85 on the open, persistent intraday selling, and volatility at 4.32%.

Earlier, analysts noted that Applied Materials faced persistent selling pressure despite continued R&D investments and industry partnerships. The latest price action and momentum indicators reinforce the prevailing downside scenario, with $409.12 now serving as a critical support level that warrants close monitoring for signs of an accelerated decline.

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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