Applied Materials Inc (NASDAQ:AMAT) stock tanked by almost 9% on Tuesday amid a broad semiconductor and memory-equipment selloff.
The Nasdaq is down 2.18%, the S&P 500 is down 0.70%, and Technology is also lagging with a 3.0% drop.
The decline did not stem from company-specific negative news. Instead, investors sold across the chip and memory-equipment industry, dragging Applied Materials lower with its peers.
Technical Analysis
From a trend perspective, AMAT is still in a longer-term uptrend: it’s trading 55.9% above its 200-day SMA ($343.23) and 24.3% above its 100-day SMA ($430.54). The pullback is more about the stock slipping back below its shorter-term trend line, with shares now trading 9.9% below the 20-day SMA ($594.06).
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the August 13, 2026 (estimated) earnings report.
- EPS Estimate: $3.38 (Up from $2.48 YoY)
- Revenue Estimate: $9.00 Billion (Up from $7.30 Billion YoY)
- Valuation: P/E of 55.8x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $615.38. Recent analyst moves include:
- Morgan Stanley: Equal-Weight (Raises Forecast to $647.00) (July 6)
- Susquehanna: Positive (Raises Forecast to $900.00) (June 30)
- Cantor Fitzgerald: Overweight (Raises Forecast to $850.00) (June 29)
Top ETF Exposure
- iShares Semiconductor ETF (NASDAQ:SOXX): 4.81% Weight
- SMI 3Fourteen Full-Cycle Trend ETF (NASDAQ:FCTE): 5.03% Weight
- Parnassus Core Select ETF (NYSE:PRCS): 9.70% Weight
Significance: Because AMAT carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
Price Action
AMAT Stock Price Activity: Applied Materials shares were down 8.54% at $542.17 at the time of publication on Tuesday, according to Benzinga Pro data.
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