Applied Materials Shares Slide More Than 34% From 52-Week High as Investors Take Profits
AI Market Summary
Applied Materials' ~34% pullback from its 52-week high is framed as profit-taking rather than fundamental deterioration, while Q3 results show record $9.1B revenue (+25% YoY), expanding gross margin (50.4%) and record operating margin (34%). Continued AI-driven capex by cloud and chipmakers, high utilization at leading-edge logic/DRAM, and raised 2026 expectations underpin a supportive near-term demand and profitability backdrop for semiconductor equipment.
Impact level
● Medium
Affected assets
NCSKAMAT2USD/USDT-1.19%
AI Insight · NCSKAMAT2USD/USDTAI Insight
▲ Bullish
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Applied Materials has fallen more than 34% from its 52-week high, even as the company posted record Q3 revenue of $9.1 billion, up 25% year over year. Adjusted EPS rose 41% to $3.50, while adjusted gross margin increased to 50.4% and adjusted operating margin reached a record 34%. The pullback comes as AI infrastructure investment continues to support demand for semiconductor equipment. After the sharp decline, the stock’s risk-reward profile appears more attractive.
