Applied Materials Stock Could be Flashing a Sell Signal on This Investor Day Omission

Dow Jones
4小时前

Shares of Applied Materials sank Tuesday and possibly were flashing a sell signal after the chip equipment maker specifically declined to provide a key forecast during the company's investor day event.

Applied Materials stock fell 7.7% to $459.20 on Tuesday and was on pace to close lower for a sixth consecutive trading session.

The sharp share price decline came as Applied Materials, the maker of wafer fab equipment which turns raw silicon wafers into microchips, held its investor day.

The event appeared mostly positive with the company outlining plans to return between 80% and 100% of its free cash flow to shareholders by 2030.

Applied Materials added that it aims to raise its wafer fab equipment, or WFE, market share by more than two percentage points by 2030. The company also said it's targeting higher profitability through 2030, with adjusted gross margin of approximately 54% and adjusted operating margin of around 40%.

One detail, however, seemed to have investors worried.

CEO Gary Dickerson declined to to give a forecast for the wafer fab equipment industry.

"What I would say is that I have tremendous confidence," Dickerson said. "The compound annual growth rate is going to be very strong."

That wasn't enough for investors, and Applied Materials stock on Tuesday made a decisive move below its 50-day moving average at around the $488.80 price level.

Shares were retreating back toward their 200-day moving average at the $436 level. The stock found support at that key technical level in mid-September before advancing higher. Applied Materials stock, however, hasn't closed below its 200-day moving since September 2025.

The stock performance has been solid this year, with shares gaining 79% this year. Shares, however, have fallen 10% this month and have declined 36% since closing at a record high of $723 on June 30.

If the stock doesn't find support at the 200-day line this time, it could be a signal to investors that shares will keep moving lower.

 

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