AMAT Stock Falls Even After Upbeat Q2, Outlook — Retail Opts To Buy The Dip

• Applied Materials’ revenue rose 11% to $7.9 billion, beating expectations of $7.68 billion; net profit increased 31%.
• CEO says AMAT’s semiconductor business will grow 30% in 2026. 
• Stocktwits sentiment for AMAT was ‘extremely bullish’ (100/100).

Applied Materials reported quarterly results on Thursday that surpassed analysts’ expectations and issued an upbeat forecast, but the stock could not hold onto its initial gains. Retail traders on Stocktwits overwhelmingly chose to buy the dip.

Following the company’s fiscal second-quarter earnings, AMAT initially climbed 6% in the after-market session before giving up the gains. The stock was down 2% in the overnight session, as of 11:30 pm ET. 

Such moves have been common this earnings season. Nvidia and Micron shares also dipped immediately after their blockbuster reports, only to rebound in the following days. Both stocks had rallied sharply heading into earnings, suggesting some profit-taking after the results.

AMAT is in the same bucket. The stock has climbed consistently over the past year, rising 165% in 12 months, and hit a fresh high of $440.56 earlier on Thursday.

Retail, Analyst View On AMAT

On Stocktwits, the retail sentiment for AMAT inched higher to the highest possible level, ‘extremely bullish’ (100/100), with 24-hour message volume for the ticker rising about 1,250%.

“$AMAT bears can pretend this wasn’t a blowout on all front. They are hitting on all cylinders and benefitting across the entire AL infrastructure platform. Shorts trying to keep a lid on it but to no avail. Heading north towards $500!!” said a trader. Another wrote: “$AMAT perfect time to buy the dip before big pump.

Jefferies raised its price target on AMAT to $510 from $415, keeping its ‘Buy’ rating, and said the key takeaway for the quarter was increased confidence in the durability of growth extending into 2027 beyond.

Chip-makers are now offering rolling eight-quarter forecasts with visibility extending into 2028, and Applied Materials remains especially well-positioned given its relative exposure to Leading Edge Foundry Logic and DRAM, the research firm said in an investor note.

AMAT Results Recap

The boom in AI development and data center capacity expansion is powering higher earnings for companies like Applied Materials that make the equipment to produce these specialized chips.

“The growth in AI that Applied has been investing for is now in full force,” CFO Brice Hill said in a company statement.

Applied Materials’ revenue rose 11% to $7.9 billion, beating expectations of $7.68 billion. Net profit increase 31% to $2.8 billion. Adjusted earnings increased to $2.86 per share, up from $2.39 a year earlier. Analysts polled by FactSet expected $2.68.

For fiscal Q3, the company expects adjusted EPS of $3.16 to $3.56 on revenue of $8.45 billion to $9.45 billion. Analysts expect $2.89 and $8.14 billion, respectively.

“Applied Materials delivered record quarterly performance, and we now expect our semiconductor equipment business to grow more than 30% in calendar 2026,” CEO Gary Dickerson said.

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