Applied Materials Stock Enjoying AI Optimism Before Earnings

Applied Materials Inc (NASDAQ:AMAT) is scheduled to report fiscal third-quarter earnings after the close on Thursday, Aug. 13. According to Zacks Research, analysts expect earnings of $3.36 per share on revenue of $9.00 billion, representing a 35.5% year-over-year increase in earnings. Investors will be watching for updates on AI-driven semiconductor spending, advanced chip manufacturing demand, and the company's outlook for wafer fabrication equipment.

Applied Materials was last seen up 4.2% at $547.55, benefiting from a wave of optimism across the AI infrastructure space after upbeat earnings reactions from CoreWeave (CRWV), Super Micro Computer (SMCI), and more. AMAT remains 25% below its June 30 record high of $739.67, though the pullback was contained by its 126-day moving average. Year to date, the equity is still up an impressive 113%.

For Friday's session, options traders are pricing in a 9.9% post-earnings move, regardless of direction, which is well above Applied Materials stock's average post-earnings swing of 6.1% over the last eight quarters. AMAT has only finished higher after two of its last eight reports. 

Options traders have turned increasingly bearish ahead of the event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio of 1.24 ranks higher than 86% of readings from the past year.