Applied Materials (NASDAQ:AMAT) reported record fiscal third-quarter results after Monday's close, posting $9.12 billion in revenue and $3.50 in earnings per share, both topping expectations on strong AI-driven demand. Despite the beat, shares fell 4.3% to trade at $511.75, as investors focused on softening China sales and concerns about the outlook. No fewer than four analysts cut their price target, including B. Riley to $700 from $790.
AMAT is stepping further from its June 30 all-time high of $739.67, down 30.8% since. The stock is testing the $500 level's support however, with the 80-day moving average also stepping up as support. AMAT is 99% higher in 2026 even after today's breather.
Options are picking up pace, with over 43,000 calls and 40,000 puts across the tape — volume that's six times the average intraday amount. The most popular contract today is the October 370 put with sell-to-open activity detected.
AMAT's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 92 out of 100, indicating the stock has tended to exceed option traders' volatility expectations during the past year.
