Applied Materials' 15-min chart: MACD Death Cross and KDJ Death Cross Triggered.

On August 28th, 2025, at 14:15, the 15-minute chart for Applied Materials triggered a MACD Death Cross and a KDJ Death Cross. This indicates that the stock price has the potential to continue declining, as the momentum of the stock price is shifting towards the downside and has the potential to further decrease.

Applied Materials (NASDAQ: AMAT) reported its Q3 FY 2025 financial results on August 26, 2025, showcasing record revenue growth and robust profitability. The company's quarterly performance was underpinned by strong demand across semiconductor systems, services, and display segments. However, the report also highlighted significant challenges, particularly in the near-term outlook, due to macroeconomic uncertainty and policy pressures, notably in China.

Financial Highlights

- Revenue: Applied Materials achieved record revenue of $7.30 billion, up 8% year-on-year (YoY) and surpassing the consensus estimate of $7.21 billion.
- Semiconductor Systems: Revenue from this segment reached $5.43 billion, up 10% YoY, meeting expectations of $5.39 billion.
- Applied Global Services: Revenue from this segment was $1.60 billion, up 1% YoY, slightly above the $1.55 billion consensus.
- Display and Adjacent Markets: Revenue from this segment was $263 million, up 5% YoY, ahead of the $250 million consensus.

The company reported a non-GAAP gross margin of 48.9%, expanding 150 basis points YoY, and a non-GAAP operating margin of 30.7%, up 190 basis points YoY.

Key Challenges

The company cautioned that macroeconomic uncertainty and policy pressures, particularly in China, will weigh on near-term visibility. This includes digestion of capacity in China, a large backlog of pending export license applications, and non-linear demand from leading-edge customers tied to market concentration and fab timing.

Market Outlook

For Q4 FY 2025, Applied Materials guided revenue to ~$6.7 billion (+/- $500 million), below the consensus estimate of $7.3 billion, citing digestion of capacity in China, pending export license uncertainty, and non-linear leading-edge demand.

Technical Indicators

On August 28th, 2025, the 15-minute chart for Applied Materials triggered a MACD Death Cross and a KDJ Death Cross, indicating potential further decline in the stock price. This suggests a shift in momentum towards the downside, which could be influenced by the company's near-term challenges and uncertainties.

Conclusion

While Applied Materials delivered strong Q3 FY 2025 performance, the near-term outlook remains uncertain due to macroeconomic factors and policy pressures, particularly in China. Investors should closely monitor the company's trajectory, especially in the face of ongoing uncertainties and the potential impact on its leading-edge logic customers.

References

[1] https://futurumgroup.com/insights/applied-materials-q3-fy-2025-results-show-solid-quarterly-performance/