Applied Materials Shares Plummet 5.52% as $2.27 Billion Volume Ranks 38th in Market

On October 7, 2025, Applied Materials (AMAT) closed with a 5.52% decline, trading at a volume of $2.27 billion ranked 38th in the market. The drop followed mixed signals from recent business updates and sector dynamics.

Analysts noted renewed pressure on the semiconductor equipment sector amid delayed client capital expenditure plans. A mid-September production guidance adjustment for its wafer fabrication division highlighted margin compression risks, while supply chain bottlenecks in critical raw material procurement added volatility. Institutional selling activity intensified in the wake of a short-term earnings revision by two major fund managers.

Strategic positioning appeared to shift as a key client announced a three-month pause in new tool orders. This followed a broader industry trend of inventory normalization, with AMAT's 12-month order backlog now showing a 14% sequential decline. Technical indicators suggest short-term oversold conditions, though bearish momentum indicators remain intact.

To run this back-test rigorously I need a few extra details: 1. Universe - Should I screen the entire U.S. equity universe or a specific index/segment? 2. Ranking rule - Do we rank by the previous day’s dollar volume or by share volume? 3. Transaction assumptions - Any commission or slippage to include? 4. Exit rule - Should positions be closed at the next day’s close? 5. Risk controls - Stop-loss parameters? Once I have this information I can generate the trading signals and run the back-test from 2022-01-01 through today.