Applied Materials (AMAT) Shares Soar 3.68% on Earnings Outlook

Applied Materials (AMAT) shares surged 3.68% intraday, reaching their highest level since February 2025, marking a two-day winning streak with a cumulative gain of 11.19%.

The strategy of buying AMAT shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.98% annualized gain. However, the maximum drawdown of 12.76% during the 2023 bear market highlighted its vulnerability in downturns. Overall, this strategy provided stability but showed limited upside potential, making it suitable for investors seeking consistent returns with lower risk.

Applied Materials has projected non-GAAP earnings to be $2.30 per share, with an estimated range of $2.12 to $2.48. This projection aligns closely with the Zacks Consensus Estimate of $2.31 per share. The upcoming earnings report is anticipated to show a 10.5% increase in quarterly earnings compared to previous periods, which could positively influence investor sentiment and stock performance.

Analysts have been actively revising their price targets and ratings for AMAT. Stifel analysts maintained a Buy rating and set a price target of $195.00. B. Riley analyst Craig Ellis lowered the firm's price target from $250 to $215 but kept a Buy rating. Cantor Fitzgerald also adjusted its price target, reducing it from $220 to $200, while maintaining an Overweight rating. These adjustments reflect the analysts' confidence in the company's future prospects and can impact investor expectations and stock movements.

Hudson Bay Capital Management LP's recent acquisition activity and the stock's trading range between its fifty-two week low of $123.74 and high of $255.89 suggest significant investor interest and dynamic trading behavior. This heightened activity could contribute to the stock's recent price movements and overall market sentiment.