Applied Materials (AMAT) Stock Soars 12.30% in Four Days Despite Mixed Earnings

Applied Materials (AMAT) shares rose 0.35% today, marking the fourth consecutive day of gains, with a 12.30% increase over the past four days. The stock price reached its highest level since February 2025, with an intraday gain of 1.29%.

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. The 5-year total return was 234.96%, with a compound annual growth rate (CAGR) of 18.98%. This indicates that while there were some fluctuations, the overall trend was positive. However, the recent 1-week holding period yielded no additional returns, suggesting that holding the stock for a longer period might be more beneficial.

Applied Materials recently released its fiscal second-quarter 2025 earnings, which showed a mixed performance. The company exceeded earnings estimates by 3.46% and slightly surpassed revenue expectations by 0.28%. However, the overall revenue figures fell short of Wall Street's projections for the quarter.

Following the earnings announcement, AMAT's stock experienced a significant drop of over 4% in after-hours trading. This decline was primarily due to the mixed earnings results and the lower-than-anticipated revenue figures, despite the company's earnings growth.

One of the key factors contributing to the stock's volatility was the notable decline in sales from China. This reduction in sales led to a near 5% drop in AMAT's stock during after-hours trading, reflecting investor concerns over the impact of reduced sales in a crucial market for the company.

Despite the challenges, Applied Materials provided guidance for the upcoming quarter, projecting adjusted earnings of $2.35 per share on revenue of $7.2 billion. This guidance aligns closely with Wall Street's expectations, indicating that customer demand remains stable despite economic and trade challenges. This resilience in market conditions suggests that the company is well-positioned to navigate current obstacles.