Applied Materials Plummets 2.71% as $2.02B Volume Ranks 41st Among Active Stocks

On October 3, 2025, Applied Materials (AMAT) closed with a 2.71% decline, trading at a daily volume of $2.02 billion, ranking 41st among active stocks in the market. The drop came amid mixed signals from supply chain dynamics and sector-specific headwinds affecting semiconductor equipment manufacturers.

Recent reports highlighted renewed concerns over inventory correction cycles in the chipmaking industry, with analysts noting extended lead times for wafer fabrication tools. A shift in customer procurement strategies toward near-shoring and modular production models has led to delayed large-scale orders, creating short-term uncertainty for capital equipment providers like AMAT. Market participants also pointed to broader sector rotation, with investors favoring defensive plays over cyclical tech stocks ahead of macroeconomic data releases.

Technical analysis suggested the stock tested key support levels near its 200-day moving average, raising questions about the sustainability of its recent consolidation pattern. Options activity showed increased bearish positioning, with put options for the December expiration outpacing calls by a 3:1 ratio. However, long-term fundamentals remain intact, supported by ongoing investments in AI-driven manufacturing solutions and expanded service contracts with tier-1 foundries.

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