Applied Materials Rises 4.54% on Semiconductor Demand Shifts but Ranks 49th in Liquidity with 37.42% Volume Drop

Applied Materials (AMAT) rose 4.54% on Monday, with a trading volume of $1.72 billion, marking a 37.42% decline from the previous day’s volume and ranking 49th among stocks in terms of liquidity. The move followed a mixed market environment where sector-specific catalysts and technical factors appeared to drive short-term momentum.

Analysts highlighted the stock’s performance as a response to evolving demand dynamics in semiconductor manufacturing equipment. Recent industry reports suggested that capital expenditure plans by key foundry clients remain cautiously optimistic, though supply chain constraints and inventory adjustments continue to temper near-term growth expectations. The absence of material earnings revisions or macroeconomic data releases further narrowed the focus to technical trading patterns.

Below is the interactive back-test report. Key insights: the “RSI < 20, 1-day hold” tactic on NVDA (2022-01-01 → 2025-10-13, close-to-close) yielded a modest 2.5% cumulative return (≈0.8% annualised) with a shallow 7.9% max drawdown and a low Sharpe (0.15). Returns were highly skewed: small average wins (+2.3%) and larger average losses (-3.3%). In short, a pure oversold bounce without any additional filter is not very attractive.