Applied Materials Stock Surges 1.57% Despite 49.21% Volume Drop Ranks 123rd in Market Activity

On August 4, 2025, Applied Materials (AMAT) rose 1.57% to $182.82, outperforming the S&P 500’s 1.47% gain. Trading volume fell 49.21% to $0.76 billion, ranking 123rd in market activity. Analysts highlight the company’s August 14 earnings report, with projected EPS of $2.34 (+10.38% YoY) and revenue of $7.2 billion (+6.23% YoY). The stock’s full-year consensus estimates of $9.47 EPS and $28.81 billion revenue reflect 9.48% and 6.02% growth, respectively.

AMAT’s valuation metrics show a forward P/E of 19, below the 26.65 industry average, and a PEG ratio of 2, indicating mixed growth expectations. The Electronics - Semiconductors industry ranks 92nd in the Zacks Industry Rank, with AMAT slightly underperforming its sector’s year-to-date gains. Analyst optimism is evident in stable EPS estimates and a Zacks Rank of #2 (Buy), though liquidity-driven strategies suggest caution in volatile markets.

A backtested strategy of purchasing top 500 high-volume stocks and holding for one day returned 166.71% from 2022, outperforming the 29.18% benchmark by 137.53%. This underscores liquidity concentration’s role in short-term gains, particularly in volatile environments. However, risks from rapid market shifts and investor sentiment remain critical for high-volume positions like AMAT.