- Applied Materials will post its FQ2 earnings report on May 19. Semi investors have become skittish over macro concerns and a potential industry downturn.
- Despite its highly robust FCF yields, AMAT stock has fallen 30% from its January highs. Therefore, we believe that the market has been digesting the industry's massive 2020 surge.
- Our price action analysis suggests a massive bull trap occurred in January 2022. Moreover, a series of critical resistance zones have formed.
- We revise our rating from Buy to Hold, given AMAT's weaker technical outlook, impacting its risk/reward profile.
For further details see:
Applied Materials Stock: The Sell-Off Might Not Be Over