The semiconductor giant issued a a lackluster full-year revenue outlook
Shares of Applied Materials Inc (NASDAQ:AMAT) are down 2.3% to trade at $218.16 at last glance, brushing off better-than-expected results for the fiscal fourth-quarter. Weighing on the equity is a lackluster full-year revenue outlook as well as predictions of lower China spending amid U.S. curbs. Broader headwinds are also in effect as traders rotate out of the tech sector amid valuation concerns.
Nevertheless, no fewer than eight analysts hiked their price objectives, including B. Riley to $270 from $265. The majority of analysts already lean bullish, with 21 of the 35 brokerages in coverage sporting a "buy" or better rating, while the 12-month consensus target price of $233.62 is a 7.1% premium to current levels.
Today's losses have AMAT on track for its biggest weekly drop since August. The equity is extending a pullback from its Oct. 30, 52-week high of $242.50, but a familiar floor at the $200 level looks ready to contain losses. For 2025, the stock still sports a 34% lead.
Drilling down to today's options activity, 19,000 calls and 20,000 puts have already crossed the tape, which is six times the volume typically seen at this point. Expiring at the close, the weekly 11/14 200-strike put is the most active contract, with new positions being opened there.
It's also worth mentioning that the security usually outperforms options traders' volatility expectations, as evidenced by its Schaeffer's Volatility Scorecard (SVS) of 94 out of 100.