Workflow
Chip Hardware Stock Needs a Big Post-Earnings Win
Applied MaterialsApplied Materials(US:AMAT) Schaeffers Investment Research·2025-05-15 17:08

Core Insights - The success of Applied Materials Inc (NASDAQ:AMAT) is closely linked to the resolution of U.S.-China trade tensions, with analysts expecting Q2 revenue of $7.13 billion and earnings of $2.31 per share, aligning with prior guidance [1] Stock Performance - Applied Materials stock is currently up 0.8% at $175.46, marking a fourth consecutive gain and a year-to-date increase of 7.9%. The stock has reclaimed its 126-day moving average and is testing its 200-day trendline, potentially closing above it for the first time since October [3] Earnings Reactions - Historically, AMAT has experienced negative post-earnings reactions, with declines in three of the last four sessions following earnings reports, including an 8.2% drop in February. The stock averages a 4.6% move after earnings, while the options market is pricing in a 7.9% swing for the upcoming trading [2] Options Market Activity - Options traders are showing a bullish sentiment ahead of the earnings report, with over 16,000 calls traded, approximately double the average intraday volume. The most popular contract is the June 2027 175-strike call, indicating new positions being opened [5] - Despite the bullish sentiment in calls, puts have also gained popularity, with a 10-day put/call volume ratio of 0.95, ranking higher than 81% of readings from the past year, suggesting a notable increase in put activity [6]