News · Applied Materials, Inc. (AMAT) · Technology

Applied Materials falls 6.7% after AI-linked WFE strategy and $5 billion EPIC plan

Session of October 13, 2026 · Published October 14, 2026 · 4 min read

What happened

Applied Materials (AMAT) fell 6.7% on October 13, 2026, after presentations linking expanded AI demand to its wafer fab equipment business and a planned $5 billion Equipment and Process Innovation and Commercialization (EPIC) Center. The stock traded at a closing price of $464.24 and volume was 1.8 times its 20-day average as it opened 2.4% below the previous close. The S&P 500 was unchanged on the day while the Technology sector median fell 0.3%, making the move 6.4 percentage points worse than the sector median.

Closing price over the last 30 trading sessions. On October 13, 2026, AMAT closed at $464.24, down 6.7% on the day and 5.1% higher than 30 sessions earlier.

How big was the move

The decline was 1.7 times a typical daily move for this stock and came after company announcements, so it was a large, mostly company-specific move. The stock fell 12.5% over the last five sessions, while the S&P 500 fell 0.2% over the same period. The stock has a beta of 1.54, indicating it tends to move more than the market. In the past five years the stock had 24 sessions with a decline of at least 6.7%; twenty trading days later the median result was a gain of 0.5%, and 13 of 24 were higher.

Each bar is one day's price change; the outlined bar is October 13, 2026. A typical daily move over the past year was 3.7%, so the latest move equals 1.8 times that. Moves outside the dashed lines (about 7.5%) are unusual.

The technical picture

The stock traded 5.2% below its 20-day moving average and 5.0% below its 50-day moving average, while remaining 6.3% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had spent 272 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 41, in a neutral range, and the stock sat 37.2% below the 52-week high.

Closing price over the past year. AMAT ends the period 35.8% below its 52-week high, below its 50-day average ($488.66) and above its 200-day average ($436.52).

Over one month the stock rose 9.4% but fell 19.9% over three months and rose 121.1% over one year. One year versus the S&P 500, the stock was 102.0 percentage points ahead. Volatility was 62% annualized over 60 days, higher than 94% of its own readings over five years, underscoring larger-than-normal price swings.

Fundamentals and valuation

For the four quarters through July 26, 2026, the company reported revenue of $30.84 billion, which grew 7.8% from a year earlier. Diluted earnings per share were $11.60, which rose 38.4% from a year earlier, and gross margin was 49.4% versus 48.5% a year earlier. Operating margin was 30.5% compared with 30.1% a year earlier, and free-cash-flow margin was 18.2%.

Quarterly revenue by period end. The latest quarter brought $9.1B, 24.8% more than the same quarter a year earlier.

Return on invested capital stood at 23.5% and the balance sheet showed net debt of 0.0 times EBITDA. Share count over one year decreased by 1.4%. The stock traded at 40.0 times trailing earnings and 36.2 times expected earnings, with a free-cash-flow yield of 1.4%. Its price-to-earnings reading was higher than 90% of its own readings over the past five years; the five-year median was 20.0 times earnings.

The valuation contrasts with the company’s strong profitability metrics. High multiples suggest investors are paying for growth and margin durability, while the modest free-cash-flow yield points to limited near-term cash returns to holders relative to price.

Earnings and analyst expectations

Applied Materials last reported on August 13, 2026, with earnings per share of $3.50 against $3.40 expected, 2.9% above estimates. The firm has beaten estimates for 14 consecutive quarters and averaged 5.0% above estimates over the last four reports. Typical two-day reactions after recent reports were modestly negative, with the stock falling 0.7%.

Diluted earnings per share by quarter. The latest quarter shows $3.17, against $2.21 in the same quarter a year earlier.

Analysts covering the stock numbered 55 and the consensus rating was Buy, with 78% of ratings at Buy or higher. The consensus price target was $662.87, 42.8% above the closing price on October 13, 2026. The next report was scheduled for November 12, 2026.

PromtFinance scores rank the company Strong on Revisions at 86, Positive on Quality at 70 and Momentum at 67, while Value scored 33, indicating a weaker value profile relative to peers.

What to watch

October 13, 2026: SEMICON West presentations linking expanded AI demand to WFE and expectations of gaining more than two percentage points of WFE market share by 2030, reported by GlobeNewsWire and Seeking Alpha (and 2 other outlets).
October 13, 2026: Announcement of the Equipment and Process Innovation and Commercialization (EPIC) Center, a planned $5 billion investment in Silicon Valley, reported by GlobeNewsWire.
August 13, 2026: Last earnings report with EPS of $3.50 against $3.40 expected, 2.9% above estimates.
In the past five years the stock had 24 sessions with a decline of at least 6.7%; twenty trading days later the median result was a gain of 0.5%, and 13 of 24 were higher.
November 12, 2026: Next earnings report date.

Full AMAT analysis: scores, chart and financials →