Applied Materials (NASDAQ: AMAT) is a leading provider of manufacturing equipment, services, and software for the semiconductor, display, and related industries. With a presence in key segments such as Semiconductor Systems, Applied Global Services, and Display & Adjacent Markets, the company has positioned itself as a major player in the tech industry.
Key Highlights:
- Strength in Applied Global Services: Applied Materials is seeing positive results in its Applied Global Services segment, which is contributing to its overall growth.
- Dominance in Semiconductor Equipment Sales: The company stands out in the semiconductor equipment sales territory, showcasing its strong market position.
- Growth in Semiconductor Business: AMAT’s semiconductor business is expanding, with significant design wins and improving market dynamics.
- Concerns: However, there is a concern regarding weakening momentum in regions like Taiwan and Europe.
Technical Analysis Perspective:
- Chart Patterns: AMAT has been moving higher in a rising channel pattern since late 2022 on weekly and monthly charts.
- Historical Data: Looking at historical data, there have been patterns of channel movements followed by corrections, indicating potential future price movements.
- Price Targets: Analysts suggest a potential minimum 60% decline from recent peaks, with a target range of 145 to 142.
- Upside Potential: A sustained move above certain price levels could signal a reversal of the downside trend.
AMAT Monthly Chart
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AMAT Seasonality Chart
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Conclusion:
There appears to be a discrepancy between technical charts and historical seasonality patterns for AMAT. A break below 170 post-earnings could indicate a downward move, while a range trade between 215 to 170 might be the current scenario.
About the Author:
Ali Merchant is a seasoned financial market professional with a background in Technical Analysis, Treasury & Capital Markets, Trading, and more. Holding a CMT charter, he is actively involved in various financial associations and has a wealth of experience in the industry.For more financial market insights and training, follow TwT Learnings on social media.
By analyzing Applied Materials’ performance across different segments and considering technical and historical data, investors and stakeholders can make informed decisions about their investments. The key highlights and technical analysis provide valuable insights into the company’s current standing and potential future movements. Understanding the trends and patterns in the market can help individuals navigate the financial landscape and optimize their financial strategies for long-term success.