Ahead of Applied Materials Earnings, Here's What Barchart Data Says Comes Next for AMAT Stock

Applied Materials (AMAT) earnings scheduled to be released on Nov. 12 are broadly expected to offer investors fresh clues on artificial intelligence (AI) driven semiconductor spending. Wall Street expects the Nasdaq-listed firm to report $4.06 in earnings per share (EPS) for its fiscal Q4, representing an 87% increase versus the same quarter last year. 

Heading into the earnings release, Applied Materials stock is trading at nearly half its year-to-date high.

Traders Are Betting on a Post-Earnings Surge in AMAT Shares

The options market suggests investors expect volatility around Applied Materials’ earnings release, but sentiment remains modestly constructive.

Barchart’s latest data shows a put-to-call ratio of 0.83x for contracts expiring on Nov. 20, indicating call options outnumber put options. A reading below 1.00x generally suggests a greater appetite for upside exposure than downside protection. While not an outright bullish signal on its own, it signals traders are betting on a positive reaction in AMAT shares after earnings. 

Data also pegs the upper price on those options contracts at about $405, which means the company’s share price could rally 9.61% through the end of next week. 

Technicals Signal Continued Downside in Applied Materials Stock

While options traders appear optimistic, other indicators are notably more cautious. Barchart currently holds an “88% SELL” opinion on Applied Materials shares, suggesting technical momentum is not in the company’s favor heading into the earnings event.

Moreover, AMAT looks headed to form a death cross on the daily chart, a setup traders typically interpret as a sign of further potential downside ahead.  

On the flip side, however, Applied Materials is currently trading at less than 20x forward earnings, which makes it relatively cheap to own compared to its semiconductor equipment rivals, including ASML (ASML) and Lam Research (LRCX). 

What’s the Consensus Rating on Applied Materials?

Wall Street firms haven’t thrown in the towel on AMAT stock either. In fact, they view it as oversold at current levels. 

According to Barchart, the consensus rating on Applied Materials remains at “Strong Buy,” with the mean price target of about $635 indicating the company has massive upside potential over the next 12 months. 

On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.