Why Did Applied Materials Stock Fall?
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Applied Materials (AMAT) stock fell 13.6% on Thursday, November 5, 2026, while the S&P 500 lost 4.4%. The company released no announcement, earnings report or filing around the move, which occurred on a day the Nasdaq Composite dropped 5.5%. What does Applied Materials’ business depend on, and did the rest of its group fall too?
Applied Materials Sells Equipment For AI Chip Capacity
Applied Materials produces the equipment chipmakers use to build chips, and management has tied its recent growth to the build-out of AI computing. For fiscal Q3 2026, the quarter ended July 26, revenue was $9.12 billion, up 24.8% from a year earlier. During the company’s August 13 call, management said the rapid global build-out of AI infrastructure gives the company a strong foundation for revenue and profit growth over several years.
That growth depends on customers spending on new factories. On the same call, management said clean room space governs its growth over the longer term, and that customers continue to add clean room projects. Management also pointed to strong capital spending by cloud service providers.
Did Applied Materials Fall With Other Tech Stocks?
Yes, and by more than the sector. During the same session, the SPDR fund that tracks the technology sector (XLK) fell 8.0%. Every company on its Trefis peer list declined as well, including Microchip Technology, down 13.9%, and Texas Instruments, down 10.7%. Applied Materials moved with its group that day, rather than on news of its own. The tech sell-off came as investors reassessed the AI boom and data center spending after Democrats’ sweeping midterm election wins.
Where Does Applied Materials Stock Stand Now?
Declines of this size are rare for the stock. Over the prior 365 days, no single session produced a drop as large, and the only move of at least this size in either direction was a 15.0% gain on July 30, 2026.
The shares had already been falling. Including this drop, the stock lost 38.7% from October 7 to November 5, against a 5.7% decline for the S&P 500. This retreat left the shares at a close of $319.25, well below the 52-week closing high of $723.00 set on June 30, 2026. Over twelve months, the stock returned 39.5%, against 9.9% for the S&P 500. Its lowest close during that year was $220.23 on November 20, 2025.
Based on its November 5 close, Applied Materials traded at 8.2 times its trailing twelve-month sales, against 3.2 times for the S&P 500.
The company is expected to report its fiscal fourth-quarter 2026 results on November 12, 2026. In that report, revenue is the measure to watch, against management’s guide of $10.25 billion plus or minus $500 million.
Still Holding Applied Materials After The Drop?
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