Applied Materials falls as investor day fallout continues

Applied Materials Inc shares dropped 6.7% in morning trading on Thursday to $381.53, continuing a multi-week decline that began after the company's October 13 investor day.

The stock touched a session low of $380.92 as selling pressure intensified amid a broader decline in the technology sector.

CEO Gary Dickerson declined to provide specific wafer fab equipment forecasts during the investor day, telling attendees the company would not give a WFE outlook. The absence of near-term guidance triggered a sell-off that has persisted through recent sessions.

Needham reduced its price target on Applied Materials to $580 from $740 on October 16, citing valuation concerns following the stock's earlier rally tied to artificial intelligence demand.

Morgan Stanley maintained a Hold rating and $563 price target on Tuesday after attending the company's investor breakfast and EPIC R&D center opening. The firm noted stronger-than-expected performance in the DRAM equipment market and increased confidence in the company's long-term strategy.

Exchange-traded funds recorded approximately $58.8 million in net selling of Applied Materials shares in mid-October. Concerns about the stock's valuation relative to its AI-driven growth prospects have weighed on investor appetite.

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