What's Going On With Applied Materials (AMAT) Stock?

Applied Materials Inc (AMAT) shares are trading lower by 1.48% to $163.11 during Wednesday’s session following the Federal Reserve’s cautious pivot on interest rate policy, alongside broader sector challenges.

What To Know: With the Fed signaling a slower pace of rate cuts, the federal funds rate remains elevated at 4.25%-4.5%. While this signals progress toward a neutral monetary stance, it also prolongs higher borrowing costs, which may dampen capital spending. Companies reliant on large-scale investments in technology, like semiconductor equipment firms, are particularly exposed.

Adding to the strain, Micron Technology’s disappointing second-quarter guidance highlights ongoing weakness in consumer-driven markets and a slower recovery timeline for the semiconductor sector.

While Micron’s long-term prospects hinge on AI-driven growth, its near-term struggles could cascade across the supply chain, including suppliers like Applied Materials (AMAT).

With the labor market cooling and inflation still above target, investors may adopt a risk-averse stance, questioning demand stability for chip-making equipment.

Read Also: US GDP Revised To 3.1%, Jobless Claims Dip More Than Expected, Treasury Yields Hit 7-Month High

How To Buy AMAT Stock

By now you're likely curious about how to participate in the market for Applied Materials (AMAT) – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ?fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ?go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, AMAT has a 52-week high of $255.89 and a 52-week low of $148.06.