AMAT is trading 5.4% down at $413.12 as the stock is impacted by a key analyst downgrade and profit-taking following a strong post-earnings rally.
- Morgan Stanley downgraded AMAT to 'Equal Weight' from 'Overweight' on May 18, citing a shift in preference within the wafer fabrication equipment sector.
- The decline is also attributed to profit-taking after the stock's recent surge, which was fueled by record Q2 earnings and aggressive AI-related growth guidance.
- Broader technology sector weakness is adding pressure, as investors de-risk ahead of Nvidia's upcoming earnings and react to higher bond yields.