Since the AI trade has gained momentum and has shaken the investor community with perhaps one of the fastest bouts of enormous wealth creation, it must be accepted that some corners of the market are behaving like spoiled brats. Why do I say so? First, merely beating Street estimates is not enough. A company has to obliterate it. Second, guidance should be above expectations as well.
However, semiconductor equipment maker Applied Materials (AMAT) fulfilled those loft expectations, too. Yet, its shares ended 5.12% lower in Friday's trading session following its Q3 2026 results. This time, the expectations were deemed to be high, and the result was a nosedive in AMAT stock.
