In a recent appearance, CNBC’s Jim Cramer expressed concern over Applied Materials (AMAT) after the semiconductor equipment leader saw its stock dip despite strong sector momentum. The comment highlights growing investor caution in the tech supply chain as AI-driven demand begins to plateau.
- AMAT stock declined 15.6% from its 52-week high to $158.37 by March 3, 2026
- Q4 2025 revenue rose 12% YoY, with bookings up 22% YoY
- AMAT's order backlog grew 5% QoQ, its slowest pace since Q2 2024
- SOXX ETF down 3.1% over five days, signaling sector-wide caution
- VIX reached 18.4 on March 3, 2026, indicating rising market volatility
- Major chipmakers paused equipment orders for advanced nodes in early 2026
Applied Materials (AMAT) has come under scrutiny from high-profile market commentator Jim Cramer, who said during a live broadcast, "It got away from us," referring to the company’s recent stock performance. The statement followed a 4.2% decline in AMAT’s share price over the past five trading sessions, erasing gains made earlier in the year despite a 12% surge in Q4 revenue. The stock now trades at $158.37, down 15.6% from its 52-week high reached in January 2026. The semiconductor equipment sector has experienced a shift in sentiment, with the iShares Semiconductor ETF (SOXX) down 3.1% over the same period. While AMAT reported a 22% year-over-year increase in bookings in Q4 2025, guided by strong demand from AI chipmakers, investor focus has turned to signs of inventory normalization at major foundries. Analysts note that the company’s order backlog, while still above $14 billion, has grown at a slower pace—just 5% quarter-over-quarter—marking the weakest growth since Q2 2024. Market indicators suggest broader caution: the CBOE Volatility Index (VIX) rose to 18.4 on March 3, 2026, reflecting increased risk aversion after a series of earnings revisions across the tech sector. The crude oil futures contract (CL=F) also saw a 2.3% spike, partly due to geopolitical tensions in the Middle East, which may impact capital allocation in cyclical industries like semiconductors. Retail investors and fund managers monitoring AMAT are now reassessing the pace of capital expenditure in the semiconductor industry. With major players like TSMC and Samsung pausing equipment orders for certain advanced nodes, the momentum that once fueled AMAT’s 2025 rally appears to be cooling.