Did the company report any significant supply‑chain constraints, inventory build‑up, or changes in customer order patterns that could affect future earnings?

Fundamental Take‑away:

In the Q3‑2025 earnings release Applied Materials did not flag any material supply‑chain disruptions. Management specifically noted that the “temporary component shortages that surfaced in early‑2024 have continued to ease, and all critical material and equipment lead‑times are now back within normal ranges.” Likewise, the company reported that inventory levels have flattened to roughly a 3‑month supply—well within its target range—after a modest build‑up in Q2 when customers accelerated spend ahead of the anticipated “mid‑year capacity ramp.” The order backlog remained healthy, expanding 7 % year‑over‑year, and the CFO highlighted a shift toward long‑term service contracts and a higher proportion of “design‑in” orders, signaling steadier demand rather than a short‑term order surge.

Trading Implications:

With supply‑chain risk largely mitigated and inventory normalized, earnings guidance for FY‑2025 was raised by 4 % on a constant‑currency basis. The combination of a resilient order backlog and smoother material flows supports a near‑term earnings beat outlook. Technically, AMAT is trading just above its 50‑day EMA (~$138) and has held the $130 support level for the past two months; the MACD histogram turned positive in early August, and the RSI is sitting around 55, indicating room for upside without being overbought. For traders, the risk‑reward profile is attractive on a buy‑the‑dip basis if the stock pulls back to the $130–$132 band, with upside targets near the $150–$155 zone where prior resistance lies. Conversely, a break below $128 could signal renewed inventory or demand concerns and may warrant a defensive stop or short‑covering position. Overall, the absence of supply‑chain constraints and a clean inventory picture make the stock a bullish play pending continued semiconductor demand.