Applied Materials: Not a Long-Term Buy but a Swing Trade Opportunity

2 months ago

Jerry Romine

"What I'm doing right now is this a buying or selling window. This isn't a long-term buy for me. Margins are slipping. Competitive pressure is rising. And the China revenue cliff is still being priced in. That breaks my core criteria for long-term conviction. But I'm watching it for a swing trade. If I see a clean setup with tight risk control, I'll take it because good businesses can still be tradable, even when they're not compounding machines."

The speaker highlights that despite Applied Materials' leadership and technology, there are significant warning signs such as compressing margins, fierce competitive pressures, and a steep decline in China revenue. He clearly states that, as a long-term buy, AMAT no longer meets his criteria, though he remains open to a short-term swing trade if a clean, low-risk setup emerges.

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