Last 6 months, an AI trading robot produced a 20.83% increase in AMAT's earnings.
This AI trading robot, available at Swing Trader, Popular Stocks: Long Bias Strategy (TA&FA), was a top performer in our robot factory, generated 20.83% for AMAT over the past 6 months.
Over the last half-year, an artificial intelligence (AI) trading robot has sparked a notable surge in the earnings of Applied Materials Inc. (AMAT), producing an impressive 20.83% increase. This remarkable yield has shined a light on the growing potential of AI in financial markets. The following piece aims to dissect the numbers, delve into the AI trading strategies employed, and explore the impacts and implications of this technological marvel on AMAT’s performance.
An Upward Trend Backed by Solid Figures
As of May 17, 2023, the 10-day moving average for AMAT made a bullish cross above the 50-day moving average. This key technical indicator, which shows the average price over a certain period of time, signals a shifting trend in the asset's price. The upward cross typically reflects a positive shift in momentum and is often considered a buy signal.
Historically, when the 10-day moving average has crossed above the 50-day, AMAT's stock price has continued to climb in 13 out of 16 past instances. This suggests an 81% probability that the stock will maintain its upward trend. In the context of these numbers, the AI trading robot has helped AMAT tap into this likelihood, boosting its earnings considerably.
How AI Drove This Financial Feat
In the financial markets, AI trading robots are programmed to make trades based on specific algorithms that use historical and real-time data. They are designed to identify patterns and exploit market inefficiencies. In the case of AMAT, the AI robot capitalized on the upward trend, effectively making profitable trades based on the bullish signal given by the 10-day moving average crossing above the 50-day.
The robot presumably used advanced predictive models to recognize this pattern, considering the fact that the odds of an upward trend were 81% when such a cross occurred. It would have then executed trades in a timely manner, maximizing the profit potential of each market movement.
The superior data processing and analysis capabilities of AI have thus enabled it to make more informed and calculated trades than traditional human traders, thereby leading to the 20.83% increase in AMAT’s earnings over the last six months.
Implications for the Future of Trading
The success of the AI trading robot with AMAT's stock emphasizes the vast potential of AI in reshaping the world of trading. The ability of these AI-powered tools to swiftly analyze vast amounts of data and identify profitable patterns can lead to more consistent returns, as evidenced by the 20.83% earnings increase.
However, while these tools provide a competitive edge, they also raise questions about market volatility and the fairness of trading practices. As AI trading becomes more prevalent, it will be crucial to develop regulatory frameworks to prevent potential market manipulation and ensure a level playing field for all market participants.
The last six months have offered a promising preview of the transformative impact of AI trading robots on financial markets, as exemplified by the 20.83% increase in AMAT's earnings. Despite the ongoing challenges, the amalgamation of AI and trading holds significant potential to revolutionize the investment landscape.
AMAT sees MACD Histogram just turned negative
AMAT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 11, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 45 instances where the indicator turned negative. In of the 45 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 12, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on AMAT as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
AMAT moved below its 50-day moving average on September 14, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMAT crossed bearishly below the 50-day moving average on September 19, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.593) is normal, around the industry mean (7.984). P/E Ratio (18.083) is within average values for comparable stocks, (53.953). AMAT's Projected Growth (PEG Ratio) (4.494) is slightly higher than the industry average of (2.360). Dividend Yield (0.009) settles around the average of (0.022) among similar stocks. P/S Ratio (4.382) is also within normal values, averaging (72.684).
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of equipment and software for the semiconductor industries
Industry Semiconductors
AMAT and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMAT has been closely correlated with LRCX. These tickers have moved in lockstep 92% of the time. This A.I.-generated data suggests there is a high statistical probability that if AMAT jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To AMAT | 1D Price Change % | ||
|---|---|---|---|---|
| AMAT | 100% | -1.30% | ||
| LRCX - AMAT | 92% Closely correlated | -1.37% | ||
| KLAC - AMAT | 90% Closely correlated | -1.20% | ||
| ASML - AMAT | 88% Closely correlated | -1.32% | ||
| TER - AMAT | 85% Closely correlated | -0.40% | ||
| ONTO - AMAT | 83% Closely correlated | -0.58% | ||
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