Applied Materials (AMAT) shares plunged 5.09% intraday on Wednesday, deepening a multi-session selloff as the semiconductor equipment giant remains under heavy pressure from a confluence of bearish catalysts. The Philadelphia Semiconductor Index has now fallen over 20% from its June all-time high, signaling a broad-based retreat in the chip sector.

The primary driver behind the decline is the ongoing impact of Michael Burry's disclosed short position. The famed "Big Short" investor has targeted Applied Materials and the broader AI-driven semiconductor space, projecting an approximately 30% correction. This bearish stance has been compounded by growing skepticism about the return on massive AI infrastructure spending and increasing fears of competition from Chinese lithography equipment.

Despite the selloff, Wall Street analysts remain constructive on the longer-term outlook. Multiple institutions, including HSBC, Citi, and UBS, recently raised their price targets on Applied Materials to a range of $683–$705. The company is scheduled to report fiscal third-quarter results on August 13, with consensus earnings per share expected at $3.36, which could serve as a potential catalyst for a shift in sentiment.