Applied Materials (AMAT) reports earnings after the close on Thursday. Goerge Tsilis says it will face one key headwind: China. He notes Applied Materials gets 25% of its total sales from the country, meaning tariffs will serve as a headwind against future profits. On the bullish side, George notes the company's DRAM capabilities as a plus, backed by strong A.I. support seen in Nvidia (NVDA), AMD Inc. (AMD), and similar companies. Prosper Trading Academy's Scott Bauer offers an example options trade for Applied Materials.