Here's Why Morgan Stanley Maintained a Hold Rating on Applied Materials (AMAT)
Shane Brett noted Applied Materials, Inc. (NASDAQ:AMAT)'s DRAM revenue is expected to drop 12% in fiscal 2026. On the other hand, some analysts remain optimistic about the company driven by new technologies like Gate-All-Around (GAA) transistors and backside power delivery. The outlook regarding the company's valuation also presented variation, with some analysts believing the company's semiconductor equipment business (SPE) deserves higher trading multiple due to its growth prospects. On the other hand, some think current valuations are considerably elevated. Due to this mixed outlook around Applied Materials, Inc. (NASDAQ:AMAT), Brett maintained a Hold rating on the stock.
A technician in a clean room assembling a semiconductor chip using a microscope.
During the fiscal second quarter of 2025, Applied Materials, Inc. (NASDAQ:AMAT) reported a revenue of $7.1 billion, reflecting a 7% increase year-over-year. The growth was driven by solid performance across the board. Notably, the gross margins improved 170 basis points to 49.2% reflecting the highest quarterly margins since FQ4 2000. Looking ahead, management anticipates slight year-over-year growth with revenue between $7.15 billion and $7.25 billion.
While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
Cracker Barrel unveils a new logo as part of wider rebrand efforts, sparking ire among some online
NEW YORK (AP) — Cracker Barrel is marching forward with an ongoing makeover. And to the dismay of some fans, the chain's new logo now ditches the barrel itself. Or rather, the drawing many have associated with Cracker Barrel over the years. The man leaning on that barrel is also gone, as are the words 'Old Country Store.' Instead, the new emblem features a simpler design with just 'Cracker Barrel' written on a gold background, which also has a semi-updated shape. 'Anchored in Cracker Barrel's signature gold and brown tones, the updated visuals will appear across menus and marketing collateral," the Tennessee-based company wrote in a Tuesday announcement. Cracker Barrel added that its logo is "now rooted even more closely to the iconic barrel shape and word mark that started it all.' According to Cracker Barrel, this latest look marks the brand's 'fifth evolution' of its logo to date. It was unveiled as part of a campaign from the company called 'All the More,' which also advertises some new fall menu items. Cracker Barrel has been working on a wider rebrand for some time. Beyond a new logo, that's included remodeling its country-style restaurants and retail stores. The company began ramping up this overhaul last year by swapping out older, more antique-filled designs with lighter paint and modern furniture. Founded in 1969, Cracker Barrel operates nearly 660 locations across the U.S. today. Those attached to the chain's previous look have been quick to express ire about both the new logo and restaurant remodels online. 'Our values haven't changed, and the heart and soul of Cracker Barrel haven't changed,' Cracker Barrel said in a statement sent to The Associated Press on Thursday. The company added that the man on its former logo, known as Uncle Herschel, 'remains front and center in our restaurants and on our menu," as he represents 'The Herschel Way,' which is 'the foundation of how our 70,000 plus employees provide the country hospitality for which we are known.' Shares of Cracker Barrel Old Country Store were down 8% Thursday afternoon. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
US SEC names Margaret Ryan as director of enforcement division
(Reuters) -The U.S. Securities and Exchange Commission on Thursday named Margaret Ryan as the director of the agency's enforcement division. Acting enforcement director Sam Waldon will return to his previous role as chief counsel for the division, the SEC said in a statement.
Yahoo
26 minutes ago
- Yahoo
Google to provide Gemini AI tools to US government
Google will provide its Gemini artificial intelligence tools to US federal agencies practically free, the government announced Thursday. A suite of AI and cloud computing services called "Gemini for Government" from Google is intended to speed the adoption of the technology across the US government, the General Services Administration (GSA) said in a joint statement. "Gemini for Government gives federal agencies access to our full stack approach to AI innovation," added Google chief executive Sundar Pichai. "So they can deliver on their important missions." AI tools being provided include generation of video, images, or ideas as well as digital "agents" capable of independently tending to complex tasks. US agencies will pay a scant fee of less than a dollar for the AI tools, building on a previous agreement that saw Google Workspace software provided to the government at a major price discount, according to the GSA. "Federal agencies can now significantly transform their operations by using the tools in Gemini for Government," said GSA acting administrator Michael Rigas. The deal comes just weeks after Google rival OpenAI said it was letting the US government use a version of ChatGPT designed for businesses for a year for just $1. "By giving government employees access to powerful, secure AI tools, we can help them solve problems for more people, faster," OpenAI said in a blog post announcing the alliance. Earlier this year, the US Department of Defense awarded OpenAI a $200 million contract to put generative AI to work for the military. OpenAI planned to show how cutting-edge AI can improve administrative operations, such as how service members get health care, and also has cyber defense applications, the startup said in a post. gc/md
