Latest news with #AMAT
Yahoo
6 days ago
- Business
- Yahoo
Applied Materials' Quarterly Earnings Preview: What You Need to Know
Santa Clara, California-based Applied Materials, Inc. (AMAT) is a provider of manufacturing equipment, services, and software to the semiconductor, display, and related industries. With a market cap of $150.1 billion, Applied Materials operates through Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets segments. The tech giant is expected to announce its third-quarter results on Thursday, Aug. 21. Ahead of the event, analysts expect AMAT to report a profit of $2.34 per share, up 10.4% from $2.12 per share reported in the year-ago quarter. Furthermore, the company has surpassed the Street's bottom-line projections in each of the past four quarters. More News from Barchart 2 Recession-Proof Dividend Stocks to Buy for the Second Half of 2025 UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip. Auto Revenue Keeps Plunging at Tesla. Should You Buy the TSLA Stock Dip or Run Far Away? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For the full fiscal 2025, analysts expect AMAT's EPS to come in at $9.47, up a notable 9.5% from $8.65 reported in fiscal 2024. In fiscal 2026, its earnings are expected to further grow 5.6% year-over-year to $10 per share. AMAT's stock prices have dropped 8.9% over the past 52 weeks, notably underperforming the S&P 500 Index's ($SPX) 17.3% surge and the Technology Select Sector SPDR Fund's (XLK) 21.1% returns during the same time frame. Despite delivering record earnings, Applied Materials' stock prices dropped 5.3% in the trading session after the release of its Q2 results on May 15. The company's topline for the quarter increased 6.8% year-over-year to $7.1 billion, falling short of the Street expectations by a small margin, which increased investor skepticism, which was already heightened due to concerns over the impact of potential tariffs on the semiconductor industry. Nonetheless, the company's overall performance remained more than impressive, its adjusted EPS increased 14.4% year-over-year to $2.39, beating the consensus estimates by 3.5%. Further, its operating cash flows surged 12.9% year-over-year to $1.6 billion. The consensus view on AMAT stock is optimistic, with a consensus 'Moderate Buy' rating overall. Of the 34 analysts covering the stock, opinions include 22 'Strong Buys,' three 'Moderate Buys,' and nine 'Holds.' Its mean price target of $205.68 suggests a 9.3% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
16-07-2025
- Business
- Yahoo
Applied Materials Soars 14% in a Month: Time to Buy or Hold the Stock?
Applied Materials AMAT shares have climbed 14.4% in a month, outperforming the Zacks Electronics - Semiconductors industry's return of 6.2%. This outperformance raises the question: Should investors accumulate AMAT shares or book profits and exit the investment? Applied Materials One Month Price Performance Chart Image Source: Zacks Investment Research AMAT Benefits From Growing Adoption of Its Products Applied Materials is experiencing strong traction in its etching, deposition, metrology and inspection tools. AMAT's Sym3 Magnum etch system, Cold Field Emission eBeam technology, gate-all-around, backside power delivery, and 3D DRAM technology nodes are gaining traction as they play crucial roles in the manufacturing and inspection of high-performance processing and memory chips used for AI and HPC workloads. AMAT's Sym3 Magnum etch system has yielded more than $1.2 billion in revenues since its launch in February 2024. Moreover, in the second quarter of fiscal 2025, AMAT's management anticipated AMAT's revenues from DRAM customers to grow more than 40% in fiscal 2025. Earlier, Applied Materials reported that its revenues from advanced semiconductor nodes crossed $2.5 billion in 2024, and it expected the figure to double in fiscal 2025 as customers' adoption of its GAA and backside power delivery solutions grows. Applied Materials stands to gain from the rising demand for advanced chips required to power AI-centric data centers. The company's deep expertise in logic and solid position in DRAM patterning have aided it in maintaining a stronghold in the semiconductor space. Its patterning systems and technologies, which are designed to address the shrinking pattern dimension challenges and the growing complexity in vertical stacking, can play a crucial role in high-performance chip development for AI. Due to the favorable mix of products and traction in high-margin solutions, Applied Materials' gross margin has been experiencing positive momentum for the past four quarters and came in at 49.2% in the second quarter of fiscal 2025, which is also the highest gross margin since the fourth quarter of fiscal 2000. Broad Portfolio Gives AMAT a Competitive Edge The semiconductor equipment market in which AMAT operates has other larger players, including Lam Research LRCX, ASML Holding ASML and KLA Corporation KLAC. However, AMAT differentiates from its competitors by providing comprehensive deposition, etch, metrology, and packaging solutions, whereas its competitors specialize only in one vertical or the other. AMAT also commands a strong integration of materials science and fabrication; the others don't. For instance, ASML Holding specializes in the photolithography and advanced manufacturing equipment segment. KLA Corporation is a dominant competitor in the wafer inspection space and Lam Research has a strong atomic layer deposition portfolio. AMAT stands out because of its full-stack portfolio, strength in materials engineering, and ability to co-optimize across fabrication steps. This is the reason why, despite having competition from Lam Research, KLA Corporation and ASML Holdings, Applied Materials is able to keep its margins intact as it's not just a tools vendor. Applied Materials offers end-to-end solutions that improve chip yield, power, performance, and cost. The Zacks Consensus Estimate for AMAT's earnings per share is pegged at $9.47, indicating year-over-year growth of 9.5%. Image Source: Zacks Investment Research Applied Materials is trading at a 12-month forward P/S ratio of 5.34, significantly below the industry average of 6.64. Given its dominance in semiconductor equipment and AI-driven chip manufacturing, this valuation discount suggests strong upside potential over the long term. AMAT Forward 12 Month (P/S) Valuation Chart Image Source: Zacks Investment Research Conclusion: Buy AMAT Stock Now Applied Materials remains a key player in semiconductor manufacturing, with a strong position in AI-driven chip development, advanced packaging and next-generation process technology. For investors, investing in AMAT stock remains the best approach. Currently, Applied Materials carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report ASML Holding N.V. (ASML) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
Globe and Mail
16-07-2025
- Business
- Globe and Mail
Applied Materials Soars 14% in a Month: Time to Buy or Hold the Stock?
Applied Materials AMAT shares have climbed 14.4% in a month, outperforming the Zacks Electronics - Semiconductors industry's return of 6.2%. This outperformance raises the question: Should investors accumulate AMAT shares or book profits and exit the investment? Applied Materials One Month Price Performance Chart AMAT Benefits From Growing Adoption of Its Products Applied Materials is experiencing strong traction in its etching, deposition, metrology and inspection tools. AMAT's Sym3 Magnum etch system, Cold Field Emission eBeam technology, gate-all-around, backside power delivery, and 3D DRAM technology nodes are gaining traction as they play crucial roles in the manufacturing and inspection of high-performance processing and memory chips used for AI and HPC workloads. AMAT's Sym3 Magnum etch system has yielded more than $1.2 billion in revenues since its launch in February 2024. Moreover, in the second quarter of fiscal 2025, AMAT's management anticipated AMAT's revenues from DRAM customers to grow more than 40% in fiscal 2025. Earlier, Applied Materials reported that its revenues from advanced semiconductor nodes crossed $2.5 billion in 2024, and it expected the figure to double in fiscal 2025 as customers' adoption of its GAA and backside power delivery solutions grows. Applied Materials stands to gain from the rising demand for advanced chips required to power AI-centric data centers. The company's deep expertise in logic and solid position in DRAM patterning have aided it in maintaining a stronghold in the semiconductor space. Its patterning systems and technologies, which are designed to address the shrinking pattern dimension challenges and the growing complexity in vertical stacking, can play a crucial role in high-performance chip development for AI. Due to the favorable mix of products and traction in high-margin solutions, Applied Materials' gross margin has been experiencing positive momentum for the past four quarters and came in at 49.2% in the second quarter of fiscal 2025, which is also the highest gross margin since the fourth quarter of fiscal 2000. Broad Portfolio Gives AMAT a Competitive Edge The semiconductor equipment market in which AMAT operates has other larger players, including Lam Research LRCX, ASML Holding ASML and KLA Corporation KLAC. However, AMAT differentiates from its competitors by providing comprehensive deposition, etch, metrology, and packaging solutions, whereas its competitors specialize only in one vertical or the other. AMAT also commands a strong integration of materials science and fabrication; the others don't. For instance, ASML Holding specializes in the photolithography and advanced manufacturing equipment segment. KLA Corporation is a dominant competitor in the wafer inspection space and Lam Research has a strong atomic layer deposition portfolio. AMAT stands out because of its full-stack portfolio, strength in materials engineering, and ability to co-optimize across fabrication steps. This is the reason why, despite having competition from Lam Research, KLA Corporation and ASML Holdings, Applied Materials is able to keep its margins intact as it's not just a tools vendor. Applied Materials offers end-to-end solutions that improve chip yield, power, performance, and cost. The Zacks Consensus Estimate for AMAT's earnings per share is pegged at $9.47, indicating year-over-year growth of 9.5%. Image Source: Zacks Investment Research Applied Materials is trading at a 12-month forward P/S ratio of 5.34, significantly below the industry average of 6.64. Given its dominance in semiconductor equipment and AI-driven chip manufacturing, this valuation discount suggests strong upside potential over the long term. AMAT Forward 12 Month (P/S) Valuation Chart Image Source: Zacks Investment Research Conclusion: Buy AMAT Stock Now Applied Materials remains a key player in semiconductor manufacturing, with a strong position in AI-driven chip development, advanced packaging and next-generation process technology. For investors, investing in AMAT stock remains the best approach. Currently, Applied Materials carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC): Free Stock Analysis Report ASML Holding N.V. (ASML): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Yahoo
16-07-2025
- Business
- Yahoo
Applied Materials (AMAT) Increases Despite Market Slip: Here's What You Need to Know
In the latest trading session, Applied Materials (AMAT) closed at $199.29, marking a +1.11% move from the previous day. This move outpaced the S&P 500's daily loss of 0.4%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%. The maker of chipmaking equipment's stock has climbed by 11.64% in the past month, exceeding the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 4.97%. The upcoming earnings release of Applied Materials will be of great interest to investors. In that report, analysts expect Applied Materials to post earnings of $2.34 per share. This would mark year-over-year growth of 10.38%. In the meantime, our current consensus estimate forecasts the revenue to be $7.2 billion, indicating a 6.23% growth compared to the corresponding quarter of the prior year. AMAT's full-year Zacks Consensus Estimates are calling for earnings of $9.47 per share and revenue of $28.82 billion. These results would represent year-over-year changes of +9.48% and +6.04%, respectively. It is also important to note the recent changes to analyst estimates for Applied Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Applied Materials is currently sporting a Zacks Rank of #3 (Hold). Digging into valuation, Applied Materials currently has a Forward P/E ratio of 20.81. This denotes a discount relative to the industry average Forward P/E of 27.16. Also, we should mention that AMAT has a PEG ratio of 2.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.6 as of yesterday's close. The Electronics - Semiconductors industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
13-07-2025
- Business
- Yahoo
Goldman Sachs Begins Coverage on Applied Materials (AMAT) Stock With Buy Rating
Applied Materials, Inc. (NASDAQ:AMAT) is one of the Most Promising AI Stocks to Buy Now. Goldman Sachs initiated coverage on the company's stock with a 'Buy' rating and a price objective of $225.00. As per the firm, Applied Materials, Inc. (NASDAQ:AMAT) remains well-positioned to benefit from the semiconductor industry's ongoing pivot towards 3D architectures, which need more intensive etching and deposition processes. Furthermore, the firm noted that the company has established a portfolio of critical equipment tools. A technician in a clean room assembling a semiconductor chip using a microscope. Even though the firm acknowledges that competition from Chinese manufacturers is intense in the broader semiconductor equipment space, it believes that the market share gains of these competitors will mainly be limited to serving the local Chinese demand. As per Applied Materials, Inc. (NASDAQ:AMAT), high-performance, energy-efficient AI computing is the dominant driver of semiconductor innovation, while it remains focused on accelerating the industry's roadmap. Amidst a highly dynamic macro environment, Applied Materials, Inc. (NASDAQ:AMAT)'s broad capabilities and connected product portfolio continue to drive healthy results in 2025. Applied Materials, Inc. (NASDAQ:AMAT) delivered strong Q2 2025 results, with healthy YoY revenue growth, gross margin expansion, and record EPS. These results were aided by increased leading-edge foundry-logic investments, considering the strong end-market demand for AI-enabling semiconductors. Notably, the large-scale deployment of AI would need major advances in computing performance and energy efficiency, which can only be achieved by disruptive innovation throughout the technology stack. Applied Materials, Inc. (NASDAQ:AMAT) is a critical enabler of AI by offering the advanced semiconductor manufacturing equipment required to produce AI chips as well as high-performance computing hardware. Vltava Fund, an investment management company, released its Q4 2024 investor letter. Here is what the fund said: 'In the quarter just ended, we added to the portfolio two new companies from the technology sector: Applied Materials, Inc. (NASDAQ:AMAT) and Lam Research. Both are in the same industry as is another of our investments that we have held for some time, KLA Corporation. This industry is termed semiconductor devices and materials. One chapter in Hidden Investment Treasures is devoted to investing in technology companies and, among other things, the controversy over what really constitutes a technology company. As investors, we try to view technology companies not according to the industry into which they are formally classified but by whether the technologies and technological processes used in the production of their products and services are an essential element in value creation or if they are a source of long-term, sustainable competitive advantage. Among the companies that are formally categorized as technology-based and fall into either the Information Technology or the Communications Services sector, we find some that can be said to be just that but also others for which this classification is at least debatable. Similarly, among companies that do not formally belong to these two sectors, we find many that clearly are built to a large extent on technology and base their market positions and competitiveness on it. In the cases of Applied Materials and Lam Research, there can be no doubt that these are technology companies not only as a formality but also in fact. 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: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
