Latest news with #AMAT
Yahoo
3 days ago
- 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
3 days ago
- 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
3 days ago
- 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
6 days ago
- 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
Yahoo
09-07-2025
- Business
- Yahoo
AMAT Rides on AI Demand: Will Logic and DRAM Strength Last?
Applied Materials AMAT is benefiting from rising demand for AI infrastructure, with its Logic and DRAM businesses gaining traction. Since AI operations need both logic chips to process AI workloads and memory chips to store the data, global semiconductor companies are competing to be the first-to-market to deliver major architecture innovations in logic, compute memory and packaging for AI workloads. These factors are increasing the demand for fabrication, patterning and advanced packaging systems, creating opportunities for AMAT. Other technologies like next-generation gate-all-around transistors, backside power delivery, 4F2 and 3D DRAM, which are going to be critical for AI workload, will further drive AMAT's growth. AMAT's Sym3 Magnum etch system is also gaining traction because of its capability to develop high-aspect-ratio structures in 3D NAND, DRAM and logic, which are powering AI and HPC workloads. Its Sym3 Magnum etch system has generated more than $1.2 billion in revenues since its launch in February 2024. The Cold Field Emission eBeam technology, which enables manufacturers to detect defects at the nanometer scale, is also expected to gain traction as chips miniaturize to support AI. Coming to DRAM, the management has projected that revenues from its advanced DRAM customers to grow more than 40% in fiscal 2025. The growth is likely to be driven by an increase in demand for AMAT's DDR5 and high-bandwidth memory used in AI workloads. Lam Research's LRCX memory segment, accounting for both Dynamic Random Access Memory and Non-Volatile Memory divisions, is gaining traction on the back of AI. In the third quarter of fiscal 2025, LRCX's memory segment revenues jumped nearly 24% year over year to $1.31 billion, while the NVM division's sales grew approximately 21% year over year in the third quarter. Both DRAM and NAND revenues were driven by growth in chip demand to support the massive storage and input-output speeds required for AI workloads. The rising demand for AI chips is also ramping up the demand for advanced process control and process-enabling solutions provided by KLA Corporation KLAC. KLAC's advanced packaging solutions are also experiencing robust traction on the back of AI and high-performance computing. The company, in its third-quarter fiscal 2025 earnings, projected that its advanced packaging business will touch $850 million in 2025 from $500 million in 2024. Shares of Applied Materials have gained 19.9% year to date compared with the Electronics - Semiconductors industry's growth of 13.3%. Image Source: Zacks Investment Research From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 5.23X, lower than the industry's average of 8.6X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Applied Materials' fiscal 2025 and 2026 earnings implies year-over-year growth of 9.48% and 5.60%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward in the past 60 days. Image Source: Zacks Investment Research Applied Materials currently carries a Zacks Rank #3 (Hold). 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 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
