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NASDAQ:AMAT

Applied Materials (AMAT) Stock Price, News & Analysis

$246.29
+3.70 (+1.53%)
(As of 07/8/2024 ET)
Today's Range
$243.11
$247.17
50-Day Range
$193.99
$247.83
52-Week Range
$129.21
$249.42
Volume
3.78 million shs
Average Volume
5.71 million shs
Market Capitalization
$203.92 billion
P/E Ratio
28.31
Dividend Yield
0.65%
Price Target
$221.84

Applied Materials MarketRank™ Stock Analysis

Analyst Rating
Moderate Buy
2.76 Rating Score
Upside/​Downside
9.9% Downside
$221.84 Price Target
Short Interest
Healthy
1.92% of Float Sold Short
Dividend Strength
Weak
Based on Four Factors
Sustainability
-1.99
Upright™ Environmental Score
News Sentiment
0.90mentions of Applied Materials in the last 14 days
Based on 16 Articles This Week
Insider Trading
Selling Shares
$21.38 M Sold Last Quarter
Proj. Earnings Growth
13.00%
From $8.31 to $9.39 Per Share

Overall MarketRank

New Rank-Based ScoringMarketRank is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies.

4.11 out of 5 stars

Computer And Technology Sector

118th out of 568 stocks

Semiconductors & Related Devices Industry

25th out of 87 stocks

AMAT stock logo

About Applied Materials Stock (NASDAQ:AMAT)

Applied Materials, Inc. is a global leader in providing innovative materials engineering solutions to the semiconductor, display, and related industries. Founded in 1967, the company's mission is to create customer value by developing technologies that enable them to build transformative products and drive their growth. With a commitment to sustainability and social responsibility, Applied Materials is dedicated to positively impacting the environment, communities, and society.

Applied Materials offers a wide range of products and services that enable customers to manufacture advanced semiconductors, flat panel displays, and solar photovoltaic cells. The company's product portfolio includes chemical and physical vapor deposition equipment, etch, cleaning, and metrology. Applied Materials also provides advanced software, automation, and services to optimize the performance and efficiency of its equipment and enable customers to reduce their time-to-market and manufacturing costs.

Applied Materials serves diverse semiconductor, display, and solar customers, including leading semiconductor manufacturers, foundries, memory and logic device makers, and display panel manufacturers. Some of the company's key customers include Samsung, Intel, TSMC, and Micron.

Headquartered in Santa Clara, California, Applied Materials has a global presence with operations in over 20 countries. The company has a strong track record of innovation and has been recognized for its achievements and contributions to the industry. In 2020, Applied Materials was named to the Dow Jones Sustainability World Index for the 16th consecutive year, reflecting its commitment to sustainability and social responsibility.

A seasoned management team leads Applied Materials with decades of experience in semiconductors and related industries. The company's Chief Executive Officer is Gary Dickerson, who has been with Applied Materials since 2013 and has led the company through sustained growth and innovation. Other key management team members include Brice Hill, Chief Financial Officer and Omkaram Nalamasu, Chief Technology Officer.

Applied Materials has delivered strong financial performance over the past few years, driven by the growing demand for advanced semiconductor and display technologies. The company has been reporting modest increases in revenue, net income, and profit margin over the past several years. 

Applied Materials' valuation metrics align with its industry peers with price-to-earnings and price-to-book ratios that parallel the industry. Its strong financial performance, growth prospects, and favorable industry trends support its valuation. Applied Materials' stock price has been on an upward trend over the past few years, driven by the company's strong financial performance and growth prospects. However, the company's stock price has been somewhat volatile in recent months due to global supply chain disruptions and geopolitical tensions.

The semiconductor industry has been experiencing strong growth in recent years, driven by the increasing demand for advanced electronics and digitalization. However, the industry faces significant challenges, including rising geopolitical tensions, global supply chain disruptions, and regulatory pressures. Given its strong technology portfolio and established customer relationships, Applied Materials is well-positioned to capitalize on the industry's growth prospects. The company also faces intense competition from industry peers such as Lam Research and ASML.

Given the industry's strong growth prospects, many governments worldwide are investing heavily in developing their semiconductor industries to reduce reliance on imports and enhance national security. This has led to increased competition and regulatory pressures in the industry, which could impact Applied Materials' growth prospects and profitability.

In addition, the industry is subject to significant cyclical fluctuations, which can lead to sharp declines in demand and revenue. This can be particularly challenging for Applied Materials, which relies heavily on the semiconductor industry for its revenue and profits.

To mitigate these risks, Applied Materials is focused on expanding its product portfolio, diversifying its customer base, and investing in research and development to maintain its competitive edge. The company also works closely with governments and industry partners to promote open trade and reduce regulatory barriers.

Another growth opportunity for Applied Materials is its leadership in developing equipment for manufacturing OLED displays, which are used in high-end smartphones and televisions. The company's innovations in this area have helped to reduce the cost of manufacturing OLED displays and increase their performance, making them more accessible to a broader range of consumers.

While Applied Materials is well-positioned for growth, the company faces several risks and challenges. One of the biggest challenges is the cyclicality of the semiconductor industry, which can lead to fluctuations in demand and revenue. The industry is also subject to significant geopolitical risks, such as trade tensions between the US and China, which can impact demand for semiconductors and disrupt supply chains.

In addition, there is intense competition in the semiconductor equipment market, with some well-established players and new entrants vying for market share. Applied Materials faces stiff competition from companies like ASML, Lam Research, and KLA, which also provide equipment and services for semiconductor manufacturing.

To mitigate these risks, Applied Materials has implemented a number of risk management strategies, including diversifying its customer base and product offerings, investing in R&D to maintain its competitive edge, and maintaining a strong balance sheet to weather industry downturns.

AMAT Stock Price History

AMAT Stock News Headlines

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Applied Materials (NASDAQ:AMAT) Trading Down 0.7%
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Company Calendar

Last Earnings
5/16/2024
Ex-Dividend for 6/13 Dividend
5/22/2024
Dividend Payable
6/13/2024
Today
7/08/2024
Next Earnings (Estimated)
8/15/2024
Fiscal Year End
10/31/2024

Industry, Sector and Symbol

Industry
Semiconductors & related devices
Sub-Industry
Semiconductor Equipment
Current Symbol
NASDAQ:AMAT
CUSIP
03822210
CIK
6951
Employees
34,000
Year Founded
1967

Price Target and Rating

Average Stock Price Target
$221.84
High Stock Price Target
$300.00
Low Stock Price Target
$160.00
Potential Upside/Downside
-9.9%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.76
Research Coverage
25 Analysts

Profitability

Net Income
$6.86 billion
Pretax Margin
31.23%

Debt

Sales & Book Value

Annual Sales
$26.52 billion
Cash Flow
$8.85 per share
Book Value
$19.47 per share

Miscellaneous

Free Float
825,574,000
Market Cap
$203.92 billion
Optionable
Optionable
Beta
1.56

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Should I Buy Applied Materials Stock? AMAT Pros and Cons Explained

Pros

Here are some ways that investors could benefit from investing in Applied Materials, Inc.:

  • Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor industry, which is a crucial sector for technological advancements.
  • Recent developments in the company's Semiconductor Systems segment have shown promising growth potential, indicating a positive outlook for future earnings.
  • Investors may find it appealing that Applied Materials, Inc. has a strong presence in the display and related industries, which are experiencing increasing demand for advanced technologies.
  • The company's focus on innovation and research and development efforts can lead to the introduction of cutting-edge products that may drive stock price appreciation.
  • With the current stock price of Applied Materials, Inc. showing stability and potential for growth, investors may see it as a favorable investment opportunity.

Cons

Investors should be bearish about investing in Applied Materials, Inc. for these reasons:

  • Amati AIM VCT plc (LSE:AMAT) is a venture capital trust specializing in growth capital investment, not directly related to Applied Materials, Inc., which may cause confusion for investors.
  • While the company operates in multiple segments, any setbacks in one sector could impact overall performance and stock value.
  • Market volatility and competition in the semiconductor and related industries could pose challenges for Applied Materials, Inc.'s growth and profitability.
  • Investors should be cautious of any regulatory changes or geopolitical factors that may affect the company's operations and financial performance.
  • Despite recent positive developments, investors should conduct thorough research and analysis before making investment decisions in Applied Materials, Inc.
These pros and cons were generated based on recent news and financial data from MarketBeat in order to provide readers with the fastest and most accurate insights. They were last updated on Sunday, July 7, 2024. Please send any questions or comments about these Applied Materials pros and cons to contact@marketbeat.com.

AMAT Stock Analysis - Frequently Asked Questions

How have AMAT shares performed this year?

Applied Materials' stock was trading at $162.07 at the beginning of the year. Since then, AMAT stock has increased by 52.0% and is now trading at $246.29.
View the best growth stocks for 2024 here
.

How were Applied Materials' earnings last quarter?

Applied Materials, Inc. (NASDAQ:AMAT) issued its quarterly earnings data on Thursday, May, 16th. The manufacturing equipment provider reported $2.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.97 by $0.12. The business's revenue was up .2% on a year-over-year basis.
Read the conference call transcript
.

How will Applied Materials' stock buyback program work?

Applied Materials' board authorized a stock repurchase plan on Monday, March 13th 2023, which permits the company to buy back $10,000,000,000 in shares, according to EventVestor. This means that the company could buy up to 9.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.

What is Gary Dickerson's approval rating as Applied Materials' CEO?

1,064 employees have rated Applied Materials Chief Executive Officer Gary Dickerson on Glassdoor.com. Gary Dickerson has an approval rating of 93% among the company's employees. This puts Gary Dickerson in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. 84.0% of employees surveyed would recommend working at Applied Materials to a friend.

Does Applied Materials have any subsidiaries?

Applied Materials subsidiaries include Perceptive Engineering, Think Silicon, Hitachi Kokusai Electric, Varian Semiconductor Equipment Associates Inc., Semitool Inc., Advent Solar, Baccini, and others.

Who are Applied Materials' major shareholders?

Top institutional shareholders of Applied Materials include DNB Asset Management AS (0.03%), Boston Common Asset Management LLC (0.02%), Woodstock Corp and Red Spruce Capital LLC. Insiders that own company stock include Prabu G Raja, Omkaram Nalamasu, Brice Hill, Timothy M Deane, Teri A Little, Thomas J Iannotti, Xun Chen, Gary E Dickerson, Daniel Durn and Ginetto Addiego.
View institutional ownership trends
.

How do I buy shares of Applied Materials?

Shares of AMAT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Applied Materials own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Applied Materials investors own include Micron Technology (MU), NVIDIA (NVDA), Alibaba Group (BABA), Advanced Micro Devices (AMD), Intel (INTC), Cisco Systems (CSCO) and Lam Research (LRCX).

This page (NASDAQ:AMAT) was last updated on 7/9/2024 by MarketBeat.com Staff

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