Citi (C) analysts express optimism for the semiconductor sector, upgrading several companies from Neutral to Buy, including Nova (NOVA), Veeco Instruments (VECO), Advanced Energy Industries (AEIS), and MKS Instruments (MKSI). The analysts' positive outlook spans small-, mid-, and large-cap companies, as well as component manufacturers and consumable chip producers.
In the closing of the recent trading day, Applied Materials (AMAT) stood at $163.87, denoting a +0.76% change from the preceding trading day.
Applied Materials shares have dropped 22% since I last wrote about them, but I still believe AI-driven DRAM demand will boost their growth, making the stock a strong buy. New AI models like OpenAI's o3 require more memory, driving up DRAM demand and powering Applied Materials' sales of fabrication and manufacturing equipment. Despite Wall Street's bearish outlook, Applied Materials' valuation is 32% lower than the sector median, yet its forward revenue growth is 10% higher.
Applied Materials (AMAT) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Applied Materials (AMAT 1.33%) is one of the few stocks related to artificial intelligence (AI) that has retreated this year. Shares are down 37% from their all-time high as of this writing.
Applied Materials stock has fallen to about break-even return over the last 12 months. Weak consumer demand is causing some short-term pain as OEMs scale back purchase from fabs. Despite short-term fluctuations, AMAT's solid market position and financials make it a compelling long-term investment in the semiconductor manufacturing sector.
Applied Materials stock price has nosedived and moved into a technical bear market after falling by over 33% from the highest point this year. AMAT was trading at $170, its lowest level since February 5, meaning that it has largely erased most of the gains made earlier this year.
Citi made several cuts in the A.I. race. For one, they lowered price targets for Applied Materials (AMAT), KLA Corp. (KLAC) and Lam Research (LRCX).
Applied Materials (AMAT 0.16%) has been an incredible long-term winner in the stock market but has retreated significantly from its all-time highs.
With the S&P 500 and Nasdaq Composite hovering near their all-time highs, many investors might be reluctant to add new stocks to their portfolios. After all, Warren Buffett famously told investors to "be fearful when others are greedy and greedy when others are fearful," and a lot of greed is driving many stocks to historically high valuations.
Applied Materials (AMAT 0.16%), one of the world's largest suppliers of semiconductor manufacturing equipment, has been a great long-term investment. Over the past 10 years, its stock rallied more than 600% and generated a total return of over 700%.
Applied Materials' discounted valuation and strong tech leadership make it a hold amid market challenges and long-term growth potential.