AMAT has been one of the hottest stocks in the tech sector, climbing to fresh all-time highs of $739 a share in Tuesday's trading session, and has now rallied nearly 200% year to date.
Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) stock is ripping again.
Applied Materials (AMAT) shares drew investor attention on Monday, rising more than 10% after KeyBanc Capital Markets issued early commentary ahead of the company's upcoming third-quarter earnings. The move came as markets reassessed expectations around the semiconductor equipment maker's near-term performance and longer-term growth outlook tied to artificial intelligence infrastructure demand.
Applied Materials' cash flow falls after strategic capacity and supply chain investments as AI-driven chip demand supports growth through 2027 and beyond.
Here is how Applied Materials (AMAT) and A10 Networks (ATEN) have performed compared to their sector so far this year.
Applied Materials (AMAT) closed at $585.88 in the latest trading session, marking a -8.48% move from the prior day.
Applied Materials (AMAT) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
I rate Applied Materials a strong buy rating with a $802 price target, reflecting a 30% upside from current level of $617. The key growth drivers are leading-edge logic and gate-all-around, DRAM and HBM, advanced packaging, and Applied Global Services (AGS). In my model, these drivers can add roughly $6.6 billion of incremental revenue and about $2.26 of incremental EPS, before including operating leverage, which helps support $15.9 FWD 2027 EPS.
This week's news that Applied Materials Inc NASDAQ: AMAT has just crossed the price-to-sales valuation it held at the peak of the dot-com bubble in April 2000 might have been enough to get even the most committed bulls reaching for the Pepto.
Applied Materials' AGS unit is turning its installed base into a recurring growth engine with AI-enabled services and expanding margins.
Applied Materials is upgraded to Buy for long-term investors as price now aligns with fundamental performance. AMAT's record Q2 results, robust AI-driven WFE demand, and recurring service revenues reinforce its industry leadership and growth outlook. Despite trading at a discount to peers on EV/revenue, AMAT's forward growth acceleration presents a mispricing opportunity.
Investors in the semiconductor capital equipment sector often face a structural question about where value is created in the supply chain.