Now is the time to buy Applied Materials AMAT-2.13% stock, Jefferies analysts said Friday, citing recovering demand that should help shares continue to rise despite heightened U.S.-China trade tensions.
Applied Materials (AMAT) closed the most recent trading day at $147.68, moving -1.99% from the previous trading session.
AMAT's leadership in AI-powered semiconductor manufacturing, advanced packaging technologies and discounted valuation make the stock worth holding.
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.
In the latest trading session, Applied Materials (AMAT) closed at $152.12, marking a -1.46% move from the previous day.
Despite a 22% drop in the last six months, I remain bullish on Applied Materials due to strong AI-driven DRAM demand. The AI era's rapid expansion is supercharging DRAM needs, positioning AMAT well for long-term growth in memory fabrication equipment. The Company's leadership in HBM manufacturing, with a 50% market share in key process steps, ensures it captures substantial market opportunities.
I rate Applied Materials as a STRONG BUY due to its historical growth, high value returns, and promising outlook despite the recent 52-week low. AMAT's diversified product portfolio in semiconductor processing, display, and global services segments ensures stability and growth potential, even amidst tariff threats. The company's robust financial health, with impressive revenue, net income, and free cash flow growth, alongside sustainable dividends and share buybacks, strengthens its investment appeal.
Several big-name firms have announced significant new share buyback programs as Q1 2025 comes to a close. The three stocks below all have large share buyback capacity, equal to 8% or more of their market capitalizations.
Applied Materials, Inc.'s recent share price dip offers a prime opportunity for value and growth investors, supported by strong financial performance and robust AI-driven market growth. AMAT's fiscal results show record revenue, improved margins, and double-digit EPS growth, highlighting its solid business fundamentals. AMAT also carries strong profitability, a solid balance sheet, and ample liquidity, enabling R&D investment and shareholder returns.
I reiterate a 'Buy' rating for Applied Materials with a one-year target price of $196 per share, driven by its strong position in AI and energy-efficient computing markets. AMAT reported 6.8% revenue growth and 9.2% adjusted net income growth, with notable strength in its Semiconductor Systems segment. A new $10 billion share repurchase authorization, on top of $7.6 billion remaining, demonstrates management's confidence and is a positive catalyst for the stock.
When you're young, your investment goals revolve around growth. In retirement, those goals change to income.
The market was enchanted with artificial intelligence (AI) in 2023 and 2024. At one point, it felt like AI stocks couldn't go down.