It's a nice morning for the A.I. trade. Keybanc upgraded Lam Research (LRCX) and Applied Materials (AMAT) over the semiconductor space's long-term trajectory.
KeyBanc upgrades shares of the chipmaking equipment companies to Overweight.
Heading into 2025, I didn't have a ton of AI exposure in my portfolio. Sure, I own a few stocks that should benefit from long-term AI tailwinds, but as far as direct artificial intelligence plays, there aren't many.
Applied Materials (AMAT) closed at $173.65 in the latest trading session, marking a +1.63% move from the prior day.
In the most recent trading session, Applied Materials (AMAT) closed at $176.99, indicating a -0.47% shift from the previous trading day.
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.