Semiconductor giant Applied Materials (NASDAQ:AMAT) could highlight new AI-related products and how export restrictions to China are impacting the sector when the company reports fourth-quarter financial results Thursday after market close.Here are the earnings estimates, what analysts are saying ahead of the report, and key items to watch.Earnings Estimates: Analysts expect Applied Materials to report fourth-quarter revenue of $6.67 billion, down from $7.04 billion in last year's fourth quarter, according ...

We recently published 12 Latest Stocks on Jim Cramer's Radar . Applied Materials Inc (NASDAQ:AMAT) is one of the stocks Jim Cramer recently discussed. Applied Materials Inc (NASDAQ:AMAT) is a key company in the semiconductor supply chain, as its machines enable chip manufacturers throughout the production process. Cramer discussed the firm’s role in the evolving high-bandwidth memory industry. HBM chips are just as important as AI GPUs since they enable computers to store and transfer data at high speeds ...

Earnings Report - Applied Materials, Inc. is set to release its fourth-quarter earnings results after the market closes on Thursday, with analysts expecting earnings of $2.10 per share, a decrease from $2.32 per share in the same quarter last year [1] - The consensus estimate for quarterly revenue is $6.67 billion, down from $7.04 billion a year earlier [1] Analyst Ratings - Stifel analyst Brian Chin has maintained a Buy rating for Applied Materials and raised the price target from $215 to $250 [2] - The company currently offers an annual dividend yield of 0.80%, translating to a quarterly dividend of 46 cents per share, or $1.84 annually [2] Dividend Analysis - To achieve a monthly income of $500 from dividends, an investment of approximately $745,693 or around 3,261 shares is required, while a more modest goal of $100 per month would need an investment of $149,093 or about 652 shares [2] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [3][4] Stock Performance - Shares of Applied Materials fell by 2.7% to close at $228.67 on Tuesday [4]

In global trade, the Stoxx Europe 600 advanced 0.4% led by Infineon, up 2.6%, after forecasting higher chip sales driven by surging AI data center demand. The FTSE 100 edged 0.2% higher in London. Asian markets were mixed. South Korea’s Kospi climbed 1.1% for a third session, boosted by tech stocks. Japan’s Nikkei rose 0.4%, while SoftBank slipped 3.5%. Taiwan’s TAIEX gained 0.6% after Foxconn beat profit forecasts. China’s Shanghai Composite dipped 0.1%. U.S. Treasury yields eased as bond trading resumed ...

Group 1 - European stocks are expected to open higher as traders anticipate the end of the longest government shutdown in U.S. history, with a spending bill heading to the House for a likely pass [1] - U.S. stocks ended mixed, with concerns about AI-related stocks impacting performance despite progress towards ending the government shutdown [4] - The Dow Jones Industrial Average rose 1.2% to a record close, while the S&P 500 increased by 0.2%, and the Nasdaq Composite fell by 0.3% after SoftBank sold its entire stake in Nvidia Corp for $5.83 billion [5] Group 2 - Economists are predicting a quarter-point rate cut due to a deteriorating labor market and cooling inflation, with attention on upcoming German inflation data for insights into the European Central Bank's policy [2] - Major companies such as Cisco, Disney, and Applied Materials are set to report their financial results this week, which could influence market sentiment [2] - European stocks closed at a record high, with the pan-European Stoxx 600 rising by 1.3%, driven by expectations of U.S. shutdown relief and Bank of England rate-cut bets [6]

Industry Overview - The semiconductor systems and services industry is experiencing significant demand growth driven by megatrends such as AI, IoT, 5G, and electric vehicles (EVs) [1] Investment Strategy - The focus is on long-term investments in U.S. and European equities, particularly undervalued growth stocks and high-quality dividend growers [1] - Sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is emphasized as a more reliable driver of returns than valuation alone [1] Personal Investment Philosophy - The investment approach aims to ensure financial freedom for the investor and their family, allowing for the ability to work in fulfilling environments rather than seeking to escape work altogether [1]

Industry Overview - The semiconductor systems and services industry is experiencing significant demand growth driven by megatrends such as AI, IoT, 5G, and electric vehicles (EVs) [1] Investment Focus - The focus is on U.S. and European equities, particularly undervalued growth stocks and high-quality dividend growers [1] - Sustained profitability, characterized by strong margins, stable and expanding free cash flow, and high returns on invested capital, is emphasized as a more reliable driver of returns than valuation alone [1] Investment Strategy - The investment strategy includes managing a portfolio publicly on eToro, allowing others to replicate real-time investment decisions [1] - The goal of the investment approach is to ensure sufficient assets for freedom in work and life, rather than complete financial independence [1]

Core Insights - The semiconductor cycle is showing early signs of recovery, prompting investors to reassess which equipment makers are best positioned for growth [2] - Teradyne (TER) has seen benefits from automation and test-equipment demand, but its valuation appears stretched compared to peers [2] - Lam Research (LRCX) and Applied Materials (AMAT) are demonstrating strong financial performance driven by AI and memory spending, making them compelling alternatives [2] Valuation and Performance Comparison - LRCX and AMAT have a lower price-to-operating income (P/OpInc) ratio compared to Teradyne, yet they exhibit higher revenue and operating income growth [3] - This discrepancy suggests that investing in LRCX and AMAT may be more advantageous than investing in TER [3] - The focus is not solely on the direction of TER stock, but rather on the overall positioning of investment portfolios [3] Contextual Analysis - Teradyne provides testing solutions for various sectors, including semiconductor, industrial automation, and wireless device manufacturing [4] - A year-over-year analysis of metrics can help determine if Teradyne's stock is currently overpriced relative to competitors [5] - Consistent underperformance in revenue and operating income growth for Teradyne would reinforce the notion that its stock is overpriced [5] Additional Considerations - Valuation should be analyzed from multiple perspectives to ensure a comprehensive investment strategy [6] - Trefis High Quality Portfolio aims to mitigate stock-specific risk while providing upside potential, outperforming benchmarks like the S&P 500 and Russell indices [6]

Core Insights - The AI boom encompasses more than just the prominent companies in the "Magnificent Seven," indicating a broader range of investment opportunities in the AI sector [1] Group 1 - The article highlights that many companies are leveraging AI beyond the obvious leaders, suggesting a diverse landscape of potential investments [1]

Core Insights - Applied Materials (AMAT) is set to report its fourth-quarter fiscal 2025 results on November 13, with expected revenues of $6.7 billion, reflecting a 4.8% decline year-over-year [1][8] - The company projects non-GAAP earnings of $2.11 per share, indicating a 9% decrease from the same quarter last year [2][8] - AMAT has a strong earnings surprise history, having beaten the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 5.6% [3] Revenue and Earnings Projections - For Q4 fiscal 2025, AMAT anticipates revenues of $6.7 billion, with a potential variance of +/- $500 million [1][8] - Non-GAAP EPS is projected at $2.11, with a downward revision of one cent in the past 30 days [2][3] - The Semiconductor Systems segment is expected to benefit from robust demand for leading-edge logic and DRAM technologies [6][8] Market Dynamics and Challenges - The Display and Adjacent Markets segment is likely to see growth due to increased adoption of OLED displays and rising equipment demand from consumer device manufacturers [9] - However, AMAT faces challenges in China, including capacity digestion, pending export license approvals, and trade restrictions, which may impact revenue [9][10] - Persistent tariff pressures and macroeconomic uncertainty are additional headwinds for the company's growth [10] Competitive Landscape - AMAT operates in a competitive environment, facing rivals such as Lam Research, ASML Holding, and KLA Corporation [14][16] - Despite market sell-offs and competition, AMAT maintains a leadership position with superior design wins and is well-positioned to capitalize on the demand for next-generation chips [17][18] Investment Outlook - AMAT is currently trading at a forward price-to-sales ratio of 4.6X, which is lower than the industry average of 7.51X, indicating a potential investment opportunity [12] - The company is expected to benefit from AI-driven semiconductor demand and has made significant advancements in cutting-edge chip manufacturing [18] - Overall, AMAT's innovation and market positioning suggest it is worth retaining as an investment at this time [19]