GERMANY - 2024/04/03: In this photo illustration, an Applied Materials, Inc logo seen displayed on a ... [+] tablet. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesApplied Materials stock has had a solid year thus far, rising by about 14% year-to-date. In comparison, Applied’s semiconductor industry peer Texas Instruments stock has gained about 21% over the same period. Applied is set to report its Q4 FY’24 results around mid-November 1 ...

Company Performance - Applied Materials (AMAT) closed at $183.24, reflecting a -0.73% change from the previous day, underperforming the S&P 500 which had a daily loss of 0.02% [1] - Over the past month, AMAT shares have decreased by 0.83%, while the Computer and Technology sector gained 4.44% and the S&P 500 increased by 3.77% [1] - The upcoming earnings per share (EPS) for AMAT is projected at $2.18, indicating a 2.83% increase year-over-year, with quarterly revenue expected to be $6.94 billion, up 3.23% from the previous year [1] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $8.51 per share and revenue of $27.07 billion, representing increases of +5.71% and +2.09% respectively from the last year [2] Analyst Estimates and Valuation - Recent modifications to analyst estimates for AMAT are crucial as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [2] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks AMAT at 3 (Hold), with the consensus EPS estimate remaining stagnant over the past month [3] - AMAT has a Forward P/E ratio of 21.68, which is a discount compared to the industry average Forward P/E of 27.9, and a PEG ratio of 2.39, compared to the industry average PEG ratio of 2.04 [3] Industry Context - The Semiconductor Equipment - Wafer Fabrication industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 105, placing it in the top 42% of over 250 industries [4] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

Applied Materials, Inc. (AMAT) is currently trading at an attractive price-to-earnings (P/E) multiple of 19.29X, which is lower than both the Zacks Semiconductor Equipment - Wafer Fabrication industry average of 21.22X and the S&P 500 average of 22.2X. This discounted valuation has caught the attention of investors, raising the question: Is now the right time to buy or hold the stock? Image Source: Zacks Investment Research Applied Materials' Technological Leadership Applied Materials has had a decent year- ...

GERMANY - 2024/04/03: In this photo illustration, an Applied Materials, Inc logo seen displayed on a ... [+] tablet. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Could Applied Materials stock reach $350 in the next few years? We think there is a real possibility. Consider this, less than two years ago, at the end of October 2022, Applied Materials stock was trading at around $80 levels. Since then, the stock has grown to a little ov ...

In this article, we will take a look into Applied Materials Inc's (AMAT, Financial) DCF analysis, a reliable and data-driven approach to estimating its intrinsic value. Instead of using future free cash flow as in the traditional DCF model, the GuruFocus DCF calculator uses EPS without NRI as the default for the DCF model based on research that shows that historically stock prices have been more correlated with earnings than free cash flow. As of 2024-10-09, Applied Materials Inc's intrinsic value as calcul ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Applied Materials (AMAT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Applied Materials currently has an average brokerage r ...

Industry Overview - The wafer fab equipment (WFE) industry is expected to experience solid growth driven by strong semiconductor demand and existing capacity levels [1][7] - Key drivers include the adoption of AI, IoT, EVs, and renewable energy, supported by government regulations and funding globally [1][4] - The industry is characterized by long sales cycles and contracts, providing relative stability amid economic uncertainty [12][14] Demand and Capacity - Semiconductor demand is anticipated to remain robust, particularly due to AI-driven workloads, which will increase demand for servers and semiconductors [2][7] - The equipment industry is projected to grow by 3.4% in 2023, with sales expected to strengthen by 17% in 2024 [2][3] - China, Taiwan, and Korea are expected to be the top destinations for WFE through 2025, with China projected to spend a record $35 billion in 2024 [3][8] Technology Transitions - Significant technology transitions, such as the shift to larger wafer sizes and advanced memory technologies like HBM, are driving equipment purchases [5][6] - HBM is expected to improve energy efficiency by 30% and is projected to grow from 8.4% of DRAM revenue in 2023 to 20.1% by the end of 2024 [5][6] - The integration of memory with compute is expected to stabilize demand over the next decade [7] Geopolitical Factors - Export regulations and geopolitical tensions, particularly between the U.S. and China, pose challenges for the industry [8][9] - Despite these challenges, the demand for semiconductor equipment is expected to remain strong due to strategic investments in capacity by various countries [8][9] Company Performance - Applied Materials (AMAT) is well-positioned due to its deep customer relationships and broad product offerings, with expectations of significant growth in its HBM business [15][16][18] - ASML Holding N.V. (ASML) anticipates continued momentum driven by AI and energy transition, with a strong order book supporting growth [19][20][21] - Lam Research Corp. (LRCX) is diversifying its focus and expects substantial increases in WFE spending, particularly in advanced compute and memory segments [22][23][24] Financial Outlook - The Zacks Semiconductor Equipment - Wafer Fabrication Industry has a strong growth outlook, with a Zacks Industry Rank of 16, placing it in the top 6% of classified industries [10][11] - The industry's aggregate earnings estimate for 2024 shows a steady increase of 4.6% over the past year, with a projected 14.8% increase for 2025 [11] - Stocks in this industry have collectively gained 41.2% over the past year, outperforming the broader market indices [12]

Core Insights - Applied Materials stock has increased nearly 10% in the past month and approximately 30% year-to-date, outperforming its semiconductor peer Texas Instruments, which has gained about 22% this year [1] Group 1: Economic Factors - The Federal Reserve's recent interest rate cut of 50 basis points in September marks the first reduction in nearly four years, with the current benchmark rate at 4.75% to 5%, allowing for potential further cuts [2] - Lower interest rates reduce borrowing costs for manufacturers, making larger capital expenditure projects more feasible, which could increase demand for Applied Materials' semiconductor fabrication equipment [2] Group 2: Industry Trends - The semiconductor industry is stabilizing after a downturn, with Applied Materials reporting a 5% year-over-year revenue increase to $6.8 billion in Q3 2024, and earnings of $2.12 per share, exceeding expectations [3] - For Q4 FY'24, Applied Materials projects revenue of approximately $6.93 billion, with adjusted diluted earnings expected between $2.00 and $2.36 per share, indicating potential growth of up to 8.5% at the upper end of guidance [3] - The demand for logic chips is recovering alongside the PC market, and there is growing demand for GPUs from data centers, while the memory market is shifting towards advanced high-bandwidth memory driven by AI sector needs [3] Group 3: Company Performance - Over the past three years, Applied Materials' stock performance has been volatile, with returns of 84% in 2021, -38% in 2022, and 68% in 2023, contrasting with the more stable performance of the Trefis High Quality Portfolio [4] - Currently, Applied Materials stock trades at about $201 per share, with potential benefits from higher orders and a shift towards advanced equipment driven by AI applications, which is also improving the company's margins [4] - Gross margins increased by 100 basis points year-over-year to 47.3% in Q3 [4]

Shares of Applied Materials Inc (AMAT, Financial) surged 3.44% in mid-day trading on Oct 2. The stock reached an intraday high of $204.50, before settling at $203.98, up from its previous close of $197.19. This places AMAT 20.29% below its 52-week high of $255.89 and 57.86% above its 52-week low of $129.21. Trading volume was 1,714,965 shares, 24.6% of the average daily volume of 6,964,893.Wall Street Analysts ForecastBased on the one-year price targets offered by 29 analysts, the average target price for A ...

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