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Applied Materials, Inc. (NASDAQ:AMAT) is a leading company in the semiconductor industry, specializing in the production of chipmaking equipment. The company plays a crucial role in the electronics sector, providing essential tools for manufacturing semiconductors. As of January 27, 2026, Vijay Rakesh from Mizuho Securities set a price target of $370 for AMAT, suggesting a potential upside of 11.21% from its current trading price of $332.71.Recently, AMAT has gained significant attention from investors, as ...

Company Performance - Applied Materials (AMAT) shares decreased by 1.29% to $292.20, underperforming the S&P 500 which fell by 0.34% [1] - Over the past month, AMAT's stock has increased by 10.81%, outperforming the Computer and Technology sector's decline of 1% and the S&P 500's gain of 1.19% [1] Earnings Forecast - The upcoming earnings report for Applied Materials is projected to show earnings per share (EPS) of $2.21, a decrease of 7.14% from the same quarter last year [2] - Revenue is anticipated to be $6.86 billion, reflecting a 4.34% decline compared to the same quarter last year [2] Annual Estimates - For the entire year, Zacks Consensus Estimates forecast earnings of $9.55 per share and revenue of $28.97 billion, indicating increases of 1.38% and 2.11% respectively compared to the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Applied Materials are important as they reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Applied Materials at 3 (Hold) [6] Valuation Metrics - Applied Materials has a Forward P/E ratio of 30.98, which is lower than the industry average Forward P/E of 34.87 [7] - The company has a PEG ratio of 3.06, compared to the Electronics - Semiconductors industry's average PEG ratio of 1.98 [7] Industry Context - The Electronics - Semiconductors industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 103, placing it in the top 43% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1: Market Overview - As of January 6, 2026, two stocks in the information technology sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] Group 2: Company Analysis - Taiwan Semiconductor Manufacturing Co Ltd (TSMC) - TSMC secured a one-year U.S. export license to import chipmaking equipment into its China operations [6] - The stock gained approximately 7% over the past five days, reaching a 52-week high of $331.25 [6] - TSMC's RSI value is reported at 72.1, with shares closing at $322.25 on Monday [6] - The company has an Edge Stock Rating of 88.80 for momentum and 33.75 for value [6] Group 3: Company Analysis - Micron Technology Inc - Micron reported first-quarter revenue of $13.64 billion, exceeding analyst estimates of $12.83 billion [6] - The company posted adjusted earnings of $4.78 per share, surpassing analyst expectations of $3.95 per share [6] - Micron's stock increased by around 26% over the past month, achieving a 52-week high of $325.53 [6] - The RSI value for Micron is 71.1, with shares closing at $312.15 on Monday [6]

分组1 - As of January 6, 2026, two stocks in the information technology sector are identified as potentially overbought, signaling caution for momentum-focused investors [1] - The Relative Strength Index (RSI) is highlighted as a key momentum indicator, with a value above 70 indicating that a stock may be overbought [2] 分组2 - Taiwan Semiconductor Manufacturing Company (TSMC) has secured a one-year U.S. export license for importing chipmaking equipment into its China operations, resulting in a stock gain of approximately 7% over the past five days and a current RSI value of 72.1 [6] - TSMC's stock closed at $322.25, with a 52-week high of $331.25 and an Edge Stock Rating momentum score of 88.80 [6] - Micron Technology reported first-quarter revenue of $13.64 billion, exceeding analyst estimates, and posted adjusted earnings of $4.78 per share, also above expectations [6] - Micron's stock has increased by around 26% over the past month, with a 52-week high of $325.53 and an RSI value of 71.1 [6] - Micron's shares closed at $312.15 after a decline of 1% [6]

Core Viewpoint - The United States has granted an annual license to Samsung Electronics and SK Hynix, allowing them to import US chipmaking equipment to their facilities in China for the year 2026, providing temporary relief to these companies in their operations [1] Group 1 - The license is significant as it enables Samsung and SK Hynix to continue their chip production activities in China without facing immediate restrictions [1] - This development reflects a potential easing of trade tensions between the US and these South Korean companies, which are crucial players in the global semiconductor industry [1] - The annual license is expected to support the ongoing operations and competitiveness of Samsung and SK Hynix in the rapidly evolving semiconductor market [1]

Core Viewpoint - Republican lawmakers have accused Intel of jeopardizing U.S. national security due to its evaluation of chipmaking equipment from a company with strong ties to China [1] Group 1: National Security Concerns - Intel is under scrutiny for potentially threatening U.S. national security by considering equipment from a Chinese-affiliated company [1] - The revelation was made by Reuters, highlighting the sensitive nature of the semiconductor supply chain and its implications for national security [1] Group 2: Political Reactions - The accusations from Republican lawmakers reflect growing concerns over foreign influence in critical technology sectors [1] - This situation underscores the increasing tension between U.S. lawmakers and companies that engage with Chinese firms in the technology space [1]

Core Insights - A sector-wide pullback in Asian chip stocks was triggered by a significant decline in SoftBank, following Nvidia's unexpected drop despite strong earnings and a positive outlook [1][4] Company-Specific Summary - SoftBank's stock fell over 10% in Tokyo after it recently sold its Nvidia shares, although it still retains control of British semiconductor company Arm, which provides chip architecture and designs for Nvidia [2] - SK Hynix, a major supplier of high-bandwidth memory for AI applications, saw its stock decline nearly 10%, while Samsung Electronics, another supplier, dropped over 5% [3] - Taiwan Semiconductor Manufacturing Company, the largest contract chipmaker and manufacturer of Nvidia's chip designs, experienced a decline of over 4% [3] - Renesas Electronics, a key supplier for Nvidia, fell by 2.3%, and Tokyo Electron, which supplies essential chipmaking equipment, was down 5.32% [5] Industry Overview - The overall retreat in major Asian semiconductor companies followed Nvidia's decline of over 3% in the U.S., despite the company beating Wall Street expectations for its third-quarter earnings and providing a stronger-than-expected fourth-quarter sales guidance [4]

Core Viewpoint - Applied Materials anticipates a decline in spending on chipmaking equipment in China by 2026 due to stricter U.S. export controls, although overall revenue is expected to be stronger in the latter half of the year [1] Group 1: Revenue Impact - The company projects a $600 million reduction in fiscal 2026 revenue as a result of expanded U.S. export restrictions affecting shipments to China-based customers [2] - Current-quarter revenue is forecasted at $6.85 billion, with a variance of $500 million, compared to analysts' expectations of $6.76 billion [3] - The suspension of the affiliate rule is expected to enable approximately $600 million in sales for the full fiscal year [4] Group 2: Market Dynamics - Applied Materials' share of sales in China has decreased from nearly 40% to the mid-20% range, with foreign competitors still able to sell to Chinese companies [5] - The company can no longer supply China's memory chip and older-generation chipmaking markets due to tighter U.S. controls, but does not foresee major new shipment restrictions [4] Group 3: Future Outlook - Customers indicate that spending on wafer fab equipment is likely to accelerate starting in the second half of calendar 2026 [6] - The company forecasts a profit per share of $2.18, excluding one-off items, which is higher than the estimated $2.13 [6]

Core Insights - Wall Street anticipates a year-over-year decline in earnings for Applied Materials (AMAT) due to lower revenues, with earnings expected to be $2.11 per share, reflecting a -9.1% change, and revenues projected at $6.7 billion, down 4.8% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for November 13, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 0.4% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Applied Materials is lower than the consensus estimate, resulting in an Earnings ESP of -1.33%, which complicates predictions of an earnings beat [12]. - The stock currently holds a Zacks Rank of 3, indicating a hold position, which further diminishes the likelihood of a positive earnings surprise [12]. Historical Performance - In the last reported quarter, Applied Materials exceeded expectations with earnings of $2.48 per share against an estimate of $2.34, achieving a surprise of +5.98% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Industry Context - In the broader Zacks Electronics - Semiconductors industry, Silvaco Group, Inc. is expected to report a loss of $0.06 per share, with revenues projected at $16.07 million, up 46.5% year-over-year [18][19]. - Silvaco's consensus EPS estimate has been revised significantly higher by 216.7% in the last 30 days, but it has an Earnings ESP of 0.00%, making predictions of an earnings beat uncertain [19][20].