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Applied Materials (AMAT) Stock Price, News & Analysis

Applied Materials logo
$185.86
+4.04 (+2.22%)
(As of 03:38 PM ET)

About Applied Materials Stock (NASDAQ:AMAT)

Key Stats

Today's Range
$183.30
$186.75
50-Day Range
$174.75
$213.89
52-Week Range
$139.21
$255.89
Volume
2.08 million shs
Average Volume
6.06 million shs
Market Capitalization
$153.22 billion
P/E Ratio
20.88
Dividend Yield
0.86%
Price Target
$229.14
Consensus Rating
Moderate Buy

Company Overview

Applied Materials, Inc. is a global leader in providing innovative materials engineering solutions to the semiconductor, display, and related industries. Founded in 1967, the company's mission is to create customer value by developing technologies that enable them to build transformative products and drive their growth. With a commitment to sustainability and social responsibility, Applied Materials is dedicated to positively impacting the environment, communities, and society.

Applied Materials offers a wide range of products and services that enable customers to manufacture advanced semiconductors, flat panel displays, and solar photovoltaic cells. The company's product portfolio includes chemical and physical vapor deposition equipment, etch, cleaning, and metrology. Applied Materials also provides advanced software, automation, and services to optimize the performance and efficiency of its equipment and enable customers to reduce their time-to-market and manufacturing costs.

Applied Materials serves diverse semiconductor, display, and solar customers, including leading semiconductor manufacturers, foundries, memory and logic device makers, and display panel manufacturers. Some of the company's key customers include Samsung, Intel, TSMC, and Micron.

Headquartered in Santa Clara, California, Applied Materials has a global presence with operations in over 20 countries. The company has a strong track record of innovation and has been recognized for its achievements and contributions to the industry. In 2020, Applied Materials was named to the Dow Jones Sustainability World Index for the 16th consecutive year, reflecting its commitment to sustainability and social responsibility.

A seasoned management team leads Applied Materials with decades of experience in semiconductors and related industries. The company's Chief Executive Officer is Gary Dickerson, who has been with Applied Materials since 2013 and has led the company through sustained growth and innovation. Other key management team members include Brice Hill, Chief Financial Officer and Omkaram Nalamasu, Chief Technology Officer.

Applied Materials has delivered strong financial performance over the past few years, driven by the growing demand for advanced semiconductor and display technologies. The company has been reporting modest increases in revenue, net income, and profit margin over the past several years. 

Applied Materials' valuation metrics align with its industry peers with price-to-earnings and price-to-book ratios that parallel the industry. Its strong financial performance, growth prospects, and favorable industry trends support its valuation. Applied Materials' stock price has been on an upward trend over the past few years, driven by the company's strong financial performance and growth prospects. However, the company's stock price has been somewhat volatile in recent months due to global supply chain disruptions and geopolitical tensions.

The semiconductor industry has been experiencing strong growth in recent years, driven by the increasing demand for advanced electronics and digitalization. However, the industry faces significant challenges, including rising geopolitical tensions, global supply chain disruptions, and regulatory pressures. Given its strong technology portfolio and established customer relationships, Applied Materials is well-positioned to capitalize on the industry's growth prospects. The company also faces intense competition from industry peers such as Lam Research and ASML.

Given the industry's strong growth prospects, many governments worldwide are investing heavily in developing their semiconductor industries to reduce reliance on imports and enhance national security. This has led to increased competition and regulatory pressures in the industry, which could impact Applied Materials' growth prospects and profitability.

In addition, the industry is subject to significant cyclical fluctuations, which can lead to sharp declines in demand and revenue. This can be particularly challenging for Applied Materials, which relies heavily on the semiconductor industry for its revenue and profits.

To mitigate these risks, Applied Materials is focused on expanding its product portfolio, diversifying its customer base, and investing in research and development to maintain its competitive edge. The company also works closely with governments and industry partners to promote open trade and reduce regulatory barriers.

Another growth opportunity for Applied Materials is its leadership in developing equipment for manufacturing OLED displays, which are used in high-end smartphones and televisions. The company's innovations in this area have helped to reduce the cost of manufacturing OLED displays and increase their performance, making them more accessible to a broader range of consumers.

While Applied Materials is well-positioned for growth, the company faces several risks and challenges. One of the biggest challenges is the cyclicality of the semiconductor industry, which can lead to fluctuations in demand and revenue. The industry is also subject to significant geopolitical risks, such as trade tensions between the US and China, which can impact demand for semiconductors and disrupt supply chains.

In addition, there is intense competition in the semiconductor equipment market, with some well-established players and new entrants vying for market share. Applied Materials faces stiff competition from companies like ASML, Lam Research, and KLA, which also provide equipment and services for semiconductor manufacturing.

To mitigate these risks, Applied Materials has implemented a number of risk management strategies, including diversifying its customer base and product offerings, investing in R&D to maintain its competitive edge, and maintaining a strong balance sheet to weather industry downturns.

Applied Materials Stock Analysis - MarketRank™

See Top Rated MarketRank™ Stocks
96th Percentile Overall Score

AMAT MarketRank™: 

Applied Materials scored higher than 96% of companies evaluated by MarketBeat, and ranked 16th out of 660 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

  • Consensus Rating

    Applied Materials has received a consensus rating of Moderate Buy. The company's average rating score is 2.68, and is based on 15 buy ratings, 7 hold ratings, and no sell ratings.

  • Amount of Analyst Coverage

    Applied Materials has been the subject of 13 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

  • Read more about Applied Materials' stock forecast and price target.
  • Earnings Growth

    Earnings for Applied Materials are expected to grow by 12.10% in the coming year, from $8.51 to $9.54 per share.

  • Price to Earnings Ratio vs. the Market

    The P/E ratio of Applied Materials is 20.92, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 129.64.

  • Price to Earnings Ratio vs. Sector

    The P/E ratio of Applied Materials is 20.92, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 242.91.

  • Price to Earnings Growth Ratio

    Applied Materials has a PEG Ratio of 2.24. PEG Ratios above 1 indicate that a company could be overvalued.

  • Price to Book Value per Share Ratio

    Applied Materials has a P/B Ratio of 9.56. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

  • Read more about Applied Materials' valuation and earnings.
  • Percentage of Shares Shorted

    1.91% of the float of Applied Materials has been sold short.
  • Short Interest Ratio / Days to Cover

    Applied Materials has a short interest ratio ("days to cover") of 2.3, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Applied Materials has recently decreased by 3.57%, indicating that investor sentiment is improving.
  • Dividend Yield

    Applied Materials has a dividend yield of 0.87%, which is in the bottom 25% of all stocks that pay dividends.

  • Dividend Growth

    Applied Materials does not have a long track record of dividend growth.

  • Dividend Coverage

    The dividend payout ratio of Applied Materials is 17.98%. This payout ratio is at a healthy, sustainable level, below 75%.

  • Dividend Sustainability

    Based on earnings estimates, Applied Materials will have a dividend payout ratio of 16.77% next year. This indicates that Applied Materials will be able to sustain or increase its dividend.

  • Read more about Applied Materials' dividend.
  • Percentage of Shares Shorted

    1.91% of the float of Applied Materials has been sold short.
  • Short Interest Ratio / Days to Cover

    Applied Materials has a short interest ratio ("days to cover") of 2.3, which is generally considered an acceptable ratio of short interest to trading volume.
  • Change versus previous month

    Short interest in Applied Materials has recently decreased by 3.57%, indicating that investor sentiment is improving.
  • News Sentiment

    Applied Materials has a news sentiment score of 0.67. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.45 average news sentiment score of Computer and Technology companies.
  • News Coverage This Week

    MarketBeat has tracked 19 news articles for Applied Materials this week, compared to 18 articles on an average week.
  • Search Interest

    Only 122 people have searched for AMAT on MarketBeat in the last 30 days. This is a decrease of -3% compared to the previous 30 days.
  • MarketBeat Follows

    44 people have added Applied Materials to their MarketBeat watchlist in the last 30 days. This is an increase of 69% compared to the previous 30 days.
  • Insider Buying vs. Insider Selling

    In the past three months, Applied Materials insiders have not sold or bought any company stock.

  • Percentage Held by Insiders

    Only 0.29% of the stock of Applied Materials is held by insiders.

  • Percentage Held by Institutions

    80.56% of the stock of Applied Materials is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

  • Read more about Applied Materials' insider trading history.
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AMAT Stock News Headlines

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AMAT Stock Analysis - Frequently Asked Questions

Applied Materials' stock was trading at $162.07 at the beginning of the year. Since then, AMAT stock has increased by 14.9% and is now trading at $186.18.
View the best growth stocks for 2024 here
.

Applied Materials, Inc. (NASDAQ:AMAT) announced its earnings results on Thursday, August, 15th. The manufacturing equipment provider reported $2.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.02 by $0.10. The business's quarterly revenue was up 5.5% compared to the same quarter last year.
Read the conference call transcript
.

Applied Materials' board approved a stock buyback plan on Monday, March 13th 2023, which permits the company to repurchase $10,000,000,000 in outstanding shares, according to EventVestor. This means that the company could purchase up to 9.7% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

The following companies are subsidiaries of Applied Materials: Perceptive Engineering, Think Silicon, Hitachi Kokusai Electric, Varian Semiconductor Equipment Associates Inc., Semitool Inc., Advent Solar, Baccini, and others.

Applied Materials' top institutional investors include Van ECK Associates Corp (0.79%), Swedbank AB (0.51%), Sumitomo Mitsui Trust Group Inc. (0.35%) and Impax Asset Management Group plc (0.31%). Insiders that own company stock include Prabu G Raja, Omkaram Nalamasu, Brice Hill, Timothy M Deane, Teri A Little, Thomas J Iannotti, Xun Chen and Gary E Dickerson.
View institutional ownership trends
.

Shares of AMAT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

Based on aggregate information from My MarketBeat watchlists, some other companies that Applied Materials investors own include IDEXX Laboratories (IDXX), Broadcom (AVGO), Tesla (TSLA), ASML (ASML), HubSpot (HUBS), CrowdStrike (CRWD) and Cadence Design Systems (CDNS).

Company Calendar

Last Earnings
8/15/2024
Ex-Dividend for 9/12 Dividend
8/22/2024
Dividend Payable
9/12/2024
Today
11/05/2024
Next Earnings (Confirmed)
11/14/2024
Ex-Dividend for 12/12 Dividend
11/21/2024
Dividend Payable
12/12/2024
Fiscal Year End
10/31/2025

Industry, Sector and Symbol

Industry
Semiconductors & related devices
Sub-Industry
Semiconductor Equipment
Current Symbol
NASDAQ:AMAT
CUSIP
03822210
CIK
6951
Employees
34,000
Year Founded
1967

Price Target and Rating

Average Stock Price Target
$229.14
High Stock Price Target
$280.00
Low Stock Price Target
$175.00
Potential Upside/Downside
+22.9%
Consensus Rating
Moderate Buy
Rating Score (0-4)
2.68
Research Coverage
22 Analysts

Profitability

Net Income
$6.86 billion
Pretax Margin
31.39%

Debt

Sales & Book Value

Annual Sales
$26.85 billion
Cash Flow
$8.86 per share
Book Value
$19.47 per share

Miscellaneous

Free Float
822,013,000
Market Cap
$153.72 billion
Optionable
Optionable
Beta
1.56

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This page (NASDAQ:AMAT) was last updated on 11/5/2024 by MarketBeat.com Staff
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