AMAT Stock Recent News

Applied Materials posts its highest gross margin in over two decades as demand surges for AI and HPC chipmaking tools.

I track 50 high-quality dividend growth stocks to identify opportune investments, updating valuation ratings daily to focus on attractive opportunities. In this turbulent year, my investable universe kept up with SPY and outperformed SCHD year-to-date, with a gain of 5.63% compared to 5.72% and -2.13%. This month, 18 stocks had valuation rating changes; 5 were upgrades, including Paychex with an attractive expected return.

The Investment Committee give you their top stocks to watch for the second half.

Applied Materials' EPIC Center launches in 2026 to speed chip innovation through deep customer integration and advanced R&D focus.

These days, it's hard to find an artificial intelligence (AI) stock trading at a cheap price. Nvidia has a price-to-earnings ratio (P/E) approaching 50.

Applied Materials is well positioned to benefit from AI-driven semiconductor megatrends, with WFE market growth expected to accelerate due to larger, more complex chips. Sticky, recurring revenues from Applied Global Services reduce cyclicality and provide stable cash flows, supporting a more predictable business model. Strong capital return policy, including growing dividends and share buybacks, underscores management's confidence and shareholder alignment.

Recently, Zacks.com users have been paying close attention to Applied Materials (AMAT). This makes it worthwhile to examine what the stock has in store.

Share prices of Applied Materials (AMAT -2.02%) have jumped impressively from the 52-week lows they hit just over two months ago, gaining 31% in a short time on the back of the broader rally in the tech-laden Nasdaq Composite index that has clocked solid gains of 25% during the same period.

Applied Materials offers strong fundamentals, scale, and diversified exposure to the semiconductor industry, supporting a buy rating despite current rich valuations. Key risks include industry cyclicality and significant China exposure, but AMAT's broad portfolio and customer relationships help mitigate these uncertainties. Technical and valuation analysis suggests up to 50% upside by 2027, with reasonable EPS growth and potential for multiple expansion even without extreme optimism.

Applied Materials delivered above-average revenue growth, with robust performance in its core Semiconductor Systems segment and healthy cash flows. Ongoing investments in new technologies are driving growth, and the company is returning significant capital to shareholders via buybacks and dividends. Despite export concerns, the stock appears undervalued with a below-average P/S ratio, presenting a buying opportunity as fundamentals remain strong.