Applied Materials Acquires ASMPT's NEXX Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 04 2026
0mins
Applied Materials announced it has entered into a definitive agreement with ASMPT Limited to acquire its NEXX business. "The addition of the NEXX team and products will broaden Applied's portfolio of panel-level advanced packaging technologies which are designed to enable chipmakers and systems companies to build larger-body AI accelerators for higher energy-efficient performance," the company said.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 650.910
Low
190.00
Averages
288.05
High
425.00
Current: 650.910
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates through two segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including services, spares and factory automation software for semiconductor and other products. Its products include personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Applied Materials Stock Drops Nearly 10% Amid Market Trends
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- Monthly Performance: Despite a 47.54% increase in stock price over the past month, AMAT has not been able to withstand the overall 2.58% loss in the Computer and Technology sector, reflecting intensified competition and shifting market sentiment.
- Earnings Expectations: The company is scheduled to release its earnings report on August 13, 2026, with an anticipated EPS of $3.35, representing a 35.08% increase year-over-year, and revenue expected to reach $8.98 billion, up 23% from the prior year, showcasing strong profitability and market demand.
- Analyst Ratings: Currently, Applied Materials holds a Zacks Rank of #2 (Buy), reflecting analyst optimism regarding its future profitability, with a 0.71% upward revision in EPS estimates over the past month, indicating growing market confidence in its performance.
See More
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- Mixed Market Performance: The S&P 500 index is up 0.10% and the Dow Jones Industrial Average is up 0.85%, while the Nasdaq 100 index is down 0.92%, reflecting cautious sentiment towards tech stocks, particularly amid ongoing weakness in chipmakers and AI infrastructure stocks.
- International Market Dynamics: Overseas stock markets are generally rising, with the Euro Stoxx 50 reaching a new record high, indicating global investor optimism about economic recovery, which may provide support for the US market.
- Oil Price Fluctuations: WTI crude oil prices have fallen over 1% to a fresh 4.25-month low due to increased global supplies, with UAE ramping up shipments by 30% in June, which could impact the performance of energy-related stocks.
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- Strong Financial Performance: In its fiscal 2026 second quarter ending April 26, Applied Materials achieved an 11% year-over-year growth, with semiconductor revenue reaching $5.965 billion, accounting for 75% of total revenue, demonstrating its robust market position.
- Future Growth Expectations: The company anticipates at least 30% revenue growth for its semiconductor business in calendar 2026, indicating significant revenue acceleration in upcoming quarters, despite a modest 10.4% growth rate in the second quarter.
- Valuation Challenges: Although Applied Materials' P/E ratio has surged from the mid-teens last year to over 50 currently, investors must consider whether the company can achieve 40% to 50% revenue growth in future quarters to sustain its elevated valuation.
See More
Applied Materials Forecasts 30% Revenue Growth in 2026
- Revenue Growth Outlook: Applied Materials anticipates a 30% revenue growth for its semiconductor business in 2026, indicating significant acceleration in revenue driven by long-term partnerships with clients like TSMC, Micron, and SK Hynix, thereby reinforcing its leadership in the semiconductor equipment market.
- Strong Financial Performance: In the second quarter of fiscal 2026, Applied Materials reported total revenue of $7.91 billion, with the semiconductor segment contributing $5.965 billion, accounting for 75% of total revenue, showcasing robust performance and future growth potential in this segment.
- High Profit Margins Maintained: The company achieved a net profit margin of 35.5% in the most recent quarter, suggesting that as revenue increases, net income will also rise significantly, enhancing investor confidence in its future financial health.
- Increased Market Attention: While the revenue growth forecast for 2026 has attracted investor interest, Applied Materials' P/E ratio has surged from the mid-teens last year to over 50, reflecting high market expectations for its future performance, but also indicating potential valuation risks at current levels.
See More
Burry's First Short on Caterpillar Causes Nearly 7% Drop
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- Short Position Motivation: Burry's short at $1,060.98 reflects his pessimistic outlook on Caterpillar's future performance, particularly after a more than 150% rise over the past 12 months, raising questions about the stock's fair value.
- Industry Impact: Burry's shorting extends beyond Caterpillar to include Nvidia, Applied Materials, and the iShares Semiconductor ETF, highlighting his concerns about the overall valuation of AI-related stocks, which could trigger broader market corrections.
- Market Trends: With the semiconductor index surging 88% in Q2, Burry pointed out its overvaluation and significant deviation from the 200-day moving average, suggesting that AI-linked stocks may face correction risks, impacting investor confidence.
See More
US Stocks Close Lower with Mixed Tech Performance
- Market Decline: On Wednesday, the S&P 500 fell by 0.22%, the Dow Jones Industrial Average dipped by 0.03%, and the Nasdaq 100 dropped by 1.54%, indicating a market pullback after reaching a one-week high, particularly driven by sell-offs in chipmakers and AI infrastructure stocks.
- Economic Data Impact: The June ADP employment change rose by only 98,000, falling short of the expected 120,000, while the ISM manufacturing index decreased from 53.9 to 53.3, highlighting signs of economic slowdown that further pressured the market.
- Mixed Tech Performance: Despite strong performances from the Magnificent Seven tech stocks, with Meta Platforms rising over 8%, semiconductor stocks faced significant declines, as the iShares Semiconductor ETF fell more than 6%, reflecting a divergence in market confidence towards technology stocks.
- Oil Prices and Inflation Expectations: WTI crude oil prices fell by more than 1%, reaching a 4.25-month low, as positive developments in US-Iran negotiations eased market tensions, potentially influencing future inflation expectations and the Federal Reserve's monetary policy.
See More
Applied Materials Stock Drops Nearly 10% Amid Market Trends
- Stock Volatility: Applied Materials (AMAT) closed at $650.91, marking a 9.97% decline from the previous day, significantly underperforming the S&P 500's 0.22% loss, indicating market concerns about its future performance.
- Monthly Performance: Despite a 47.54% increase in stock price over the past month, AMAT has not been able to withstand the overall 2.58% loss in the Computer and Technology sector, reflecting intensified competition and shifting market sentiment.
- Earnings Expectations: The company is scheduled to release its earnings report on August 13, 2026, with an anticipated EPS of $3.35, representing a 35.08% increase year-over-year, and revenue expected to reach $8.98 billion, up 23% from the prior year, showcasing strong profitability and market demand.
- Analyst Ratings: Currently, Applied Materials holds a Zacks Rank of #2 (Buy), reflecting analyst optimism regarding its future profitability, with a 0.71% upward revision in EPS estimates over the past month, indicating growing market confidence in its performance.
See More
Mixed Performance in US Stocks as Nasdaq Faces Pressure
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, with May's figures revised down to 129,000, indicating a slowdown in the labor market that could influence the Fed's interest rate decisions and suppress stock market performance.
- Mixed Market Performance: The S&P 500 index is up 0.10% and the Dow Jones Industrial Average is up 0.85%, while the Nasdaq 100 index is down 0.92%, reflecting cautious sentiment towards tech stocks, particularly amid ongoing weakness in chipmakers and AI infrastructure stocks.
- International Market Dynamics: Overseas stock markets are generally rising, with the Euro Stoxx 50 reaching a new record high, indicating global investor optimism about economic recovery, which may provide support for the US market.
- Oil Price Fluctuations: WTI crude oil prices have fallen over 1% to a fresh 4.25-month low due to increased global supplies, with UAE ramping up shipments by 30% in June, which could impact the performance of energy-related stocks.
See More
Applied Materials: Analyzing Future Growth Potential
- Customer Partnerships: Applied Materials' long-standing collaborations with Taiwan Semiconductor, Micron, and SK Hynix suggest accelerated revenue growth ahead, particularly as demand for semiconductor equipment continues to rise.
- Strong Financial Performance: In its fiscal 2026 second quarter ending April 26, Applied Materials achieved an 11% year-over-year growth, with semiconductor revenue reaching $5.965 billion, accounting for 75% of total revenue, demonstrating its robust market position.
- Future Growth Expectations: The company anticipates at least 30% revenue growth for its semiconductor business in calendar 2026, indicating significant revenue acceleration in upcoming quarters, despite a modest 10.4% growth rate in the second quarter.
- Valuation Challenges: Although Applied Materials' P/E ratio has surged from the mid-teens last year to over 50 currently, investors must consider whether the company can achieve 40% to 50% revenue growth in future quarters to sustain its elevated valuation.
See More
Applied Materials Forecasts 30% Revenue Growth in 2026
- Revenue Growth Outlook: Applied Materials anticipates a 30% revenue growth for its semiconductor business in 2026, indicating significant acceleration in revenue driven by long-term partnerships with clients like TSMC, Micron, and SK Hynix, thereby reinforcing its leadership in the semiconductor equipment market.
- Strong Financial Performance: In the second quarter of fiscal 2026, Applied Materials reported total revenue of $7.91 billion, with the semiconductor segment contributing $5.965 billion, accounting for 75% of total revenue, showcasing robust performance and future growth potential in this segment.
- High Profit Margins Maintained: The company achieved a net profit margin of 35.5% in the most recent quarter, suggesting that as revenue increases, net income will also rise significantly, enhancing investor confidence in its future financial health.
- Increased Market Attention: While the revenue growth forecast for 2026 has attracted investor interest, Applied Materials' P/E ratio has surged from the mid-teens last year to over 50, reflecting high market expectations for its future performance, but also indicating potential valuation risks at current levels.
See More
Burry's First Short on Caterpillar Causes Nearly 7% Drop
- Stock Pullback: Caterpillar (CAT) shares fell nearly 7% to close at $986.92 after Michael Burry's first short position announcement, retreating from an all-time high of $1,064.90, indicating increasing market concerns over its valuation.
- Short Position Motivation: Burry's short at $1,060.98 reflects his pessimistic outlook on Caterpillar's future performance, particularly after a more than 150% rise over the past 12 months, raising questions about the stock's fair value.
- Industry Impact: Burry's shorting extends beyond Caterpillar to include Nvidia, Applied Materials, and the iShares Semiconductor ETF, highlighting his concerns about the overall valuation of AI-related stocks, which could trigger broader market corrections.
- Market Trends: With the semiconductor index surging 88% in Q2, Burry pointed out its overvaluation and significant deviation from the 200-day moving average, suggesting that AI-linked stocks may face correction risks, impacting investor confidence.
See More
US Stocks Close Lower with Mixed Tech Performance
- Market Decline: On Wednesday, the S&P 500 fell by 0.22%, the Dow Jones Industrial Average dipped by 0.03%, and the Nasdaq 100 dropped by 1.54%, indicating a market pullback after reaching a one-week high, particularly driven by sell-offs in chipmakers and AI infrastructure stocks.
- Economic Data Impact: The June ADP employment change rose by only 98,000, falling short of the expected 120,000, while the ISM manufacturing index decreased from 53.9 to 53.3, highlighting signs of economic slowdown that further pressured the market.
- Mixed Tech Performance: Despite strong performances from the Magnificent Seven tech stocks, with Meta Platforms rising over 8%, semiconductor stocks faced significant declines, as the iShares Semiconductor ETF fell more than 6%, reflecting a divergence in market confidence towards technology stocks.
- Oil Prices and Inflation Expectations: WTI crude oil prices fell by more than 1%, reaching a 4.25-month low, as positive developments in US-Iran negotiations eased market tensions, potentially influencing future inflation expectations and the Federal Reserve's monetary policy.
See More
