Stock Price & Analysis

Based on the analysis, AMAT is showing positive pre-market movement and strong fundamentals, making it a good buy. The stock's resilience amid broader market concerns and its position in the semiconductor industry support its positive outlook.

AMAT stock is predicted to reach $165-$235 in 2025, driven by improving semiconductor demand and strong analyst sentiment. The stock faces short-term volatility due to sector-wide earnings concerns but is expected to recover as AI and custom silicon trends strengthen. Analysts maintain a "Strong Buy" rating, with price targets reflecting confidence in its long-term growth.

The S1 support level for AMAT Stock is $143.46 ,The R1 resistant level for AMAT Stock is $155.62.

As of the end of day on 2025-04-02, the price of AMAT Stock was $145.05.

The target price for AMAT Stock according to analyst rating is 205.92, with the highest price target at 250.00 and the lowest at 164.00. Analysts have a Moderate Buy rating on AMAT Stock overall.

The market cap of AMAT is $118.3B.

Analysis and Insights

Applied Materials, Inc. (AMAT) appears to be undervalued based on its current valuation metrics and analyst sentiment.

Valuation Metrics:

• Price-to-Earnings (P/E) Ratio: AMAT's forward P/E of 24.44 is lower than its peers, indicating reasonable valuation relative to earnings expectations.
• EV/EBITDA: The enterprise value-to-EBITDA ratio of 17.67 suggests the stock is undervalued compared to industry averages.
• Price-to-Sales (P/S) Ratio: The P/S ratio of 5.61 is moderate, reflecting a balance between growth and value.
• Price-to-Book (P/B) Ratio: The P/B ratio of 8.15 indicates undervaluation relative to book value.
• Dividend Yield: The dividend yield of 0.86% provides a modest income stream while leaving room for growth.

Analyst Sentiment:

Analysts have a positive outlook on AMAT, with multiple "Strong Buy" ratings and price targets significantly above the current price. For example, Stifel raised its target to $235, implying 28% upside potential.

Technical Analysis:

The stock is currently trading near its Fibonacci support levels, suggesting it may be undervalued. While the MACD indicates bearish momentum, the RSI of 41 suggests the stock is not oversold.

Fundamental Strength:

AMAT has a strong track record of profitability and dividend growth, with earnings expected to rise 45.4% next year. Its dividend yield of 1.0% is sustainable and growing.

Conclusion:

Based on valuation metrics, analyst sentiment, and technical analysis, AMAT is not overvalued. It offers a compelling combination of growth potential and reasonable valuation, making it an attractive investment opportunity.

Applied Materials, Inc. is a materials engineering solutions provider. The Company provides manufacturing equipment, services and software to the semiconductor, display and related industries. Its segments include Semiconductor Systems, Applied Global Services (AGS), and Display and Adjacent Markets. Semiconductor Systems segment develops, manufactures and sells a range of manufacturing equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, remanufactured earlier generation equipment and factory automation software for semiconductor, display and other products. Display and Adjacent Markets segment is comprised of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for monitors, smart phones, and other consumer-oriented devices.

Price Prediction for AMAT Stock in 2030

The predicted price for Applied Materials (AMAT) stock in 2030 is $220. This forecast is based on strong demand for semiconductor manufacturing equipment driven by AI and the company's strategic investments in advanced technologies. Analysts remain optimistic about AMAT's long-term growth potential.

AMAT has a total of 34000 employees.