Stock Price & Analysis

Based on the recent data and news, here's a comprehensive analysis of AMAT stock:

Recent Price Action and Technical Analysis

The stock has experienced significant selling pressure, dropping 8.18% to $169.20 on Friday. This decline was primarily triggered by the company's Q1 FY2025 earnings report and guidance concerns.

Fundamental Analysis

Q1 FY2025 Results:

• Revenue: $7.166 billion (+7% YoY)
• Net Income: $1.185 billion (-41% YoY)

Key Challenges

1. Export Control Impact:

• $400 million revenue headwind for fiscal 2025
• Half of the impact expected in Q2
• China exposure expected to drop to ~25% this quarter

2. Q2 FY2025 Guidance:

• Revenue: $6.70-7.50 billion (below consensus of $7.21 billion)
• Adjusted EPS: $2.12-2.48 (below consensus of $2.30)

Analyst Perspectives

Recent analyst ratings:

• Needham: Buy rating, PT lowered from $200 to $195
• Goldman Sachs: Buy rating, PT raised from $202 to $217
• KeyBanc: Overweight rating, PT $225

Positive Factors

1. Long-term Growth Drivers:

• Critical role in enabling technology transitions
• Strong positioning in deposition, etch, and materials science
• Growing opportunities in AI and HPC scaling

2. Warren Buffett Strategy Rating:

• 100% rating based on Patient Investor model
• Strong fundamentals and reasonable valuation
• Long-term predictable profitability

Recommendation

While the short-term headwinds from export controls and China exposure are concerning, AMAT's fundamental business remains strong with solid long-term growth drivers. The current pullback presents a potential buying opportunity for long-term investors, especially given the company's critical role in semiconductor manufacturing and AI/HPC development.

Entry Strategy:

• Consider initiating positions around current levels ($171-172)
• Use dollar-cost averaging approach
• Set stop-loss around $165 (recent support level)

Based on the provided data and market analysis, here is the price prediction for AMAT stock in 2025:

AMAT is expected to reach $211-215 by end of 2025, representing a 22-25% upside from current levels. This projection is supported by several key factors:

1. Strong analyst consensus with a mean price target of $211.41 and a street-high target of $250. The recent upgrade by KeyBanc to "Buy" with a $225 price target reinforces this bullish outlook.

2. Technical analysis shows AMAT is currently trading below its 200-day moving average of $195.86, suggesting potential for mean reversion upside. The stock has formed a solid support level around $170-172 range.

3. Fundamental growth expectations remain robust with projected earnings growth of 8.4% year-over-year to $9.38 per share in fiscal 2025. The company has consistently beaten earnings estimates in the past four quarters, demonstrating strong execution.

The S1 support level for AMAT Stock is $166.85 ,The R1 resistant level for AMAT Stock is $182.18.

As of the end of day on 2025-02-26, the price of AMAT Stock was $167.67.

The target price for AMAT Stock according to analyst rating is 206.31, 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 $134.5B.

Based on the provided data and recent market activity, here's a comprehensive analysis of AMAT's valuation:

Technical Analysis

The stock is showing bearish signals in the short term:

• RSI-14 at 43.76 indicates neutral but weakening momentum
• MACD turned negative (-1.02) with bearish divergence
• Trading below both 200-day SMA ($195.86) and 250-day SMA ($197.18)
• Currently at $171.98, down 2.29% in the last session

Fundamental Valuation

Current valuation metrics compared to historical levels:

• Forward P/E: 16.18x (2023) vs 12.06x (2022)
• EV/EBITDA: 13.29x (2023) vs 9.73x (2022)
• P/S: 4.18x (2023) vs 3.05x (2022)
• P/B: 6.69x (2023) vs 6.21x (2022)

The stock appears moderately overvalued compared to its historical averages, with multiples expanding across all key metrics.

Recent Performance & Catalysts

• Stock has pulled back significantly from its 52-week high near $255
• Q1 FY2025 earnings reported revenue of $7.17B, meeting guidance
• Facing $400M headwind from trade restrictions in FY2025
• Strong position in high-bandwidth memory (HBM) segment with $700M+ in packaging revenues

Conclusion AMAT appears overvalued at current levels due to:

1. Expanding valuation multiples across all metrics
2. Technical indicators showing bearish momentum
3. Trade restriction headwinds impacting near-term growth
4. Premium valuation compared to historical averages
5. Recent pullback suggesting market repricing of growth expectations

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.

Based on the provided data and market analysis, here is the price prediction for AMAT stock by 2030:

AMAT is projected to reach $320-350 by 2030, driven by continued semiconductor industry growth and AI chip demand expansion. The stock's strong fundamentals, consistent earnings beats, and analyst consensus showing 15.7% upside potential in the near term support this long-term target.

The company's dominant position in semiconductor manufacturing equipment and growing services segment, combined with projected 8.4% earnings growth in fiscal 2025, suggests sustained momentum toward this price range.

Recent analyst actions reinforce this outlook, with multiple firms maintaining "Strong Buy" ratings and price targets in the $200-250 range even amid near-term market volatility.

AMAT has a total of 34000 employees.