DailyIQ
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Sector:TechnologyAll sectors
Last updated 6 minutes ago

AMAT·Applied Materials, Inc.

$.
+. (+.%)
After Hours
High
$609.22
Open
$577.85
Market Cap
462.73B
52W High
$739.67
Low
$569.00
P. Close
$602.27
P/E
54.39
52W Low
$154.47
Fwd P/E
176.51
DailyIQ Est.
$661.82
Technical Score (1D)
64
BUY
News Sentiment
63
BULLISH
Applied Materials was recently dropped from the Russell 1000 Value‑Defensive and Russell 3000 Value indices, a move that reclassifies the firm from a value to a growth play as its AI‑driven wafer‑fab equipment and advanced packaging business expands. The reclassification signals that investors now view AMAT’s risk‑return profile as more growth‑oriented, which could prompt portfolio managers to shift capital away from value‑focused funds and toward growth‑heavy portfolios. Traders should watch for any future index re‑inclusion or changes in allocation that could affect short‑term liquidity and demand for the stock. In parallel, Needham and Stifel have both lifted their price targets to $740 and $650 respectively, citing robust order backlogs, margin expansion prospects, and continued demand for EUV lithography and advanced manufacturing tools. The upgraded targets reinforce a bullish outlook that could buoy the stock’s valuation multiples in the next 1–10 trading days. Watch for the Q2 earnings release and any announcements on new EUV tool deployments, as these will confirm whether revenue growth and margin expansion materialize. A separate analysis notes that AMAT has outperformed its broader technology sector year‑to‑date, underscoring its resilience amid market volatility. This outperformance suggests that earnings momentum is likely to persist, but it remains sensitive to shifts in semiconductor demand and export restrictions. Therefore, keep an eye on the upcoming earnings guidance and any changes in customer capital‑expenditure plans that could quickly alter the company’s outlook.
Earnings Summary
Applied Materials, Inc. (AMAT) is a global provider of materials engineering solutions, specializing in equipment, services, and software for the semiconductor industry. The company operates through its Semiconductor Systems and Applied Global Services segments, delivering capital equipment and comprehensive solutions that enhance manufacturing productivity for wafer and chip manufacturers worldwide. In the last two quarters, AMAT reported Q1 2026 revenue of $7.012 billion and Q2 2026 revenue of $7.91 billion, up $212 million and $608 million respectively from Q3 2025 and Q1 2025, reflecting an acceleration in top‑line growth. EPS rose from $2.17 in Q3 2025 to $2.38 in Q1 2026 (+$0.21) and to $2.86 in Q2 2026 (+$0.47), with the company beating consensus estimates in five of the six most recent quarters and missing only in Q1 2026. Historically, AMAT has maintained a strong earnings trajectory, posting YoY revenue growth in Q2 2026 (+8.3%) and EPS growth of +15.3%, while Q1 2026 revenue dipped slightly YoY, illustrating a pattern of robust earnings performance even when top‑line growth moderates. Recent market commentary highlights the impact of AI‑driven demand, with Meta’s in‑house chip development and Micron’s $250 billion investment bolstering expectations for higher‑margin lithography and deposition systems; the company’s guidance for more than 50 % growth in its packaging segment by 2026 underscores its strategic positioning in high‑bandwidth memory and 3‑D chiplet stacking. Investors should watch for the upcoming earnings release to assess updated capital‑expenditure guidance, order‑flow dynamics, and the pace of AI‑related equipment orders, as well as any progress on the SENZ integrated visual platform partnership that could diversify revenue beyond core semiconductor equipment. Key will be how the company translates projected packaging growth into revenue and whether macro‑economic factors such as interest‑rate moves or supply‑chain disruptions influence customer spending.

EPS

EstBeatMiss
$1.90$2.32$2.74$3.16$3.58Q1'25Q2'25Q3'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$3.39 - -
Q2'26$2.68$2.86+6.6%
Q1'26$2.57$2.38-7.5%
Q3'25$2.09$2.17+3.6%
Q2'25$2.36$2.48+5.1%
Q1'25$2.31$2.39+3.4%

Revenue

EstBeatMiss
$6.4B$7.2B$8.0B$8.7B$9.5BQ1'25Q2'25Q3'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$9.2B - -
Q2'26$7.8B$7.9B+1.1%
Q1'26$7.5B$7.0B-6.4%
Q3'25 - $6.8B -
Q2'25 - $7.3B -
Q1'25 - $7.1B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

AMAT Stock Snapshot

AMAT is currently trading at $604.41, giving Applied Materials, Inc. a market cap of 462.73B and a P/E ratio of 54.4. Today's range spans $569.00–$609.22, with shares opening at $577.85 and moving up $2.14 (0.4%) from the prior close. DailyIQ's technical score sits at 64/100 (HOLD) with a news sentiment reading of 63/100.

Over the past year AMAT has traded between $154.47 and $739.67 - the current price is +291.3% off the 52-week low and -18.3% from the high. 47 analysts cover the stock with a Buy consensus and a mean 12-month target of $602.77 (range $358.00–$900.00), implying downside of -0.3%.

A HOLD read (64/100) for AMAT at $604.41 (in the upper portion of its 52-week range) with bullish sentiment (63/100) tells the story of a large-cap Technology stock between identifiable trends. The current P/E ratio stands at 54.4. The 462.73B market cap keeps institutional interest alive; the 52-week range of $154.47–$739.67 keeps the trade interesting. HOLD signals here aren't an endpoint - they're a setup phase waiting for the right trigger.

In neutral phases, large-cap Technology names like AMAT are often where sector rotation debates play out quietly — at 462.73B in capitalization, the stock receives incremental allocation from funds reducing mega-cap exposure without the volatility of a small-cap entry. The 64/100 (HOLD) and bullish sentiment (63/100) at $604.41 (in the upper portion of its 52-week range) describe a stock that is being considered rather than avoided.