Latest news with #AppliedMaterials
Yahoo
18 hours ago
- Business
- Yahoo
1 Soaring Growth Stock to Buy Hand Over Fist Before It Is Too Late
Applied Materials stock is in rebound mode. Even better, it still trades at an attractive valuation. The semiconductor equipment supplier expects stronger growth in the future due to increased spending by chipmakers and foundries. Applied Materials stock could deliver terrific gains going forward thanks to favorable end-market developments. 10 stocks we like better than Applied Materials › Share prices of Applied Materials (NASDAQ: AMAT) 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. What's worth noting is that investors shrugged off Applied Materials' mixed fiscal 2025 second-quarter results (for the three months ended April 27), which were released on May 15. The semiconductor equipment supplier reported robust growth in sales and earnings for the quarter, but its top line was a tad lighter than expected. The company's outlook for the current quarter followed a similar pattern. However, savvy investors would do well to note that Applied Materials' results and guidance were resilient at a time when the tariff-fueled turmoil and the restrictions on sales of semiconductor equipment to China are turning out to be headwinds for the company. Let's take a look at the factors that could help Applied Materials stock maintain its momentum on the market. Applied Materials reported year-over-year growth of 7% in its revenue in the previous quarter, while its non-GAAP earnings per share (EPS) increased at a faster pace of 14%. A quarter of its revenue came from sales of semiconductor manufacturing equipment to China. For comparison, Applied Materials' top-line growth was flat in the same quarter last year, while its adjusted earnings increased at a much slower pace of 5%. Applied Materials got 43% of its revenue from Chinese customers in the year-ago period. So, the company's growth accelerated even though restrictions on sales of advanced chipmaking equipment to Chinese customers hurt its business in its largest market abroad. This can be attributed to the global growth in semiconductor demand owing to catalysts such as artificial intelligence (AI). Equity research firm Summit Insights Group predicts that the improvement in demand for advanced chips in the second half of 2025 and next year should allow Applied Materials to continue doing well even if its Chinese business remains negatively impacted. Applied Materials CEO Gary Dickerson's remarks on last month's earnings conference call suggest something similar: The impact of AI datacenter innovation and investments is apparent in the wafer fab equipment market, where there are significant shifts in the spending mix this year. We see investment in leading edge foundry-logic growing substantially in 2025, and we also expect spending for leading-edge DRAM to be up significantly. Large-scale AI infrastructure investments such as the $500 billion Stargate project and the multibillion-dollar investments by cloud-computing giants to bolster their AI capabilities are the reasons why foundries and chipmakers are focused on enhancing their manufacturing capacities. Foundry giant Taiwan Semiconductor Manufacturing (NYSE: TSM), for instance, is set to increase its capital expenditures (capex) by 38% at the midpoint of its forecast to $40 billion in 2025. The Taiwan-based company is on track to build nine fabrication plants this year. TSMC further points out that it will spend 70% of its capital spending on advanced process nodes. That's not surprising as almost three-fourths of the company's revenue comes from selling chips manufactured using advanced nodes that are 7-nanometer (nm) or smaller in size. Looking ahead, TSMC estimates that its revenue from sales of AI chips is likely to increase at an annual rate of mid-40% through 2029. So, it won't be surprising to see the company spending more money on shoring up the production capacity of advanced chips to meet the AI-fueled demand. The increase in capex by the likes of TSMC is expected to drive a 2% increase in global semiconductor equipment spending this year to $110 billion, followed by a much stronger increase of 18% in 2026. This should ideally lead to an acceleration in Applied Materials' growth as well, paving the way for more stock price upside. Analysts are forecasting a 10% increase in Applied Materials' earnings this fiscal year to $9.49 per share. This is expected to be followed by a smaller jump in fiscal 2026 before another year of double-digit growth in fiscal 2027. However, the sharp acceleration in global semiconductor equipment spending could allow Applied Materials to grow at a faster rate over the next couple of years. But even if the company's bottom line grows in line with consensus expectations and its earnings hit $11.17 per share after a couple of fiscal years (as per the chart above), its stock price could jump to $329 (based on the tech-laden Nasdaq-100 index's forward earnings multiple of 29). That points toward an 88% gain from current levels in the next three years. Applied Materials stock is now trading at just 18 times forward earnings, which is a nice discount to the Nasdaq-100 index, which serves as a proxy for tech stocks. However, the market could reward Applied Materials with a richer earnings multiple in the future if it can deliver stronger-than-expected earnings growth. That's why savvy investors may want to buy this semiconductor stock while it is still trading at an incredibly cheap valuation, as it has the ability to go on a terrific bull run going forward. Before you buy stock in Applied Materials, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Applied Materials wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. 1 Soaring Growth Stock to Buy Hand Over Fist Before It Is Too Late was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Morgan Stanley Upgrades Applied Materials (AMAT) Stock Rating, Lowers PT
Applied Materials, Inc. (NASDAQ:AMAT) is one of the 10 Best American Semiconductor Stocks to Buy Now. On June 5, Morgan Stanley analysts upgraded Applied Materials, Inc. (NASDAQ:AMAT) to 'Equal Weight' from 'Underweight' and set a new price target of $158, which is lower than the previous target of $162. Morgan Stanley's revenue and earnings per share estimates for Applied Materials, Inc. (NASDAQ:AMAT) for the fiscal year 2026 are 8% and 10% below the market consensus, respectively. Morgan Stanley analysts explained that they based the new price target on a 17 times multiple of the company's expected earnings per share for 2026, which is estimated to be $9.31. A technician in a clean room assembling a semiconductor chip using a microscope. The firm has a cautious view of the leading logic and DRAM markets. Morgan Stanley also adjusted their fiscal year 2025 forecasts for Applied Materials, Inc. (NASDAQ:AMAT). The firm expects the company to report $28.6 billion in revenue and earnings per share of $9.36. For fiscal year 2026, Morgan Stanley revised its estimates to $28.1 billion in revenue and $9.04 in earnings per share. Applied Materials, Inc. (NASDAQ:AMAT) is an American corporation that specializes in materials engineering solutions for the semiconductor and flat panel display industries. While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Applied Materials, CEA-Leti expand joint lab to drive innovation
Applied Materials (AMAT) and CEA-Leti announced the next phase of their longstanding collaboration to accelerate innovation in specialty semiconductors. Under a memorandum of understanding, MOU,, the organizations plan to expand their joint lab and develop materials engineering solutions to address emerging infrastructure challenges in AI data centers. The joint lab is focused on device innovations for chipmakers serving ICAPS markets. These specialty chips are used in a wide range of applications – from industrial automation to electric vehicles – and they play a critical role managing data and power distribution within data centers. Under the new arrangement, Applied and CEA-Leti plan to expand the lab with new equipment and capabilities that move beyond individual process steps to include full-flow development of specialty devices. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on AMAT: Disclaimer & DisclosureReport an Issue CrowdStrike and McDonald's downgraded: Wall Street's top analyst calls Morgan Stanley upgrades Applied Materials to Equal Weight on valuation Applied Materials upgraded to Equal Weight from Underweight at Morgan Stanley UnitedHealth, Matador, Air Canada, AutoZone, and Applied Materials: Trending by Analysts Applied Materials, Inc. Faces Financial Strain Amid Trade Policy Shifts and Tariff Challenges Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
5 days ago
- Business
- Mint
Trump officials weighed broader China tech restrictions ahead of trade talks
Commerce Department officials weighed new export limits on critical technology going to China ahead of recent trade talks in London, adding to the Trump administration's arsenal if tensions between Washington and Beijing escalate again. The Commerce Department unit overseeing export controls in recent weeks weighed tougher limits on semiconductors, including cutting off sales to China of a wider swath of chip-manufacturing equipment, people familiar with the matter said. Such a move would have covered equipment used to make everyday semiconductors, expanding beyond existing export limits on equipment for producing advanced chips. The decision could have roiled supply chains for chips needed to make everything from smartphones to cars, while threatening billions of dollars in sales for leading equipment companies such as Applied Materials, Lam Research and KLA. The restrictions were discussed as an option if trade talks didn't go well and are no longer actively being considered, a White House official said. The official declined to say whether they might still be an option down the road. In London last week, the U.S. and China agreed to reinstate a recent truce they had reached cutting sky-high tariffs. The detente involves U.S. access to Chinese rare-earth materials and allowing Chinese students to continue studying at U.S. universities. Even so, tensions continue. China is putting a six-month limit on the sales of rare earths to U.S. carmakers and manufacturers, giving Beijing leverage if the trade conflict flares up again, The Wall Street Journal has reported. Ahead of the London talks, the U.S. hit companies in industries from jet engines to chemicals with export limits. Restrictions on semiconductors have been a key issue in U.S.-China trade talks, including the recent discussions in London. Making chips requires specialized equipment to add thin layers of various materials to silicon wafers. Much of the equipment is made by companies in the U.S., the Netherlands and Japan, giving the West leverage. 'In the economic war with China, this is the most powerful weapon we've got," said Dmitri Alperovitch, co-founder of the Silverado Policy Accelerator think tank and a proponent of wider restrictions. 'If you're going to leverage this trump card, now is the time to do it." The second Trump administration has taken some fresh steps to hobble China's artificial-intelligence industry, following curbs put in place by the Biden administration. In one instance, Commerce's Bureau of Industry and Security is preparing measures to limit the sale of American technology to many subsidiaries and affiliates of Chinese companies subject to a trade blacklist. Administration officials aren't always of one mind on the issue, with national-security hawks advocating tougher measures while business-minded officials want to do deals and support sales by U.S. companies. On the issue of semiconductor-making equipment, the Biden administration considered broad restrictions but ultimately decided to focus on advanced chips, people familiar with the discussions said. Equipment companies have argued that tight restrictions without buy-in from other countries would limit the amount they can invest in research and development and benefit foreign competitors. China accounts for tens of billions of dollars in revenue for Western equipment companies. The country generated roughly 40% of the revenue for Applied Materials, Lam and KLA in their most recent fiscal years. Since 2022, the U.S. has used its semiconductor industry to hamstring China, an approach that has drawn criticism from industry executives such as Jensen Huang, chief executive of chip designer Nvidia, who argues the controls motivate China to innovate. The Trump administration has said it wants to share technology with allies while beating back China's advances. At a House Committee on Foreign Affairs hearing Thursday, Jeffrey Kessler, the head of Commerce's Bureau of Industry and Security, said the agency was reviewing 'products of strategic significance across the board." When Rep. Gregory Meeks (D., N.Y.) pressed Kessler about any additional action on the semiconductor industry with respect to China, Kessler said, 'I'm sure we will remain active in that space" and 'we need to make sure our controls remain effective." Tech companies have been caught up in a general pause in the approval of new export licenses for a range of products, including chips and chip-making equipment, said people in the industry. BIS has granted few export licenses since President Trump's inauguration while it reviews the process used to approve such licenses, they said. Export licenses cover many commercial items and dual-use items with potential military applications. They allow governments to review where such items are sold, to whom and for what purpose. Without fresh export licenses, U.S. companies would be unable to continue to sell products abroad when existing licenses expire, and foreign buyers might turn to manufacturers in other countries for substitutes, industry analysts say. Write to Amrith Ramkumar at and Liza Lin at
Yahoo
6 days ago
- Business
- Yahoo
Web Coating Equipment Market to USD 3.64 Billion by 2032, Owing to the Surge in Sustainable, Smart, and Customizable Industrial Coatings
Demand for Web Coating Equipment is growing at a mean double-digit pace, largely fueled by a shift towards sustainable high-performance and smart coatings from manufacturers and more automation, waste reduction, and customization across packaging, electronics, and advanced material values, reports a newly compiled study. Austin, June 16, 2025 (GLOBE NEWSWIRE) -- The Web Coating Equipment Market size was valued at USD 2.87 billion in 2024 and is expected to reach USD 3.64 billion by 2032, growing at a CAGR of 3.05% over the forecast period (2025–2032). The Web Coating Equipment Market is driven by growing sustainability demands, automated and robotic packaging adoption, and smart packaging. The manufacturers are promoting sustainable water-based and solvent-free (or low-solvent) coatings along with Industry 4.0 digitalization and IoT to bring in efficiency and emission control. The U.S. web coating equipment market is anticipated to grow steadily from USD 0.34 billion in 2024 to USD 0.43 billion by 2032, with a CAGR of 3.09%. Driven by rising environmental regulation, encouraging the development of waterborne coatings, continued innovation in electronics manufacturing, and the rise and development of smart PDF Sample of Web Coating Equipment Market @ Key Players: Comexi Glenro Inc. Applied Materials, Inc. Davis-Standard, LLC KROENERT GmbH & Co KG Kampf Schneid Faustel Bobst Lamina System AB Ferag AG Web Coating Equipment Market Report Scope: Report Attributes Details Market Size in 2024 USD 2.87 Billion Market Size by 2032 USD 3.64 Billion CAGR CAGR of 3.05% From 2025 to 2032 Base Year 2024 Forecast Period 2025-2032 Historical Data 2021-2023 Report Scope & Coverage Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook Key Drivers • Rising Demand for High-Performance Coatings Fuels Growth in Web Coating Technologies. If You Need Any Customization on Web Coating Equipment Market Report, Inquire Now @ Roll-to-Roll Coating and Flexible Electronics Lead Web Coating Equipment Market with High Precision and Innovation Demand By Type Roll to Roll coating holds the dominant position in the Web Coating Equipment Market, capturing a 32.02% share in 2024. It produces high-speed and high-precision coating, which is why it is suitable for large-scale industrial applications. This type of coating process offers high uniformity over large substrates and is still widely used in packaging, labeling, and flexible materials fabrication. This model helps it to maintain continuous operation with minimum downtime, thus enabling the efficiency that is crucial for mass production. Furthermore, its ability to use a wide range of coating materials, such as UV-curable and water-based formulations, has made it the technology of choice for manufacturers adjusting to changing environmental regulations. By Application Flexible Electronics emerged as the leading application segment in the Web Coating Equipment Market in 2024, accounting for 34% of the market share. This growth is largely attributed to the growing need for lightweight, flexible, and durable electronic components, including OLED screens, flexible solar panels, wearable sensors, and foldable smartphones. That means deposition of highly uniform, ultra-thin layers with very low defect rates, and the coating equipment specifically designed for this segment should deliver these requirements. As advancement in advanced electronics and energy-saving devices builds up, the manufacturers are relying more and more on precision, scalable web coating technologies to maintain competitive performance levels and production scalability among other features of a competitive electronics environment. Asia-Pacific Dominates with 45% Market Share, While Europe Emerges as the Fastest-Growing Region in the Web Coating Equipment Market The Asia Pacific region led the market with over 45% share in 2024. Due to the large industrial ecosystem, it powers demands in electronics, packaging, and even the energy sectors, which explains this dominance. Increasing packaged goods consumption, combined with more stringent quality and safety standards, has triggered rapid equipment adoption in China and India. Korea and Taiwan's major household appliance, automotive, and electronics hubs are calling for highly precise coating technology. As sustainability becomes more important in the region, the shift of companies from solvent-based to water-based and UV-curable coating has led to most costs from newly installed eco-friendly coating lines. Europe, meanwhile, is the fastest-growing market. The greater focus on environmental performance and regulatory compliance is encouraging companies to switch to low-VOC coatings and invest in automated systems to minimize waste. Sustainability-oriented projects and investments like the EU Green Deal are prompting advancements in coating infrastructure, particularly in Germany, France, and Scandinavia. This surge is supported by the demand for slot-die and curtain-coating systems, which guarantee consistency in coating thickness with minimal waste, by aligned European green mandates and carbon-neutral objectives. Table of Contents – Major Key Points 1. Introduction 2. Executive Summary 3. Research Methodology 4. Market Dynamics Impact Analysis 5. Statistical Insights and Trends Reporting 6. Competitive Landscape 7. Web Coating Equipment Market Segmentation, By Type 8. Web Coating Equipment Market Segmentation, By Application 9. Web Coating Equipment Market Segmentation By Form 10. Regional Analysis 11. Company Profiles 12. Use Cases and Best Practice 13. ConclusionBuy Full Research Report on Web Coating Equipment Market 2025-2032 @ About Us: SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world. CONTACT: Jagney Dave - Vice President of Client Engagement Phone: +1-315 636 4242 (US) | +44- 20 3290 5010 (UK)Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
