Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company was incorporated in 1967 and is headquartered in Santa Clara, California.

Applied Materials, Inc.

Applied Materials’ AMAT display and adjacent segment has experienced rapid growth in the past two quarters. In the third quarter of fiscal 2025, the display and adjacent segment grew 4.8% year over year, while it jumped 44.7% year over year in the previous quarter.
The non-GAAP operating margin of this segment was 23.6%. This improvement is on the back of expanding adoption of organic light emitting diodes (OLED) screens in consumer devices. As the demand for advanced televisions, high-resolution displays for smartphones, laptops, monitors and tablets keeps pouring in, AMAT’s display segment will keep gaining traction.
Advanced form factors like thin, light, curved and flexible displays, and new use cases like augmented and virtual reality will also push AMAT’s display segment. AMAT expects its fourth-quarter 2025 display and adjacent revenues to come at $350 million, indicating a significant 66% year-over-year growth.
This growth is supported by Applied Materials’ MAX OLED technology, which will enable it to create large OLED screens known for their superior brightness, flexibility, and durability on much larger glass panels. The technology uses a maskless pixel-deposition process that enhances brightness up to threefold, resolution up to 2.5 times, while keeping the energy use down by more than 30%, all the while increasing the display lifespan up to five times.
How Competitors Fare Against AMAT Stock
Companies like Universal Display Corporation OLED and Kopin Corporation KOPN are two large players in the OLED market that develop phosphorescent OLED technology, micro-OLED displays and hold a vast portfolio of OLED-related patents.
Universal Display Corporation's strong patent portfolio has helped the company acquire several large customers, creating significant licensing revenues. Universal Display Corporation’s customers like Samsung, LG Display, BOE Technology, Visionox and Tianma have huge market share, which drives volumes.
Kopin Corporation specializes in ultra-high-brightness microdisplays for AR/VR, defense, enterprise, and industrial applications. While neither Universal Display Corporation nor Kopin Corporation directly competes with AMAT in equipment manufacturing, they hold patents for the underlying technology, making their customers direct competitors to AMAT.
AMAT’s Price Performance, Valuation and Estimates
Shares of Applied Materials have declined 1.8% year to date compared with the Electronics - Semiconductors industry’s growth of 14.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 4.27X, lower than the industry’s average of 8.5X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2025 and 2026 earnings implies year-over-year growth of 8.32% and 1.54%, respectively. The estimates for fiscal 2026 and 2027 have been revised downward in the past seven days.
Image Source: Zacks Investment Research
Applied Materials currently carries a Zacks Rank #4 (Sell).
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AMAT's Display Revenues Rebound: Is it a Sign of Stability?

The S&P 500 Index ($SPX) (SPY) today is down by -1.01%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.75%. September E-mini S&P futures (ESU25) are down -1.06%, and September E-mini Nasdaq futures (NQU25) are down -1.80%.
Stock indexes today have extended Tuesday’s losses, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 2-week low. The weakness in the Magnificent Seven technology companies and a selloff in chip stocks are weighing on the overall market. Also, disappointing corporate news is negative for stocks, with Target down more than -7% after forecasting a bigger-than-expected decline in full-year sales. Estee Lauder is down more than -5% after forecasting weaker-than-expected 2026 EPS.
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US MBA mortgage applications fell -1.4% in the week ended August 15, with the purchase mortgage sub-index up +0.1% and the refinancing sub-index down -3.1%. The average 30-year fixed rate mortgage rose +1 bp to 6.68% from 6.67% in the prior week.
Diplomatic talks over the war in Ukraine continue to make headway. President Trump is pushing for a summit between Presidents Putin and Zelenskiy soon, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. Later today, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000, and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve’s annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 55% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.22%. China’s Shanghai Composite climbed to a new 10-year high and closed up +1.04%. Japan’s Nikkei Stock 225 closed down -1.51%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +6 ticks, and the 10-year T-note yield is down -2.5 bp to 4.281%. Sep T-notes are modestly higher today, supported by weakness in equity markets. Also, strength in European government bonds is providing carryover support to T-notes. T-notes remained higher after the Wall Street Journal reported that President Trump is considering firing Fed Governor Lisa Cook over allegations that she committed mortgage fraud. If Cook is fired or resigns, Mr. Trump could appoint another Fed Governor who favors his lower interest rate policies.
Supply pressures are limiting gains in T-notes as the Treasury will auction $16 billion of 20-year T-bonds later today. Also, concerns that last week’s bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month’s FOMC meeting are weighing on T-notes.
European government bond yields today are moving lower. The 10-year German bund yield is down -3.4 bp to 2.716%. The 10-year UK gilt yield is down -6.0 bp to 4.680%.
ECB President Lagarde said the Eurozone economy is likely to see slower growth this quarter, with questions over global trade remaining despite recent trade deals with the US reducing uncertainty.
UK Jul CPI rose +3.8% y/y, stronger than expectations of +3.7% y/y and the fastest pace of increase in 1.5 years. Jul core CPI also rose +3.8% y/y, stronger than expectations of +3.7% y/y.
Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks are under pressure today, weighing on the broader market. Tesla (TSLA) is down more than -4% and Nvidia (NVDA) is down more than -3%. Also, Meta Platforms (META), Alphabet (GOOGL), and Amazon (AMZN) are down more than -2%, and Apple (AAPL) is down more than -1%. Microsoft (MSFT) is down -0.33%.
Weakness in chip stocks is a drag on the overall market. Intel (INTC) is down more than -7% and Micron Technology (MU) is down more than -6%. Also, Advanced Micro Devices (AMD), ARM Holdings Plc (ARM), and Marvell Technology (MRVL) are down more than -4%. In addition, Broadcom (AVGO) is down more than -3%, and Lam Research (LRCX), Applied Materials (AMAT), ON Semiconductor (ON), and GlobalFoundries (GFS) are down more than -2%.
James Hardie Industries Plc (JHX) is down more than -36% after reporting its Q2 operating profit sank -29% y/y and said difficult economic conditions continue to weigh on homebuyers after recording the slowest spring season in more than twelve years.
La-Z-Boy (LZB) is down more than -13% after reporting Q1 comparable sales fell -4% y/y versus -3% y/y, and forecast Q2 sales of $510 million-$530 million, the midpoint below the consensus of $528.5 million.
Target (TGT) is down more than -7% after forecasting a full-year sales decline of a low single-digit percentage compared to the consensus of a -1.71% decline.
Estee Lauder (EL) is down more than -5% after forecasting 2026 adjusted EPS of $1.90-$2.10, weaker than the consensus of $2.16.
Carvana (CVNA) and Avis Budget Group (CAR) are down more than -5%, and CarMax (KMX) is down more than -1% after CNBC reported that Hertz Global Holdings will start selling pre-owned cars on Amazon Autos.
TJX Cos (TJX) is up more than +4% to lead gainers in the S&P 500 after reporting Q3 comparable sales rose +4%, stronger than the consensus of +3.09%, and boosting its 2026 comparable sales forecast to +3% from a previous estimate of +2% to 3%, better than the consensus of +2.87%.
Hertz Global Holdings (HTZ) is up more than +5% after CNBC reported the company will start selling pre-owned cars on Amazon Autos.
Dayforce (DAY) is up more than +2% on reports that the company is in advanced talks with Thoma Bravo to be acquired for $70 a share.
Analog Devices (ADI) is up more than +2% to lead gainers in the Nasdaq 100 after reporting Q3 revenue of $2.88 billion, better than the consensus of $2.76 billion.
Jack Henry & Associates (JKHY) is up more than +2% after reporting Q4 processing revenue of $264.1 million, above the consensus of $255.3 million.
McCormick & Co. (MKC) is up more than +1% after JPMorgan Chase double upgraded the stock to overweight from underweight with a price target of $83.
Lowe’s (LOW) is up more than +1% after acquiring Foundation Building Materials for about $8.8 billion as it expands beyond home improvement supplies.
Earnings Reports(8/20/2025)
Analog Devices Inc (ADI), Coty Inc (COTY), Estee Lauder Cos Inc/The (EL), Lowe’s Cos Inc (LOW), Nordson Corp (NDSN), Target Corp (TGT), TJX Cos Inc/The (TJX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Losses Accelerate on a Rout in Tech Stocks

The S&P 500 Index ($SPX) (SPY) today is down by -0.30%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.12%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.67%. September E-mini S&P futures (ESU25) are down -0.35%, and September E-mini Nasdaq futures (NQU25) are down -0.71%.
Stock indexes today extended Tuesday’s losses, with the S&P 500 falling to a 1-week low and the Nasdaq 100 dropping to a 2-week low. The weakness in the Magnificent Seven technology companies and losses in chip makers are weighing on the overall market. Also, disappointing corporate news is negative for stocks, with Target down more than 8% after forecasting a bigger-than-expected decline in full-year sales. Estee Lauder is down more than -3% after forecasting weaker-than-expected 2026 EPS.
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US MBA mortgage applications fell -1.4% in the week ended August 15, with the purchase mortgage sub-index up +0.1% and the refinancing sub-index down -3.1%. The average 30-year fixed rate mortgage rose +1 bp to 6.68% from 6.67% in the prior week.
Diplomatic talks over the war in Ukraine continue to make headway. President Trump is pushing for a summit between Presidents Putin and Zelenskiy soon, and European leaders are discussing a plan to send British and French troops to Ukraine as part of a peace agreement. The outcome of the talks could have macroeconomic implications regarding tariffs and oil prices, and could, of course, have significant consequences for European security.
The focus of the markets this week will be on any new tariff news and signs of progress toward a Ukraine peace deal. On Wednesday, the minutes of the July 29-30 FOMC meeting will be released. On Thursday, weekly initial unemployment claims are expected to climb by +1,000 to 225,000, and the Aug Philadelphia Fed business outlook survey is expected to fall to 6.7 from 15.9 in July. Also, the Aug S&P manufacturing PMI is expected to remain unchanged at 49.8. In addition, Jul existing home sales are expected to fall -0.3% m/m to 3.92 million. On Friday, Fed Chair Powell speaks on the economic outlook at the Federal Reserve’s annual symposium at Jackson Hole, Wyoming.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 84% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 55% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 92% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.09%. China’s Shanghai Composite climbed to a new 10-year high and closed up +1.04%. Japan’s Nikkei Stock 225 closed down -1.51%.
Interest Rates
September 10-year T-notes (ZNU25) today are up +2 ticks, and the 10-year T-note yield is down -0.6 bp to 4.300%. Sep T-notes are modestly higher today, supported by weakness in equity markets. Also, strength in European government bonds is providing carryover support to T-notes.
Supply pressures are limiting gains in T-notes as the Treasury will auction $16 billion of 20-year T-bonds later today. Also, concerns that last week’s bearish US July CPI and PPI reports could keep the Fed from cutting interest rates at next month’s FOMC meeting are weighing on T-notes.
European government bond yields today are moving lower. The 10-year German bund yield is down -1.7 bp to 2.734%. The 10-year UK gilt yield is down -4.4 bp to 4.696%.
ECB President Lagarde said the Eurozone economy is likely to see slower growth this quarter, with questions over global trade remaining despite recent trade deals with the US reducing uncertainty.
UK Jul CPI rose +3.8% y/y, stronger than expectations of +3.7% y/y and the fastest pace of increase in 1.5 years. Jul core CPI also rose +3.8% y/y, stronger than expectations of +3.7% y/y.
Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven stocks are under pressure today, weighing on the broader market. Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META) are down more than -2%. Also, Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL) are down more than -1%. Microsoft (MSFT) is down 0.05%.
Weakness in chip stocks is a drag on the overall market. Intel (INTC) is down more than -6% to lead losers in the Nasdaq 100. Also, Micron Technology (MU) is down more than -3%, and Advanced Micro Devices (AMD) and ARM Holdings Plc (ARM) are down more than -2%. In addition, Broadcom (AVGO), Applied Materials (AMAT), and Marvell Technology (MRVL) are down more than -1%.
James Hardie Industries Plc (JHX) is down more than -33% after reporting its Q2 operating profit sank -29% y/y and said difficult economic conditions continue to weigh on homebuyers after recording the slowest spring season in more than twelve years.
La-Z-Boy (LZB) is down more than -13% after reporting Q1 comparable sales fell -4% y/y versus -3% y/y, and forecast Q2 sales of $510 million-$530 million, the midpoint below the consensus of $528.5 million.
Target (TGT) is down more than -8% to lead losers in the S&P 500 after forecasting a full-year sales decline of low-single digit percentage compared to the consensus of a -1.71% decline.
Estee Lauder (EL) is down more than -3% after forecasting 2026 adjusted EPS of $1.90-$2.10, weaker than the consensus of $2.16.
Carvana (CVNA) and Avis Budget Group (CAR) are down more than -4%, and CarMax (KMX) is down more than -1% after CNBC reported that Hertz Global Holdings will start selling pre-owned cars on Amazon Autos.
TJX Cos (TJX) is up more than +5% to lead gainers in the S&P 500 after reporting Q3 comparable sales rose +4%, stronger than the consensus of +3.09%, and boosting its 2026 comparable sales forecast to +3% from a previous estimate of +2% to 3%, better than the consensus of +2.87%.
Hertz Global Holdings (HTZ) is up more than +5% after CNBC reported the company will start selling pre-owned cars on Amazon Autos.
Dayforce (DAY) is up more than +3% on reports that the company is in advanced talks with Thoma Bravo to be acquired for $70 a share.
Analog Devices (ADI) is up more than +2% to lead gainers in the Nasdaq 100 after reporting Q3 revenue of $2.88 billion, better than the consensus of $2.76 billion.
Nubank (NU) is up more than +2% after Citigroup double upgraded the stock to buy from sell with a price target of $18.
McCormick & Co. (MKC) is up more than +2% after JPMorgan Chase double upgraded the stock to overweight from underweight with a price target of $83.
Lowe’s (LOW) is up more than +1% after acquiring Foundation Building Materials for about $8.8 billion as it expands beyond home improvement supplies.
Earnings Reports(8/20/2025)
Analog Devices Inc (ADI), Coty Inc (COTY), Estee Lauder Cos Inc/The (EL), Lowe’s Cos Inc (LOW), Nordson Corp (NDSN), Target Corp (TGT), TJX Cos Inc/The (TJX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tech Weakness and Negative Corporate News Weigh on Stocks

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Technology Select Sector SPDR Fund (Symbol: XLK) where we have detected an approximate $65.4 million dollar outflow -- that's a 0.1% decrease week over week (from 319,655,897 to 319,405,897). Among the largest underlying components of XLK, in trading today International Business Machines Corp (Symbol: IBM) is off about 0.1%, Qualcomm Inc (Symbol: QCOM) is down about 1%, and Applied Materials, Inc. (Symbol: AMAT) is lower by about 2.2%. For a complete list of holdings, visit the XLK Holdings page » The chart below shows the one year price performance of XLK, versus its 200 day moving average:
Looking at the chart above, XLK's low point in its 52 week range is $172.45 per share, with $270.0499 as the 52 week high point — that compares with a last trade of $257.34. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Funds Holding OGSP
VCRA Insider Buying
LQ Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLK, IBM, QCOM, AMAT: ETF Outflow Alert

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Applied Materials, Inc. (Symbol: AMAT) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Applied Materials, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of AMAT entered into oversold territory, changing hands as low as $161.49 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Applied Materials, Inc., the RSI reading has hit 29.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 52.3. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, AMAT's recent annualized dividend of 1.84/share (currently paid in quarterly installments) works out to an annual yield of 1.13% based upon the recent $163.53 share price.
A bullish investor could look at AMAT's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on AMAT is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
SDVY shares outstanding history
Top 10 Hedge Funds Holding INTU
EMCG market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Relative Strength Alert For Applied Materials

Applied Materials AMAT stocks are trading at a forward 12-month P/E of 16.69X, which is lower than the Zacks Electronics - Semiconductors industry’s P/E of 34.47X. Although AMAT appears to be discounted, let's delve deeper into its fundamentals to understand if the valuation is justified or if it shows signs of weakness.
AMAT Forward 12 Month (P/E) Valuation Chart
Image Source: Zacks Investment Research
AMAT stock has underperformed the industry. In the year-to-date period, AMAT stock has climbed 0.5% compared with the industry’s return of 19.7%. The underperformance of AMAT’s share price raises the question: Should investors buy, hold or sell AMAT stock?
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
Sluggish Sales in China: A Key Concern for AMAT
A major headwind for Applied Materials is increasing U.S.-China tensions and export restrictions on semiconductor manufacturing equipment. China remains a crucial market for Applied Materials, accounting for a significant portion of total revenues. However, U.S. government restrictions on selling advanced semiconductor equipment to Chinese manufacturers are hurting Applied Materials’ sales and growth outlook.
Applied Materials experienced a sharp decline in China from the fourth quarter of 2024 to the second quarter of 2025, recovering marginally in the third quarter of 2025. However, for AMAT, its China business is creating increased uncertainty and lower visibility in the near term. The company expects a decline in revenues in the fourth quarter due to the digestion of capacity in China.
AMAT faces elevated uncertainty in China due to ongoing geopolitical tensions and regulatory scrutiny. If stricter export controls are imposed, Applied Materials’ long-term revenue potential could take a hit, as Chinese chipmakers are forced to turn to domestic alternatives or non-U.S. suppliers.
AMAT Faces Macroeconomic and Competitive Headwinds
Although the broader semiconductor market is recovering, memory markets, including DRAM and NAND, remain weak. The company expects only a gradual recovery in memory-related semiconductor demand in 2025, which could weigh on Applied Materials’ revenue growth in the near term. Furthermore, the competition from players like KLA Corporation KLAC, Lam Research LRCX and ASML Holdings ASML in the semiconductor supply chain market is also a concern for AMAT.
Lam Research’s memory segment, accounting for both Dynamic Random Access Memory and Non-Volatile Memory divisions, is gaining traction on the back of AI. Lam Research’s memory and Non-Volatile Memory division’s sales are gaining traction. The rising demand for AI chips is also ramping up the demand for advanced process control and process-enabling solutions provided by KLA Corporation.
KLAC’s advanced packaging solutions are also experiencing robust traction on the back of AI and high-performance computing. ASML Holding’s DRAM and logic customers are driving the demand for its products. These customers are ramping up leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps in shortening cycle time and lowering costs.
AMAT’s 200-Day and 50-Day SMAs Suggest Bearish Trend
AMAT’s shares are trading below the 200-day and 50-day moving averages, indicating a bearish trend.
Image Source: Zacks Investment Research
Conclusion: Sell AMAT Now
Although AMAT shares may appear discounted, weak fundamentals, macroeconomic headwinds, and U.S. tariff policies weigh on its attractiveness. Moreover, both the 200-day and 50-day SMAs point to a downward trend. Considering these factors, we recommend investors to avoid this Zacks Rank #4 (Sell) stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AMAT Stock Trades at a P/E of 16.69X: Should You Buy, Sell or Hold?

Looking at the universe of stocks we cover at Dividend Channel, on 8/21/25, Microsoft Corporation (Symbol: MSFT), SBA Communications Corp (Symbol: SBAC), and Applied Materials, Inc. (Symbol: AMAT) will all trade ex-dividend for their respective upcoming dividends. Microsoft Corporation will pay its quarterly dividend of $0.83 on 9/11/25, SBA Communications Corp will pay its quarterly dividend of $1.11 on 9/18/25, and Applied Materials, Inc. will pay its quarterly dividend of $0.46 on 9/11/25. As a percentage of MSFT's recent stock price of $517.14, this dividend works out to approximately 0.16%, so look for shares of Microsoft Corporation to trade 0.16% lower — all else being equal — when MSFT shares open for trading on 8/21/25. Similarly, investors should look for SBAC to open 0.52% lower in price and for AMAT to open 0.28% lower, all else being equal.
Below are dividend history charts for MSFT, SBAC, and AMAT, showing historical dividends prior to the most recent ones declared.
Microsoft Corporation (Symbol: MSFT):
SBA Communications Corp (Symbol: SBAC):
Applied Materials, Inc. (Symbol: AMAT):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.64% for Microsoft Corporation, 2.06% for SBA Communications Corp, and 1.13% for Applied Materials, Inc..
In Tuesday trading, Microsoft Corporation shares are currently down about 0.6%, SBA Communications Corp shares are off about 2.2%, and Applied Materials, Inc. shares are up about 1.1% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Microsoft, SBA Communications and Applied Materials

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Altria Group Inc (Symbol: MO), where a total of 71,339 contracts have traded so far, representing approximately 7.1 million underlying shares. That amounts to about 81.8% of MO's average daily trading volume over the past month of 8.7 million shares. Particularly high volume was seen for the $68 strike call option expiring August 22, 2025, with 50,061 contracts trading so far today, representing approximately 5.0 million underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $68 strike highlighted in orange:
Applied Materials, Inc. (Symbol: AMAT) saw options trading volume of 45,622 contracts, representing approximately 4.6 million underlying shares or approximately 60.4% of AMAT's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $167.50 strike call option expiring August 22, 2025, with 5,499 contracts trading so far today, representing approximately 549,900 underlying shares of AMAT. Below is a chart showing AMAT's trailing twelve month trading history, with the $167.50 strike highlighted in orange:
And Medtronic PLC (Symbol: MDT) saw options trading volume of 35,762 contracts, representing approximately 3.6 million underlying shares or approximately 55.4% of MDT's average daily trading volume over the past month, of 6.5 million shares. Especially high volume was seen for the $89 strike put option expiring August 22, 2025, with 7,890 contracts trading so far today, representing approximately 789,000 underlying shares of MDT. Below is a chart showing MDT's trailing twelve month trading history, with the $89 strike highlighted in orange:
For the various different available expirations for MO options, AMAT options, or MDT options, visit StockOptionsChannel.com.
VC YTD Return
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: MO, AMAT, MDT

The following are the top rated Information Technology stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
QUALCOMM INC (QCOM) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of QUALCOMM INC
APPLIED MATERIALS INC (AMAT) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: 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 in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of APPLIED MATERIALS INC
FORTINET INC (FTNT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fortinet, Inc. is engaged in cybersecurity, driving the convergence of networking and security. The Companys integrated platform, Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge (SASE) and artificial intelligence (AI)-driven security operations (SecOps). Its products and services include FortiOS, FortiASIC, FortiCloud, FortiAI, FortiEndpoint, and OT Security. The FortiGuard Labs is a cybersecurity threat intelligence and research organization comprised of experienced threat hunters, researchers, analysts, engineers and data scientists who develop and utilize machine learning and AI technologies. FortiGuard and Other Security Services are a suite of AI-powered security capabilities that are integrated as part of the Fortinet Security Fabric to deliver coordinated detection and enforcement across the entire attack surface. FortiCare Technical Support Service is a per-device technical support service. It also operates Fortinet Training Institute.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FORTINET INC
MONOLITHIC POWER SYSTEMS INC (MPWR) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Monolithic Power Systems, Inc. is a fabless company, which provides semiconductor-based power electronic solutions. The Company design and develop its products for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets. Direct Current (DC) to DC, Alternating Current (AC) to DC, driver metal-oxide-semiconductor field-effect transistor, power management integrated circuit (IC), current limit switch and lighting control products. Its DC to DC ICs are used to convert and control voltages within a range of electronic systems, such as cloud-based central processing unit (CPU) servers, server artificial intelligence (AI) applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, fourth generation (4G) and fifth generation (5G) infrastructure and satellite communications applications. The Company have sales offices in various locations in Asia, Europe and the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of MONOLITHIC POWER SYSTEMS INC
SUPER MICRO COMPUTER INC (SMCI) is a large-cap growth stock in the Computer Hardware industry. The rating according to our strategy based on Peter Lynch is 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Super Micro Computer, Inc. provides application-optimized Total IT solutions. It delivers rack-scale solutions optimized for various workloads, including artificial intelligence and high-performance computing, where acceleration is critical. It produces a portfolio of server and storage solutions for enterprise data centers, cloud service providers and edge computing (5G Telco, Retail and embedded). Total IT Solutions include complete servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems, server management and security software. It provides global support and services to help its customers install, upgrade and maintain their computing infrastructure, including liquid-cooling operations. It offers platforms in rackmount, blade, multi-node and embedded form factors, which support single, dual and multiprocessor architectures. Its key product lines include SuperBlade and MicroBlade, SuperStorage, Twin and others.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SUPER MICRO COMPUTER INC
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Information Technology Stocks Based On Peter Lynch - 8/18/2025

Applied Materials, Inc.’s AMAT shares tumbled 14.1% after it issued a grim sales and profit outlook, stoking concerns that the U.S.-China trade dispute was hampering demand.
Shares of UnitedHealth Group Incorporated UNH jumped 12% on Berkshire Hathaway Inc.’s (BRK.A) announcement of a $1.6 billion stake, signaling strong investor confidence amid the company’s recent challenges.
Wells Fargo & Company’s WFC shares fell 2.9% on financial stocks, losing out in the session.
Shares of Eli Lilly and Company LLY gained 2.7% on reports emerging that a major collaboration deal worth up to $1.3 billion with Superluminal Medicines to develop obesity and cardiometabolic treatments was in the cards.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Applied Materials, Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — medium

AI Factors

Quantum Computing

stagflation

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Internet of Things

US Presidential Election

United States - China Relations

Generative AI

Self-driving Cars

Japanese Economy

Cloud Computing

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Bitcoin

US Presidental Election

Inflation

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European Bond Market

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