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.

Lam Research Corporation LRCX recently posted robust first-quarter fiscal 2026 results, helping its shares rise 11% since the Oct. 22 release. LRCX’s first-quarter top and bottom lines surpassed the Zacks Consensus Estimate and marked a significant year-over-year improvement.
The latest quarterly performance is likely to push its share prices further, which have already witnessed a remarkable run this year so far. The stock has soared 117.6% year to date (YTD), outperforming the Zacks Electronics - Semiconductors industry’s gain of 42.3%.
Lam Research has also outpaced the gains of other semiconductor peers, including KLA Corporation KLAC, ASML Holding ASML and Applied Materials AMAT. YTD, shares of KLA Corporation, ASML Holding and Applied Materials have surged 93.4%, 52.7% and 42.7%, respectively.
Lam Research YTD Price Return Performance
Image Source: Zacks Investment Research
For investors considering their next move, here’s why buying Lam Research stock might be the most prudent approach now.
Q1 Performance Shows LRCX’s Financial Resilience
Lam Research’s first-quarter earnings surpassed expectations, showcasing the company’s solid financial foundation. Total revenues rose 28% year over year to $5.32 billion and beat the Zacks Consensus Estimate by 2%, primarily driven by continued demand across the Systems and Customer Support Business Group segments.
Lam Research reported first-quarter non-GAAP earnings of $1.26 per share, which beat the consensus mark by 4.1%. The bottom line also increased 46.5% on a year-over-year basis.
Lam Research Corporation Price, Consensus and EPS Surprise
Expanding its manufacturing operations in Asia has also helped the company lower costs and improve margins. In the first quarter, Lam Research’s non-GAAP operating margin rose to 35%, up 410 basis points from the year-ago quarter, which is impressive, considering the challenging macroeconomic environment.
This strong financial performance reinforces Lam Research’s resilience in navigating an evolving semiconductor cycle. As demand grows for advanced nodes, LRCX’s specialized technology in etch and deposition tools for high-aspect-ratio structures positions it well to capitalize on this trend. The company’s first-quarter results also highlight its effective cost management, which has enabled sustained profitability even amid fluctuating end-market demand.
Datacenter and AI Chip Demand Boosts LRCX’s Prospects
Lam Research is benefiting from the booming demand for artificial intelligence (AI) and datacenter chips, which require advanced fabrication technologies. The company’s deposition and etch solutions are critical for producing high-bandwidth memory (HBM) and advanced packaging technologies, which are essential for AI workloads.
In 2024, Lam Research’s shipments for gate-all-around nodes and advanced packaging exceeded $1 billion, and management expects this figure to triple to more than $3 billion by 2025. Additionally, the industry’s migration to backside power distribution and dry-resist processing presents further growth opportunities for Lam’s cutting-edge fabrication solutions.
With AI-driven investments accelerating, Lam Research’s leading position in etch and deposition makes it a key beneficiary of the ongoing semiconductor spending cycle.
Analysts’ expectations for top and bottom lines indicate continued growth momentum for Lam Research in the years ahead. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues signifies a year-over-year increase of 11.9% and 11.7%, respectively. The consensus mark for fiscal 2026 and 2027 earnings per share indicates growth of 13% and 16.1%, respectively.
LRCX’s Valuation Still Looks Attractive
Even after the robust YTD rally, Lam Research stock doesn’t look expensive. LRCX currently trades at a forward price-to-earnings (P/E) multiple of 31.83, which is significantly lower than the industry’s 37.93. The company’s discounted valuation multiple aligns with its long-term growth potential.
Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared with major semiconductor stocks, LRCX trades at a lower P/E multiple than ASML and KLA Corporation, while at a premium to AMAT. At present, ASML Holding, KLA Corporation and Applied Materials have forward 12-month P/E multiples of 35.39, 33.46 and 24.56, respectively.
Final Thoughts: Buy LRCX Right Now
Lam Research’s discounted valuation, solid financial performance and strategic focus on AI-driven growth make it a compelling investment option right now. The company’s expanding market share in AI and datacenter fabrication, coupled with innovative product launches, strengthens its competitive positioning.
LRCX sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Should Lam Research Stock Be in Your Portfolio Post Solid Q1 Earnings?

Applied Materials (AMAT) closed at $231.33 in the latest trading session, marking a +1.13% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.23%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 1.86%.
Shares of the maker of chipmaking equipment have appreciated by 12.18% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.49%, and the S&P 500's gain of 2.45%.
The upcoming earnings release of Applied Materials will be of great interest to investors. In that report, analysts expect Applied Materials to post earnings of $2.11 per share. This would mark a year-over-year decline of 9.05%. Our most recent consensus estimate is calling for quarterly revenue of $6.7 billion, down 4.84% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.36 per share and a revenue of $28.27 billion, signifying shifts of +8.21% and +4.03%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.11% downward. Applied Materials is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Applied Materials is holding a Forward P/E ratio of 24.43. This represents a discount compared to its industry average Forward P/E of 40.99.
We can additionally observe that AMAT currently boasts a PEG ratio of 2.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Electronics - Semiconductors industry held an average PEG ratio of 1.95.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AMAT in the coming trading sessions, be sure to utilize Zacks.com.
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Applied Materials (AMAT) Ascends But Remains Behind Market: Some Facts to Note

Key Points
Applied Materials has outperformed the S&P 500 over the past five years.
The semiconductor market’s recovery generated tailwinds for its business.
But its stock isn’t a screaming bargain -- and it isn’t really a top AI play.
Over the past few years, the explosive growth of artificial intelligence (AI) has generated strong tailwinds for AI-focused chipmakers like Nvidia. Therefore, the most straightforward way to profit from that trend might be to simply invest in those top chipmakers.
Yet semiconductor equipment makers like Applied Materials (NASDAQ: AMAT) are also benefiting from the AI boom. It isn't a hypergrowth play like Nvidia, but Applied Materials' stock has risen nearly 270% over the past five years as the S&P 500 has nearly doubled. Let's see why it outperformed the market -- and if it's still worth buying.
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What does Applied Materials do?
Applied Materials is one of the world's top suppliers of semiconductor manufacturing equipment. In fiscal 2024 (which ended last October), it generated 73% of its revenue from its semiconductor systems business, which produces a wide range of equipment for the foundry, logic, and memory chipmaking markets.
Another 23% came from its related services, while the remaining 4% came from its display and adjacent markets. Here's how its core businesses fared over the past five years.
YOY Growth
FY 2021
FY 2022
FY 2023
FY 2024
9M 2025
Semiconductor systems revenue
43%
15%
5%
1%
9%
Applied global services revenue
21%
11%
3%
9%
4%
Display and adjacent markets revenue
2%
(19%)
9%
2%
5%
Total revenue
34%
12%
3%
2%
7%
Adjusted EPS
64%
13%
5%
7%
14%
In fiscal 2022 and fiscal 2023, growth decelerated as the semiconductor market lapped its pandemic-driven boom in 2020 and 2021. Many chipmakers expanded their capacity during the crisis to meet the soaring demand for new PCs and servers. But as that temporary growth spurt ended, rising chip inventories drove many producers to reduce their capital expenditures and purchase less equipment.
A supply glut in the memory chip market, tighter export curbs on chip sales to China, and supply chain bottlenecks exacerbated that pressure. To make matters worse, inflation drove up its operating costs while rising interest rates drove many chipmakers to rein in their expansion plans.
But in fiscal 2024 and fiscal 2025, Applied Materials' top- and bottom-line growth accelerated again, driven by four main catalysts: the growth of the AI market, the memory market's recovery, the stabilization of its supply chain, and lower interest rates.
Will Applied Materials keep outperforming the market?
The expansion of the semiconductor market helped Applied Materials outperform the S&P 500 over the past five years. Today, it hovers near its 52-week high because investors are likely impressed by its near-term tailwinds -- especially its exposure to the booming AI market.
During the company's latest conference call, CEO Gary Dickerson said its long-term thesis "remains unchanged as companies and countries compete to win the race for AI leadership" -- and that the business is "best positioned at the major device inflections that enable the AI road map."
However, it doesn't disclose exactly how much revenue it generates from AI-focused chipmakers. It's also growing much slower than its industry peer ASML, which dominates the high-growth niche of lithography systems.
For fiscal 2025, analysts expect Applied Materials' revenue and adjusted earnings per share (EPS) to grow 4% and 8%, respectively. For fiscal 2026, they expect revenue and adjusted EPS to rise 3% and 1%, respectively. Those rates are stable, but they're not that impressive for a stock that trades at 23 times forward earnings. Its paltry forward dividend yield of 0.8% also won't attract any serious income investors.
So while Applied Materials can be strong long-term play on the semiconductor market, I wouldn't call it an AI stock yet. It would benefit from the expansion of the AI market, but it's also exposed to plenty of other markets. Tighter curbs against exports to China, which accounted for 30% of its revenue in the first nine months of fiscal 2025, could generate even more unpredictable headwinds.
Therefore, Applied Materials' stock might still be worth buying (especially at a slightly lower valuation), but there are plenty of better ways to invest in the AI chipmaking boom. I personally think ASML -- which has monopolized the market for high-end lithography systems -- is a better play on that secular trend.
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Leo Sun has positions in ASML. The Motley Fool has positions in and recommends ASML, Applied Materials, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Applied Materials Stock a Buy as AI Chip Manufacturing Surges?

To say there’s a lot of hype around AI is the understatement of the decade. It’s been at the headlines of this rally, helping create new fortunes and fuel the next generation of bellwethers. These names have already made some epic runs. If only there was a way to play the surge in a more sustainable way. Maybe…a company that helps to power all these chips and such. Today’s Bull of the Day is one of those names.
Enter Advanced Energy Industries (AEIS), the unsung hero of the silicon supply chain, sitting squarely at the intersection of physics, precision, and profitability. It’s not a chipmaker. It’s not an equipment behemoth like Applied Materials. AEIS is the one building the finely tuned, high-precision power systems that make every wafer fab hum like a Swiss watch. When it comes to semiconductor manufacturing, AEIS is the quiet voice that says, “You want clean power? You want consistency down to the electron? We got you.”
Let’s get into why this stock, a Zacks Rank #1 (Strong Buy), is one of the most intriguing mid-cap semiconductor plays on the board right now.
The Power Behind the Process
Every chip, whether it’s in your iPhone, your Tesla, or your AI data center, starts life in a fabrication plant that’s part physics lab, part cleanroom cathedral. These fabs depend on incredibly stable and precise power delivery systems to etch, deposit, and measure at the atomic level.
Advanced Energy Industries, Inc. Price and Consensus
That’s AEIS’s playground.
The company designs and manufactures high-performance power conversion, measurement, and control solutions for advanced semiconductor and industrial applications. Think plasma power for etching and deposition, high-voltage power for inspection, and thermal control for all the processes in between. If you’ve ever wondered how a fab keeps the electricity steady enough to carve a transistor only a few atoms thick, AEIS is the answer.
That’s why Applied Materials (AMAT), Lam Research (LRCX), and Tokyo Electron are among its biggest customers. They build the gear. AEIS gives that gear its pulse.
Tailwinds Stronger Than a Cleanroom Airflow
If you’re wondering why AEIS is in such a sweet spot, it’s because everything semiconductors touch is expanding.
AI data centers? They need more wafers. EVs? More power electronics. Renewable energy? More advanced inverters and control systems. And the global fab buildout, led by the U.S., South Korea, and Taiwan, is a multi-year infrastructure boom that plays right into AEIS’s hands.
Semiconductor capital equipment spending in 2025 is projected to rebound by double digits after a soft 2024, and AEIS’s management has already signaled that demand from leading-edge nodes (sub-5 nanometer processes) is beginning to recover. The company’s broad exposure means it benefits not only from memory and logic production but also from advanced packaging and inspection. These are areas less cyclical than pure front-end chipmaking.
Earnings Energy
Now, the beauty of AEIS isn’t just in the technology, it’s in the trajectory.
The company’s last few quarters have shown the kind of disciplined execution you love to see in a cyclical sector. Margins are expanding, backlog visibility is improving, and analysts have been steadily revising earnings to the upside.
There is a lot cooking under the hood with this company. Current year Zacks Consensus Estimate calls for $5.68 with is good for 53% growth year-over-year. That’s slated to grow another 15% to $6.54 next year.
Onto the revenue side of the equation, current year forecasts call for 16.7% growth to $1.73 billion with next year adding another 6.76% to $1.85 billion.
According to its last earnings report, gross margins are hovering near 38%, with management targeting the low 40s by 2026 through better product mix and cost discipline.
AEIS doesn’t chase wild, unprofitable growth. It engineers steady, sustainable profitability.
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Bull of the Day: Advanced Energy Industries (AEIS)

ASML Holding N.V. ASML is taking a major step beyond hardware with a €1.3 billion investment in Mistral AI, a French artificial intelligence (AI) company known for developing large language models. The investment gives ASML an 11% stake and a seat on Mistral’s strategic committee. More importantly, it signals ASML’s deeper integration of AI into its core lithography systems, aiming to enhance productivity, precision and customer chip yields.
AI already plays a growing role in chip design and manufacturing, and ASML Holding’s machines are central to that process. By embedding Mistral’s generative AI tools into its extreme ultraviolet (EUV) platform, ASML expects faster innovation cycles, improved time to market and reduced development costs. This can strengthen its competitive advantage, especially as chipmakers race to expand advanced logic and DRAM capacity for AI-driven workloads.
The partnership also connects ASML Holding more closely with the broader AI ecosystem, potentially opening opportunities beyond traditional equipment sales. Over time, software-enabled performance improvements could translate into recurring revenue streams and stronger margins.
While ASML Holding faces near-term challenges such as a slowdown in China and the ramp-up costs of new High-NA EUV tools, its collaboration with Mistral AI could define the company’s next growth phase. If successful, it will allow ASML not just to power the AI revolution with its hardware but to harness AI itself to drive the next wave of semiconductor innovation.
The Zacks Consensus Estimate for 2025 revenues is pegged at $37.76 billion, indicating a 23.6% year-over-year increase.
ASML’s Rivals in Advanced Chipmaking Equipment Space
Although ASML is the only company providing EUV lithography tools, it operates in a broader ecosystem of semiconductor equipment makers. Its notable peers in the chipmaking equipment space are Applied Materials AMAT and KLA Corporation KLAC.
Applied Materials supplies equipment used in chip fabrication, including deposition and etching tools that are essential for both advanced and mature nodes. As chips become more complex with AI and high-performance workloads, Applied Materials’ tools aid in designing and making efficient and smaller node chips.
KLA Corporation specializes in process control, inspection and metrology systems. KLA Corporation’s equipment helps chipmakers monitor and improve yield during manufacturing.
ASML’s Share Price Performance, Valuation and Estimates
Shares of ASML Holding have risen 45.9% year to date compared with the Zacks Computer and Technology sector’s gain of 23.8%.
ASML YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ASML trades at a forward price-to-earnings ratio of 33.79, significantly higher than the sector’s average of 29.22.
ASML Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ASML Holding’s 2025 and 2026 earnings implies a year-over-year increase of approximately 39.7% and 3.6%, respectively. Estimates for 2025 and 2026 earnings have been revised upward in the past seven days.
Image Source: Zacks Investment Research
ASML Holding currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Is ASML's 1.3B Euro AI Bet the Catalyst for Its Next Growth Cycle?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Neos Nasdaq-100 High Income ETF (Symbol: QQQI) where we have detected an approximate $236.9 million dollar inflow -- that's a 4.3% increase week over week in outstanding units (from 100,290,000 to 104,590,000). Among the largest underlying components of QQQI, in trading today Advanced Micro Devices Inc (Symbol: AMD) is off about 2.2%, Applied Materials, Inc. (Symbol: AMAT) is off about 1%, and Adobe Inc (Symbol: ADBE) is lower by about 0.2%. For a complete list of holdings, visit the QQQI Holdings page » The chart below shows the one year price performance of QQQI, versus its 200 day moving average:
Looking at the chart above, QQQI's low point in its 52 week range is $41.1701 per share, with $55.18 as the 52 week high point — that compares with a last trade of $54.25. 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 ».
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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.
Also see:
Top Ten Hedge Funds Holding SALE
PAYS Stock Predictions
AYN 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.

QQQI, AMD, AMAT, ADBE: ETF Inflow Alert

Applied Materials AMAT stock has gained 38.9% in the past three months, outperforming the Zacks Electronics - Semiconductors industry’s return of 38.7%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
AMAT is currently trading at a lower valuation than its forward 12-month price-to-earnings (P/E) ratio at 24.00X, which is lower than the Zacks Electronics - Semiconductors industry’s average of 37.17X.
AMAT Forward 12 Months (P/E) Valuation Chart
Image Source: Zacks Investment Research
This rise in the share price of this semiconductor equipment vendor, while remaining undervalued, raises the question: Should investors hold on or exit the stock? Let’s break down the fundamentals, growth prospects, market challenges and valuation.
AMAT’s Top-Line Growth Driven by AI-Based Products
Applied Materials is benefiting from rising demand for AI infrastructure as the global data center, cloud and technology space moves toward AI integration. To capitalize on this trend, AMAT has introduced three new semiconductor manufacturing systems designed to power the next generation of AI chips. These systems include Kinex Bonding System, Centura Xtera Epi System and PROVision 10 eBeam Metrology System.
AMAT’s Logic and DRAM businesses are gaining traction on the back of rising demand for AI infrastructure. On the fiscal third-quarter 2025earnings call AMAT highlighted its leadership in both Logic and DRAM segments, each driven by major semiconductor transitions.
DRAM revenues grew approximately 50% year over year in the third quarter of fiscal 2025, surpassing $1 billion in etch sales, with next-generation gap fill Chemical Vapor Deposition and dielectric patterning wins positioning Applied Materials for vertical transistor and HBM growth, expected to continue robustly through fiscal 2026.
Applied Materials has been continuously ramping up its R&D investments. For instance, AMAT set up the Equipment and Process Innovation and Commercialization center for research, which is expected to be operational by 2026. The company is also collaborating with organizations like CEA-Leti and increasing its overall R&D expenses.
As discussed in its third-quarter fiscal 2025, the company is reducing its general and administrative expenses to offset the rising cost of R&D, which has effectively enabled AMAT to maintain its operating margin. AMAT’s non-GAAP operating margin expanded 190 basis points in the third quarter of fiscal 2025.
AMAT Suffers From Macroeconomic and Competitive Headwinds
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.
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.
Moreover, the broader semiconductor market is recovering, but 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 Holding 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.
These factors have contributed to analysts lowering the estimates of earnings for the fiscal 2025. The Zacks Consensus Estimate for fiscal 2025 earnings has been revised downward by 2 cents in the past 30 days.
Image Source: Zacks Investment Research
Conclusion: Hold AMAT for Now
Although AMAT shares may appear discounted, weak fundamentals, macroeconomic headwinds, and U.S. tariff policies weigh on its attractiveness. However, tailwinds like DRAM and NAND revenue growth and AMAT’s AI strategy make us recommend investors retain this Zacks Rank #3 (Hold) stock.
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AMAT Stock Rises 39% in 3 Months: Should You Buy, Sell or Hold?

ASML Holding N.V. ASML shares have jumped 43% over the past three months, far outpacing the Zacks Computer and Technology sector’s 13.4% gain.
ASML stock has also outperformed several semiconductor peers, including MKS Inc. MKSI, KLA Corporation KLAC and Applied Materials AMAT. In the past three months, shares of MKS, KLA Corporation and Applied Materials have risen 41.4%, 28% and 20.9%, respectively.
ASML Holding 3-Month Price Return Performance
Image Source: Zacks Investment Research
After such a sharp run-up, investors are wondering if ASML Holding still has room to climb or if it’s time to wait for a pullback. Let’s find out.
ASML’s EUV Technology: Its Core Advantage
ASML Holding’s leadership in extreme ultraviolet (EUV) lithography continues to set it apart from every other chip equipment maker. It holds a near-monopoly on this technology, which is critical for manufacturing the world’s most advanced chips at 3nm and below. Major customers like TSMC, Samsung and Intel rely on ASML’s systems to stay ahead in chip innovation, giving ASML extraordinary pricing power and strategic importance.
The next phase of growth lies in ASML Holding’s High Numerical Aperture (High-NA) EUV systems. These tools are designed for sub-2nm production, representing the next technological leap for chipmakers. While adoption has taken longer than initially expected, the long-term potential is significant. As the industry moves toward denser and more efficient chips, ASML’s High-NA machines will be central to that shift.
ASML Holding is already making progress in this area. On its third-quarter 2025earnings call management confirmed that SK hynix received its first High-NA EXE:5200 system. This follows ASML’s first shipment and installation of the EXE:5200 system in the second quarter of 2025. These systems will support manufacturing at the 1.4nm node and beyond. ASML expects commercial adoption to begin in late 2026 or early 2027, creating a strong, multi-year growth driver.
AI Boom Expands ASML’s Growth Runway
The accelerating demand for artificial intelligence (AI) is giving ASML Holding another powerful growth tailwind. AI workloads need cutting-edge chips with massive processing power and efficiency. This indicates more demand for advanced graphics processing units, AI accelerators and high-bandwidth memory, all of which depend on the kind of precision lithography ASML’s EUV machines deliver.
Because EUV technology is so complex and expensive to replicate, ASML Holding enjoys deep competitive protection. There’s no realistic rival in sight capable of challenging its dominance. This gives ASML not just pricing flexibility but a level of business stability rare in the semiconductor sector. As AI adoption continues across industries, ASML’s technology will remain indispensable in powering this new wave of computing.
ASML’s Q3 Results Highlight Strong Profitability
ASML Holding’s recently reported third-quarter 2025 results reinforced the company’s financial strength. Earnings grew 3.8% year over year to €5.48 per share. In U.S. dollar terms, earnings came at $6.41 per share, beating the Zacks Consensus Estimate by 2.2%. Revenues rose 0.7% to €7.52 billion, supported by a robust 27% increase in the services and field operations segment.
ASML Holding N.V. Price, Consensus and EPS Surprise
Although system sales slipped 6.3% due to a shift in product mix, the gross margin expanded to 51.6%, up 80 basis points. During the third-quarterearnings call CFO Roger Dassen noted that higher volumes of low-NA EUV tools and upgrades helped margins.
For the fourth quarter, ASML Holding expects revenues between €9.2 billion and €9.8 billion, a significant sequential increase. The company also anticipates gross margins of 51-53%, indicating a 40-basis-point sequential improvement at the mid-point. For full-year 2025, management projects sales to grow around 15% with margins near 52%, showing sustained demand for ASML’s products.
ASML’s Strong Fundamentals Support Premium Valuation
ASML stock isn’t cheap. It trades at a forward 12-month price-to-earnings (P/E) of 34.25X compared with the sector average of 29.41X. However, that valuation looks more reasonable when viewed through the lens of ASML Holding’s market position. The company’s monopoly in EUV lithography, expanding role in advanced chip production and consistent margin performance justify a premium multiple.
ASML Holding Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared to other semiconductor peers, ASML Holding has a higher P/E multiple than KLA Corporation, Applied Materials and MKS. Currently, KLA Corporation, Applied Materials and MKS trade at P/E of 31.66X, 24.00X and 17.69X, respectively. ASML’s higher multiple reflects not only its technology leadership but also the longer visibility of its growth cycle.
Final Thoughts: ASML Stock Still Looks Like a Buy
ASML Holding’s unmatched dominance in EUV and emerging High-NA lithography, combined with surging AI-related chip demand, gives it a durable competitive edge. With strong revenue visibility, improving margins and expanding customer adoption, ASML’s fundamentals justify holding or even adding at current levels for long-term investors.
Currently, ASML Holding sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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ASML Holding Rises 45% in Three Months: Should You Still Buy the Stock?

The S&P 500 Index ($SPX) (SPY) on Tuesday closed unchanged, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.47%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.06%. December E-mini S&P futures (ESZ25) fell -0.05%, and December E-mini Nasdaq futures (NQZ25) fell -0.08%.
Stock indexes settled mixed on Tuesday, with the S&P 500 posting a one-week high and the Dow Jones Industrial Average reaching a new record high. The broader market found support Tuesday on some positive corporate news. General Motors closed up more than +14% after raising its full-year adjusted EPS estimate. Also, 3M Co closed up more than +7% after raising its full-year adjusted EPS continuing operations estimate. In addition, RTX Corp closed up more than +7% after raising its full-year adjusted sales estimate. Finally, Coca-Cola closed up more than +4% after reporting better-than-expected Q3 comparable EPS.
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On the negative side, mining stocks retreated on Tuesday after the price of gold sank by more than -5% and silver prices plunged by more than -7% due to long liquidation pressures following their rallies to record highs last week. Also, weakness in semiconductor stocks weighed on the Nasdaq 100.
Gains in stocks were limited on Tuesday as they consolidated some of their sharp gains made over the past two sessions. The market is focusing on progress in US-China trade talks, as President Trump on Monday reiterated his threat to boost tariffs on Chinese goods "if there isn't a deal" by November 1. President Trump is scheduled to meet Chinese President Xi Jinping next week on the sidelines of the Asia-Pacific Economic Cooperation conference in South Korea.
In some minor US economic news, the Oct Philadelphia Fed non-manufacturing business activity survey fell -9.9 to a 4-month low of -22.2.
The shutdown of the US government continues into its fourth week, weighing on market sentiment and delaying key economic reports. The government shutdown means delays in the release of government reports, including the last three weeks of weekly initial unemployment claims and the Sep payroll report. The Bureau of Labor Statistics (BLS) said the September consumer price report, which was initially scheduled to be released last Wednesday, will be released this Friday. The White House has warned that if the government shutdown lingers, it would trigger widespread dismissals of employees in government programs that don't align with President Trump's priorities. Bloomberg Economics estimates that 640,000 federal workers will be furloughed during the shutdown, which would expand jobless claims and push the unemployment rate up to 4.7%.
Trade tensions between the US and China, the ongoing US government shutdown, and fears about credit quality in the US have sparked a buying spree in precious metals as a haven, with gold and silver reaching fresh all-time highs last Friday.
The markets this week will focus on earnings results as the Q3 earnings season continues. Rising corporate earnings expectations are a bullish backdrop for stocks. According to Bloomberg Intelligence, 85% of the S&P 500 companies that have reported so far have beaten forecasts. Also, more than 22% of companies in the S&P 500 that have provided guidance for their Q3 earnings results are expected to beat analysts' expectations, the highest in a year. However, Q3 profits are expected to have risen by +7.2% y/y, the smallest increase in two years. Also, Q3 sales growth is projected to slow to +5.9% y/y from 6.4% in Q2.
The markets are pricing in a 97% chance of a -25 bp rate cut at the next FOMC meeting on Oct 28-29.
Overseas stock markets settled higher on Tuesday. The Euro Stoxx 50 rallied to a new all-time high and closed up +0.10%. China's Shanghai Composite closed up +1.36%. Japan's Nikkei Stock 225 rose to a new record high and closed up by +0.27%.
Interest Rates
December 10-year T-notes (ZNZ5) on Tuesday closed up +5 ticks. The 10-year T-note yield fell -2.5 bp to 3.955%. T-note prices moved higher on Tuesday due to the ongoing US government shutdown, which could lead to additional job losses, reduced consumer spending, and a weakened US economy, potentially allowing the Fed to continue cutting interest rates. T-notes remained higher after the Oct Philadelphia Fed non-manufacturing business activity survey fell to a 4-month low.
European government bond yields moved lower on Tuesday. The 10-year German bund yield fell -2.5 bp to 2.552%. The 10-year UK gilt yield fell -2.7 bp to 4.478%.
Swaps are discounting a 2% chance for a -25 bp rate cut by the ECB at its next policy meeting on October 30.
US Stock Movers
General Motors (GM) closed up more than +14% to lead gainers in the S&P 500 after raising its full-year adjusted EPS estimate to $9.75-$10.50 from a previous estimate of $8.25-$10.00.
Halliburton (HAL) closed up more than +12% after reporting Q3 revenue of $5.60 billion, better than the consensus of $5.39 billion.
Warner Bros. Discovery (WBD) closed up more than +11% to lead gainers in the Nasdaq 100 after it announced it has initiated a review of strategic alternatives to maximize shareholder value.
Gartner (IT) closed up more than +8% after William Balire said it was "impressed" by a demo of the company's AI-powered AskGartner tool at the IT Symposium/Xpo 2025 conference.
3M Co (MMM) closed up more than +7% to lead gainers in the Dow Jones industrials after raising its full-year adjusted EPS continuing operations to $7.95-$8.05 from a previous estimate of $7.75-$8.00.
RTX Corp (RTX) closed up more than +7% after raising its full-year adjusted sales estimate to $86.5 billion-$87.0 billion from a previous estimate of $84.75 billion-$85.50 billion.
Danaher (DHR) closed up more than +6% after reporting Q3 adjusted EPS of $1.89, stronger than the consensus of $1.72.
Crown Holdings (CCK) closed up more than +5% after boosting its full-year adjusted EPS estimate to $7.70-$7.80 from a previous estimate of $7.10-$7.50, above the consensus of $7.39.
Coca-Cola (KO) closed up more than +3% after reporting Q3 comparable EPS of 82 cents, above the consensus of 78 cents.
Mining stocks sold off on Tuesday after gold prices sank more than -5% and silver prices plunged more than -7%. As a result, Newmont (NEM) closed down more than -9% to lead losers in the S&P 500. Also, Barrick Mining (B), Coeur Mining (CDE), Kinross Gold (KGC), and Anglogold Ashanti Plc (AU) closed down more than -9%.
Chipmakers declined on Tuesday, weighing on the Nasdaq 100. Micron Technology (MU) closed down more than -2%. Also, Broadcom (AVGO), Marvell Technology (MRVL), ASML Holding NV (ASML), ARM Holdings Plc (ARM), and Advanced Micro Devices (AMD) closed down more than -1%. In addition, Applied Materials (AMAT) closed down -0.93% and Nvidia (NVDA) closed down -0.81%.
Cleveland-Cliffs (CLF) closed down more than -17% after Wells Fargo Securities downgraded the stock to underweight from equal weight with a price target of $11.
NuScale Power (SMR) closed down more than -13% after Citigroup downgraded the stock to sell from neutral with a price target of $37.50.
Tempus AI (TEM) closed down more than -3% after TD Cowen downgraded the stock to hold from buy, citing valuation.
Alphabet (GOOGL) closed down by more than -2% after OpenAI unveiled the first AI-powered web browser, sparking competition with Alphabet's Google.
Verizon Communications (VZ) closed down more than -1% to lead losers in the Dow Jones Industrials after BNP Paribas Exane downgraded the stock to neutral from outperform.
Elevance Health (ELV) closed down more than -1% despite reporting better-than-expected Q3 operating revenue after the company said it sees 2025 Medicaid operating margin "modestly negative."
Earnings Reports(10/22/2025)
Alcoa Corp (AA), Amphenol Corp (APH), Annaly Capital Management Inc (NLY), AT&T Inc (T), Avery Dennison Corp (AVY), Boston Scientific Corp (BSX), CACI International Inc (CACI), Churchill Downs Inc (CHDN), CME Group Inc (CME), Crown Castle Inc (CCI), Equity LifeStyle Properties In (ELS), First American Financial Corp (FAF), FirstEnergy Corp (FE), GE Vernova Inc (GEV), Globe Life Inc (GL), Graco Inc (GGG), Hexcel Corp (HXL), Hilton Worldwide Holdings Inc (HLT), International Business Machine (IBM), Kinder Morgan Inc (KMI), Knight-Swift Transportation Holdings Inc (KNX), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Lithia Motors Inc (LAD), Medpace Holdings Inc (MEDP), Molina Healthcare Inc (MOH), Moody's Corp (MCO), Northern Trust Corp (NTRS), NVR Inc (NVR), O'Reilly Automotive Inc (ORLY), Packaging Corp of America (PKG), QuantumScape Corp (QS), Raymond James Financial Inc (RJF), Reliance Inc (RS), Robert Half Inc (RHI), SEI Investments Co (SEIC), Sonoco Products Co (SON), Southern Copper Corp (SCCO), SOUTHSTATE BANK CORP (SSB), Southwest Airlines Co (LUV), Stifel Financial Corp (SF), Teledyne Technologies Inc (TDY), Tesla Inc (TSLA), Thermo Fisher Scientific Inc (TMO), Travel + Leisure Co (TNL), United Rentals Inc (URI), Vertiv Holdings Co (VRT), Viking Therapeutics Inc (VKTX), Westinghouse Air Brake Technol (WAB), Wyndham Hotels & Resorts Inc (WH).
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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Stocks Settle Mixed on Strong Earnings and Weakness in Mining Stocks

For Immediate Release
Chicago, IL – October 21, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AstraZeneca PLC AZN, RTX Corp. RTX, Applied Materials, Inc. AMAT, Park Aerospace Corp. PKE and NetSol Technologies, Inc. NTWK.
Here are highlights from Monday’s Analyst Blog:
Top Research Reports for AstraZeneca, RTX and Applied Materials
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AstraZeneca PLC, RTX Corp. and Applied Materials, Inc., as well as two micro-cap stocks Park Aerospace Corp. and NetSol Technologies, Inc.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Let It Ride from Friday's Gains
Today's Featured Research Reports
AstraZeneca's shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+32% vs. +11.6%). The company's key drugs like Lynparza, Tagrisso, Imfinzi, Farxiga and Fasenra should keep driving revenues. AstraZeneca's pipeline is strong, with pivotal late and mid-stage pipeline data readouts lined up.
AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period.
However, potentially lower sales of Farxiga in China, the impact of Part D redesign on U.S. oncology sales and biosimilar/generic erosion of some key drugs are hurting the top line in 2025. Estimates are stable ahead of Q3 earnings release. The company has a mixed record of earnings surprises in the recent quarters.
(You can read the full research report on AstraZeneca here >>>)
Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past year (+30.4% vs. +15.8%). The company continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. This resulted in RTX registering a robust defense backlog of $92 billion as of June 30, 2025. Steadily improving global commercial air traffic boosts the company's sales.
RTX's management expects commercial aerospace recovery to remain robust, which, in turn, should boost the company's operating results in the near term. The company also holds a solid solvency position, at least in the short term.
Yet the uncertainties created by the recent imposition of U.S. government-issued import tariffs pose a risk for RTX. Supply-chain challenges continue to affect the aerospace sector, which may adversely impact RTX.
(You can read the full research report on RTX here >>>)
Applied Materials' shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+41.9% vs. +40.8%). The company is benefiting from strength in the Semiconductor Systems, owing to a rebound in the semiconductor industry, particularly in the foundry and logic space. Consistent progress in the services is aiding Applied Global Services' performance.
Solid momentum in the subscription and display businesses is a plus. Its strength in IoT, Communications, Auto, Power and Sensors (ICAPS) is likely to continue aiding its position in the semiconductor industry. Its diversified portfolio remains its key growth driver. The Zacks analyst model estimate indicates that sales are expected to witness a CAGR of 3.9% through fiscal 2025-2027.
However, increasing U.S.-China tensions and export restrictions on semiconductor manufacturing equipment may undermine its near-term growth prospects. Slow memory market recovery and rising operating costs remain major concerns.
(You can read the full research report on Applied Materials here >>>)
Shares of Park Aerospace have outperformed the Zacks Aerospace - Defense Equipment industry over the year-to-date period (+38.7% vs. +30.4%). This microcap company with a market capitalization of $396.72 million boasts a 40-year streak of uninterrupted quarterly dividends, distributing $606M since FY05—reflecting robust free cash flow and disciplined capital allocation. Positioned in the growing aerospace composites market, it benefits from demand for lightweight, fuel-efficient aircraft.
Park Aerospace targets high-complexity, low-volume applications in military and prototype programs, which offer margin upside and reduce competition. Proprietary products like SigmaStrut and AlphaStrut strengthen its technical edge and deepen OEM integration. U.S.-based manufacturing enhances quality control and mitigates geopolitical risks.
However, rising SG&A expenses, negative operating cash flow, and increased inventory pose near-term headwinds. Customer concentration and potential delays in aerospace programs add earnings volatility. Still, Park Aerospace trades at a discount to industry average on EV/Sales.
(You can read the full research report on Park Aerospace here >>>)
NetSol Technologies' shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+74% vs. +20.1%). This microcap company with a market capitalization of $53.27 million operates in the fast-digitizing global asset finance and leasing market, offering its AI-powered Transcend platform to OEMs, auto captives and financial institutions.
Strong regional traction in North America, Europe and APAC, coupled with modularity and regulatory adaptability, supports expansion into new markets. A completed shift to a SaaS-driven model, now accounting for nearly 50% of revenues, has enhanced predictability and margins, while disciplined cost control lifted fiscal 2025 EBITDA 76% year over year.
However, structural declines in license fees and unearned revenues, margin pressures from rising expenses and customer concentration (BMW + Daimler = 35% of revenues) pose risks. Sustaining growth will hinge on deeper SaaS penetration, APAC recovery and improved operating leverage amid competitive SaaS dynamics.
(You can read the full research report on NetSol Technologies here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
5 Stocks Set to Double
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Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Park Aerospace Corp. (PKE) : Free Stock Analysis Report
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.

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