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.

The S&P 500 Index ($SPX) (SPY) today is down -0.05%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.23%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.28%. March E-mini S&P futures (ESH26) are down -0.04%, and March E-mini Nasdaq futures (NQH26) are down -0.28%.
Stock indexes gave up early gains today and turned lower on weakness in megacap technology stocks. Higher bond yields are a negative factor for stocks as the 10-year T-note yield climbed to a 1.5-week high today at 4.19%. In addition, weakness in insurance stocks is a drag on the overall market.
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The strength in chip makers, megacap technology stocks, and AI-infrastructure companies is a supportive factor for stocks. Also, strength in European stocks today is providing carryover support to US equity markets after the Euro Stoxx 50 rallied to a new record high.
The US Dec S&P manufacturing PMI was kept unrevised at 51.8, right on expectations.
The markets are discounting the odds at 15% for a -25 bp rate cut at the FOMC’s next meeting on January 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 rallied to a new all-time high and is up by +0.77%. China’s Shanghai Composite and Japan’s Nikkei Stock 225 are closed today for the New Year’s Day holidays.
Interest Rates
March 10-year T-notes (ZNH6) are down -4 ticks. The 10-year T-note yield is up +2.6 bp to 4.181%. Mar T-notes fell to a 1.5-week low today, and the 10-year T-note yield rose to a 1.5-week high of 4.191%. T-notes are modestly lower today as stock market strength has reduced safe-haven demand for government debt securities. Also, rising inflation expectations are weighing on T-notes as the 10-year breakeven inflation rate rose to a 2.5-week high today at 2.262%.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 1.5-week high of 2.910% and is up +3.6 bp to 2.890%. The 10-year UK gilt climbed to a 1.5-week high of 4.530% and is up +4.3 bp to 4.521%.
The Eurozone Dec S&P manufacturing PMI was revised downward by -0.4 to 48.4 from the previously reported 49.2.
The Eurozone Nov M3 money supply rose +3.0% y/y, stronger than expectations of +2.7% y/y and the highest in four months.
The UK Dec S&P manufacturing PMI was revised downward by -0.6 to 50.6 from the previously reported 51.2.
Swaps are discounting a 1% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
The Magnificent Seven stocks gave up early gains today and turned lower, weighing on the broader market. Microsoft (MSFT), Amazon.com (AMZN), and Meta Platforms (META) are down more than -2%. Also, Tesla (TSLA) is down more than -1% after reporting Q4 vehicle deliveries of 418,227, weaker than the consensus of 440,907. In addition, Alphabet (GOOGL) is down -0.60% and Apple (AAPL) is down -0.50%.
Chip makers and AI-infrastructure stocks are moving higher today to lead the overall market higher. Sandisk (SNDK) is up more than +12% to lead gainers in the S&P 500, and ASML Holding NV (ASML) is up more than +8% to lead gainers in the Nasdaq 100 after Alethia Capital double-upgraded the stock to buy from sell with a price target of $1,500. Also, Micron Technology (MU) is up more than +7%, and Lam Research (LRCX), Western Digital (WDC), and Intel (INTC) are up more than +6%. In addition, ARM Holdings Plc (ARM) is up more than +5%, and Applied Materials (AMAT), KLA Corp (KLAC), Advanced Micro Devices (AMD), Marvell Technology (MRVL), and Seagate Technology Holdings (STX) are up more than +4%. Finally, Broadcom (AVGO) is up more than +3%.
Cryptocurrency-exposed stocks are climbing today with Bitcoin (^BTCUSD) up more than +1%. Riot Platforms (RIOT) is up more than +9% and Mara Holdings (MARA) is up more than +8%. Also, Galaxy Digital Holdings (GLXY) is up more than +7% and Strategy (MSTR) and Coinbase Global (COIN) are up more than +2%.
Insurance stocks are under pressure today. Progressive (PGR) is down more than -7% to lead losers in the S&P 500. Also, Erie Indemnity (ERIE) is down more than -3%, and Allstate (ALL), American International Group (AIG), Hartford International Group (HIG), and Travelers (TRV) are down more than -1%.
Sable Offshore (SOC) is up more than +17% after a federal appeals court said the company can restart its California pipeline and can begin pumping oil from its three platforms off the coast of Santa Barbara, California.
RH (RH) is up more than +6%, and Wayfair (W) is up more than +5% after President Trump delayed tariff increases on upholstered furniture until next year.
Vertiv Holdings (VRT) is up more than +8% after Barclays upgraded the stock to overweight from equal weight with a price target of $200.
Earnings Reports(1/2/2026)
Lifecore Biomedical (LFCR).
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.

Stocks Give Up Early Gains as Megacap Tech Shares Fall

The S&P 500 Index ($SPX) (SPY) today is up +0.62%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.10%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.16%. March E-mini S&P futures (ESH26) are up +0.59%, and March E-mini Nasdaq futures (NQH26) are up +1.14%.
Stock indexes are moving higher today, led by strength in chip makers, megacap technology stocks, and AI-infrastructure companies. Also, strength in European stocks today is providing carryover support to US equity markets after the Euro Stoxx 50 rallied to a new record high.
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Higher bond yields are a negative factor for stocks as the 10-year T-note yield climbed to a 1.5-week high today at 4.19%.
The US Dec S&P manufacturing PMI was kept unrevised at 51.8, right on expectations.
The markets are discounting the odds at 15% for a -25 bp rate cut at the FOMC’s next meeting on January 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 rallied to a new all-time high and is up by +0.99%. China’s Shanghai Composite and Japan’s Nikkei Stock 225 are closed today for the New Year’s Day holidays.
Interest Rates
March 10-year T-notes (ZNH6) are down -2 ticks. The 10-year T-note yield is up +0.8 bp to 4.163%. Mar T-notes fell to a 1.5-week low today, and the 10-year T-note yield rose to a 1.5-week high of 4.191%. T-notes are modestly lower today as stock market strength has reduced safe-haven demand for government debt securities. Also, rising inflation expectations are weighing on T-notes as the 10-year breakeven inflation rate rose to a 2.5-week high today at 2.259%.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 1.5-week high of 2.910% and is up +3.0 bp to 2.885%. The 10-year UK gilt climbed to a 1.5-week high of 4.530% and is up +3.2 bp to 4.511%.
The Eurozone Dec S&P manufacturing PMI was revised downward by -0.4 to 48.4 from the previously reported 49.2.
The Eurozone Nov M3 money supply rose +3.0% y/y, stronger than expectations of +2.7% y/y and the highest in four months.
The UK Dec S&P manufacturing PMI was revised downward by -0.6 to 50.6 from the previously reported 51.2.
Swaps are discounting a 1% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI-infrastructure stocks are moving higher today to lead the overall market higher. Sandisk (SNDK) is up more than +8% to lead gainers in the S&P 500, and ASML Holding NV (ASML) is up more than +7% to lead gainers in the Nasdaq 100 after Alethia Capital double-upgraded the stock to buy from sell with a price target of $1,500. Also, Micron Technology (MU) is up more than +7%, and Lam Research (LRCX) is up more than +6%. In addition, Applied Materials (AMAT), ARM Holdings Plc (ARM), KLA Corp (KLAC), Advanced Micro Devices (AMD), and Intel (INTC) are up more than +4%, and Western Digital (WDC), Marvell Technology (MRVL), Seagate Technology Holdings (STX), and Broadcom (AVGO) are up more than +3%.
The Magnificent Seven stocks are climbing today, helping lift the broader market. Nvidia (NVDA) and Alphabet (GOOGL) are up more than +2%, and Amazon.com (AMZN) and Apple (AAPL) are up more than +1%. Also, Tesla (TSLA) is up +0.31%. Bucking the trend, Microsoft (MSFT) is down -0.67% and Meta Platforms (META) is down -0.57%.
Insurance stocks are under pressure today. Progressive (PGR) is down more than -7% to lead losers in the S&P 500. Also, Erie Indemnity (ERIE) is down more than -2%, and Allstate (ALL), Hartford Insurance Group (HIG), Arthur J. Gallagher & Co. (AJG), and Travelers (TRV) are down more than -1%.
Sable Offshore (SOC) is up more than +18% after a federal appeals court said the company can restart its California pipeline and can begin pumping oil from its three platforms off the coast of Santa Barbara, California.
RH (RH) is up more than +7%, and Wayfair (W) is up more than +5% after President Trump delayed tariff increases on upholstered furniture until next year.
Vertiv Holdings (VRT) is up more than +7% after Barclays upgraded the stock to overweight from equal weight with a price target of $200.
Earnings Reports(1/2/2026)
Lifecore Biomedical (LFCR).
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.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Climb on Strength in Chip Makers and AI-Infrastructure Companies

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -0.74%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.63%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.84%. March E-mini S&P futures (ESH26) fell -0.71%, and March E-mini Nasdaq futures (NQH26) fell -0.89%.
Stock indexes retreated on Wednesday, with the S&P 500, the Dow Jones Industrial Average, and the Nasdaq 100 sliding to 1.5-week lows. The weakness in chip stocks and data storage companies led the broader market lower on the last trading day of the year. Also, mining stocks slid on Wednesday, with gold prices falling to a 2.5-week low and silver prices plunging more than -9%. In addition, higher bond yields are negative for stocks, as the 10-year T-note yield climbed +4 bp to 4.16% after weekly jobless claims unexpectedly fell to a 1-month low, a hawkish factor for Fed policy.
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Trading activity was subdued on Wednesday, with volumes well below normal, as markets in Germany and Japan were closed for the New Year's holiday.
US weekly initial unemployment claims unexpectedly fell -16,000 to a 1-month low of 199,000, showing a stronger labor market than expectations of an increase to 218,000.
Wednesday's better-than-expected Chinese economic news is supportive of global growth prospects. The China Dec manufacturing PMI rose +0.9 to 50.1, stronger than expectations of no change at 49.2 and the fastest pace of expansion in 9 months. Also, the Dec non-manufacturing PMI rose +0.7 to 50.2, stronger than expectations of 49.6.
Seasonal factors are bullish for stocks. According to data from Citadel Securities, since 1928, the S&P 500 has risen 75% of the time in the last two weeks of December, climbing 1.3% on average.
Market attention this holiday-shortened week will focus on US economic news. On Friday, the Dec S&P manufacturing PMI is expected to remain unrevised at 51.8.
The markets are discounting the odds at 15% for a -25 bp rate cut at the FOMC's next meeting on January 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed down -0.08%. China's Shanghai Composite closed up +0.09%. Japan's Nikkei Stock 225 is closed for a bank holiday.
Interest Rates
March 10-year T-notes (ZNH6) on Wednesday closed down -6.5 ticks. The 10-year T-note yield rose +3.3 bp to 4.155%. Mar T-notes gave up an early advance on Wednesday and turned lower after US weekly jobless claims unexpectedly fell to a 1-month low, a sign of labor market strength that is hawkish for Fed policy. The weakness in stocks on Wednesday boosted some safe-haven demand for government debt and limited losses in T-notes.
European government bond yields moved lower on Wednesday. The 10-year German bund yield is not trading today, with German markets closed for the New Year's holiday. The 10-year UK gilt yield fell -1.9 bp to 4.479%.
Swaps are discounting a 1% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and data storage companies were under pressure on Wednesday, leading the overall market lower. Micron Technology (MU), KLA Corp (KLAC), and Western Digital (WDC) closed down more than -2%. Also, Marvell Technology (MRVL), Seagate Technology Holdings (STX), Lam Research (LRCX), Microchip Technology (MCHP), Applied Materials (AMAT), Qualcomm (QCOM), and ARM Holdings Plc (ARM) closed down more than -1%.
The Magnificent Seven stocks settled lower, weighing on the broader market. Tesla (TSLA) closed down -1.04%, Meta Platforms (META) closed down -0.88%, Microsoft (MSFT) closed down -0.79%, Amazon.com (AMZN) closed down -0.74%, Nvidia (NVDA) closed down -0.55%, (AAPL) closed down -0.38%, and Alphabet (GOOGL) closed down -0.27%.
Mining companies retreated on Wednesday after gold prices fell to a 2.5-week low and silver prices plunged more than -9%. Newmont (NEM), Barrick Mining (B), Freeport-McMoRan (FCX), Coeur Mining (CDE), and Hecla Mining (HL) closed down more than -1%.
Corcept Therapeutics (CORT) closed down by more than -49% after the FDA rejected the company's relacorliant drug as a treatment for patients with hypertension secondary to hypercortisolism, saying it could not reach a favorable benefit-risk assessment without additional effectiveness data.
GlobalFoundries (GFS) closed down more than -3% after Wedbush downgraded the stock to neutral from outperform.
Vanda Pharmaceuticals (VNDA) closed up more than +25% after the FDA approved the company's Nereus drug for the prevention of vomiting induced by motion.
Nike (NKE) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials on signs of insider buying after an SEC filing showed CEO Hill purchased about $1 million worth of shares on Monday.
Terawulf Inc (WULF) closed up more than +3% after Keefe, Bruyette & Woods upgraded the stock to outperform from market perform with a price target of $24.
Earnings Reports(1/2/2026)
Lifecore Biomedical (LFCR).
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.

Stocks Settle Lower on Tech Weakness and Higher Bond Yields

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $3.4 billion dollar outflow -- that's a 4.8% decrease week over week (from 566,900,000 to 539,900,000). Among the largest underlying components of IVW, in trading today Applied Materials, Inc. (Symbol: AMAT) is off about 0.5%, Arista Networks Inc (Symbol: ANET) is down about 0.5%, and Morgan Stanley (Symbol: MS) is lower by about 0.7%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $79.31 per share, with $126.605 as the 52 week high point — that compares with a last trade of $124.18. 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.
Also see:
JDST Split History
ECEZ Options Chain
WLL Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Outflow Detected - IVW, AMAT, ANET, MS

The following are the top rated Information Technology stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Warren Buffett is 100% 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: Adobe Inc. is a global technology company. The Company's products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers. The Digital Experience segment provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud. The Publishing and Advertising segment contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities and intelligent automation.
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 ADOBE INC
APPLIED MATERIALS INC (AMAT) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 100% 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
LAM RESEARCH CORP (LRCX) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 86% 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: Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas, such as nanoscale applications enablement, chemistry, plasma and fluidics, 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 LAM RESEARCH CORP
ASML HOLDING NV (ADR) (ASML) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 86% 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: ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
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 ASML HOLDING NV (ADR)
KLA CORP (KLAC) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 86% 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: KLA Corporation is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of inspection and metrology products, and related services, software and other offerings, supports research and development (R&D) and manufacturing of integrated circuits (ICs), wafers and reticles. Its segments include Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. Semiconductor Process Control segment provides comprehensive portfolio of inspection, metrology and software products, as well as related services, helping IC, wafer, reticle/mask and chemical/materials manufacturers achieve target yields throughout the entire fabrication process, from R&D to final volume production. The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etch process tools, which are used by a range of specialty semiconductor customers.
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 KLA CORP
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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 Warren Buffett - 12/29/2025

For Immediate Release
Chicago, IL – December 29, 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: Micron Technology MU, Applied Materials AMAT, Salesforce CRM and Cisco Systems CSCO.
Here are highlights from Friday’s Analyst Blog:
Uncover 4 Undervalued Tech Giants Before They Skyrocket in 2026
The technology sector continues to dominate the U.S. stock market, driving exceptional stock performance in 2025. Tech companies across industries witnessed a volatile 2025 owing to growing geopolitical unrest worldwide, supply chain issues and macro headwinds in some regions. However, despite growing energy prices, the overall annual inflation rate in 2025 was lower than expected in US. Moreover, consumer resilience in some end markets and growing capex spending by organizations effectively offset the negative effects.
The Computer and Technology group has surged 27.8% in 2025 so far, outperforming the S&P 500 index’s growth of 20%. The Nasdaq Composite index, where tech stocks account for more than 50%, has rose 21% so far in 2025. Despite this growth, several mega-cap tech stocks continue to trade at a discounted valuation multiple compared to these industries.
Based on strong fundamentals, growing AI integration and spending on digital transformation, we have shortlisted four tech stocks that have strong growth potential in 2026. These stocks are Micron Technology, Applied Materials, Salesforce and Cisco Systems.
Key Factors
Investment in AI Infrastructure: AI is no longer just an experimental tool in the business world. It has become an essential component for gaining a competitive advantage in the rapidly evolving tech sector. In 2025, the industry witnessed widespread enterprise integration of AI, and in 2026, this trend is expected to accelerate, backed by multiple factors.
From supply chain optimization, warehouse automation, to optimizing product lines, AI is being increasingly deployed by manufacturing sector companies to support these operations. Moreover, the telecommunications industry is also witnessing a surge in AI use cases. Governments worldwide are pushing for network expansion in rural and remote areas to bridge the digital divide and facilitate advanced use cases such as remote healthcare, financial services and other applications.
Telecom service providers are developing AI-powered tools to enhance network management, reduce instances of network outage and enhance customer services. Social ecommerce companies such as Pinterest and META are rapidly incorporating AI models to understand user behavior, predict emerging trends and help content creators better reach their target market.
Along with developing advanced AI products, organizations are also using AI to drive efficiency across their internal processes. Enterprises across sectors such as healthcare, automotive, communication, finance, and retail are increasing their spending on AI infrastructure. This presents a solid growth opportunity for Tech giants with a strong AI native portfolio offering.
Solid Traction in Semiconductor and Data Center Markets: The companies are generating a large pool of information from their day-to-day operations. Competitive edge in today’s digital world depends on real-time analytics of that vast information, which helps organizations to make informed decisions. Hence, businesses worldwide are rushing to develop high-performance computing infrastructure and utilize AI data centers.
These AI-driven computing requirements are driving investments in data centers and cloud platforms. Per Grandview Research, the AI data center market is expected to reach $60.49 billion in 2030 from $13.62 billion in 2025, with a compound annual growth rate of 28.3%.
The AI buildouts are also reshaping the semiconductor industry. The AI ecosystem is evolving rapidly. The focus is shifting from training big AI models with a large amount of data to AI inference workloads, that is, actually using the AI models in real time for various tasks. Semiconductor companies are readjusting their strategy to match these requirements.
Key Picks
Idaho-based Micron Technology has established itself as one of the leading providers of semiconductor memory solutions. Micron is strengthening its industry partnerships to capitalize on AI and data center growth. The company is actively engaged in long-term agreements with NVIDIA, AMD and Intel, enabling Micron to capture a larger share of the AI infrastructure market. It is expanding its foothold in the SSD storage market. The emergence of thinner laptops and tablets over the past few years has created ideal market conditions for SSDs, which are now entering the higher end of the market.
Strong customer interest in its leading-edge HBM3E portfolio is expected to drive substantial revenue growth in the quarters ahead. As companies continue to build out GPU clusters and AI data centers that require advanced memory solutions, this presents a solid growth opportunity for Micron.
From a valuation standpoint, Micron trades at a forward price-to-earnings ratio of 12.17, lower than the 17.23 for the Computer - Integrated Systems. With an average broker recommendation (ABR) of 1.351, the stock has gained 240.6% over the past year. Earnings estimate for MU has improved 113.14% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 52.06% and delivered an earnings surprise of 14.35%, on average, in the trailing four quarters. Micron sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Santa Clara, CA, Applied Materials is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules. Applied Materials is at the forefront of artificial intelligence (AI)-driven semiconductor innovations.
It is well-positioned to capitalize on the growing demand for ICAPS (IoT, Communications, Automotive, Power and Sensors) technologies, a market segment experiencing rapid expansion driven by AI, electrification and automation trends. Moreover, the emergence of data centers will continue to be a major contributor to the company's top-line growth, with the growing demand for Dynamic Random Access Memory by the cloud service providers.
From a valuation standpoint, AMAT trades at a forward price-to-earnings ratio of 26.56, lower than the 34.54 for the Electronics - Semiconductors. With an ABR of 1.897, the stock has gained 56.3% over the past year. Earnings estimate for AMAT has improved 6.42% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 10.11% and delivered an earnings surprise of 4.17%, on average, in the trailing four quarters. AMAT carries a Zacks Rank #3 (Hold) at present.
Headquartered in San Francisco, Salesforce, Inc. is the leading provider of on-demand Customer Relationship Management (“CRM”) software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The company is steadily expanding its generative AI offerings. The company has recently completed the acquisition of Informatica, adding the company’s AI-powered cloud data management capabilities to the Salesforce platform.
Its ability to provide an integrated solution for customers’ business problems is the key growth driver. With its SaaS-based CRM and social enterprise applications, we think that Salesforce is well-positioned to lead the market.
From a valuation standpoint, Salesforce trades at a forward price-to-sales ratio of 5.47, lower than the 7.58 for the Computer - Software. With an ABR of 1.6, the stock has declined 21.3% over the past year. Earnings estimates for the company have improved 2.22% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 15.04% and delivered an earnings surprise of 6.9%, on average, in the trailing four quarters. Salesforce carries a Zacks Rank #3 (Hold) at present.
Headquartered in San Jose, CA, Cisco offers identity and access, advanced threat, and unified threat management solutions. It is rapidly expanding its presence in the network security domain. Its AI portfolio for data centers with new solutions like the Unified Nexus Dashboard, Cisco Intelligent Packet Flow, configurable AI PODs, and 400G bidirectional (BiDi) optics are expected to gain solid market traction in upcoming quarters.
From a valuation standpoint, Cisco trades at a forward price-to-earnings ratio of 18.48, lower than the 22.87 for the Computer - Networking. With an ABR of 1.854, the stock has increased 30% over the past year. Earnings estimate for CSCO has improved 1.38% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 8.02% and delivered an earnings surprise of 3.22%, on average, in the trailing four quarters. Cisco carries a Zacks Rank #3 at present.
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The Zacks Analyst Blog Highlights Micron, Applied Materials, Salesforce and Cisco Systems

The technology sector continues to dominate the U.S. stock market, driving exceptional stock performance in 2025. Tech companies across industries witnessed a volatile 2025 owing to growing geopolitical unrest worldwide, supply chain issues and macro headwinds in some regions. However, despite growing energy prices, the overall annual inflation rate in 2025 was lower than expected in US. Moreover, consumer resilience in some end markets and growing capex spending by organizations effectively offset the negative effects.
The Computer and Technology group has surged 27.8% in 2025 so far, outperforming the S&P 500 index’s growth of 20%. The Nasdaq Composite index, where tech stocks account for more than 50%, has rose 21% so far in 2025. Despite this growth, several mega-cap tech stocks continue to trade at a discounted valuation multiple compared to these industries. Based on strong fundamentals, growing AI integration and spending on digital transformation, we have shortlisted four tech stocks that have strong growth potential in 2026. These stocks are Micron Technology MU, Applied Materials AMAT, Salesforce CRM and Cisco Systems CSCO.
Key Factors
Investment in AI Infrastructure: AI is no longer just an experimental tool in the business world. It has become an essential component for gaining a competitive advantage in the rapidly evolving tech sector. In 2025, the industry witnessed widespread enterprise integration of AI, and in 2026, this trend is expected to accelerate, backed by multiple factors.
From supply chain optimization, warehouse automation, to optimizing product lines, AI is being increasingly deployed by manufacturing sector companies to support these operations. Moreover, the telecommunications industry is also witnessing a surge in AI use cases. Governments worldwide are pushing for network expansion in rural and remote areas to bridge the digital divide and facilitate advanced use cases such as remote healthcare, financial services and other applications.
Telecom service providers are developing AI-powered tools to enhance network management, reduce instances of network outage and enhance customer services. Social ecommerce companies such as Pinterest and META are rapidly incorporating AI models to understand user behavior, predict emerging trends and help content creators better reach their target market.
Along with developing advanced AI products, organizations are also using AI to drive efficiency across their internal processes. Enterprises across sectors such as healthcare, automotive, communication, finance, and retail are increasing their spending on AI infrastructure. This presents a solid growth opportunity for Tech giants with a strong AI native portfolio offering.
Solid Traction in Semiconductor and Data Center Markets: The companies are generating a large pool of information from their day-to-day operations. Competitive edge in today’s digital world depends on real-time analytics of that vast information, which helps organizations to make informed decisions. Hence, businesses worldwide are rushing to develop high-performance computing infrastructure and utilize AI data centers. These AI-driven computing requirements are driving investments in data centers and cloud platforms. Per Grandview Research, the AI data center market is expected to reach $60.49 billion in 2030 from $13.62 billion in 2025, with a compound annual growth rate of 28.3%.
The AI buildouts are also reshaping the semiconductor industry. The AI ecosystem is evolving rapidly. The focus is shifting from training big AI models with a large amount of data to AI inference workloads, that is, actually using the AI models in real time for various tasks. Semiconductor companies are readjusting their strategy to match these requirements.
Key Picks
Idaho-based Micron Technology has established itself as one of the leading providers of semiconductor memory solutions. Micron is strengthening its industry partnerships to capitalize on AI and data center growth. The company is actively engaged in long-term agreements with NVIDIA, AMD and Intel, enabling Micron to capture a larger share of the AI infrastructure market. It is expanding its foothold in the SSD storage market. The emergence of thinner laptops and tablets over the past few years has created ideal market conditions for SSDs, which are now entering the higher end of the market.
Strong customer interest in its leading-edge HBM3E portfolio is expected to drive substantial revenue growth in the quarters ahead. As companies continue to build out GPU clusters and AI data centers that require advanced memory solutions, this presents a solid growth opportunity for Micron.
From a valuation standpoint, Micron trades at a forward price-to-earnings ratio of 12.17, lower than the 17.23 for the Computer - Integrated Systems. With an average broker recommendation (ABR) of 1.351, the stock has gained 240.6% over the past year. Earnings estimate for MU has improved 113.14% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 52.06% and delivered an earnings surprise of 14.35%, on average, in the trailing four quarters. Micron sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology, Inc. Price, Consensus and EPS Surprise
Headquartered in Santa Clara, CA, Applied Materials is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays (LCDs), and solar photovoltaic (PV) cells and modules. Applied Materials is at the forefront of artificial intelligence (AI)-driven semiconductor innovations.
It is well-positioned to capitalize on the growing demand for ICAPS (IoT, Communications, Automotive, Power and Sensors) technologies, a market segment experiencing rapid expansion driven by AI, electrification and automation trends. Moreover, the emergence of data centers will continue to be a major contributor to the company's top-line growth, with the growing demand for Dynamic Random Access Memory by the cloud service providers.
From a valuation standpoint, AMAT trades at a forward price-to-earnings ratio of 26.56, lower than the 34.54 for the Electronics - Semiconductors. With an ABR of 1.897, the stock has gained 56.3% over the past year. Earnings estimate for AMAT has improved 6.42% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 10.11% and delivered an earnings surprise of 4.17%, on average, in the trailing four quarters. AMAT carries a Zacks Rank #3 (Hold) at present.
Applied Materials, Inc. Price, Consensus and EPS Surprise
Headquartered in San Francisco, Salesforce, Inc. is the leading provider of on-demand Customer Relationship Management (“CRM”) software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The company is steadily expanding its generative AI offerings. The company has recently completed the acquisition of Informatica, adding the company’s AI-powered cloud data management capabilities to the Salesforce platform.
Its ability to provide an integrated solution for customers’ business problems is the key growth driver. With its SaaS-based CRM and social enterprise applications, we think that Salesforce is well-positioned to lead the market.
From a valuation standpoint, Salesforce trades at a forward price-to-sales ratio of 5.47, lower than the 7.58 for the Computer - Software. With an ABR of 1.6, the stock has declined 21.3% over the past year. Earnings estimates for the company have improved 2.22% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 15.04% and delivered an earnings surprise of 6.9%, on average, in the trailing four quarters. Salesforce carries a Zacks Rank #3 (Hold) at present.
Salesforce Inc. Price, Consensus and EPS Surprise
Headquartered in San Jose, CA, Cisco offers identity and access, advanced threat, and unified threat management solutions. It is rapidly expanding its presence in the network security domain. Its AI portfolio for data centers with new solutions like the Unified Nexus Dashboard, Cisco Intelligent Packet Flow, configurable AI PODs, and 400G bidirectional (BiDi) optics are expected to gain solid market traction in upcoming quarters.
From a valuation standpoint, Cisco trades at a forward price-to-earnings ratio of 18.48, lower than the 22.87 for the Computer - Networking. With an ABR of 1.854, the stock has increased 30% over the past year. Earnings estimate for CSCO has improved 1.38% for 2026 over the past 60 days. It has a long-term earnings growth expectation of 8.02% and delivered an earnings surprise of 3.22%, on average, in the trailing four quarters. Cisco carries a Zacks Rank #3 at present.
Cisco Systems, Inc. Price, Consensus and EPS Surprise
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Uncover 4 Undervalued Tech Giants Before They Skyrocket in 2026

NVIDIA Corporation NVDA and Applied Materials, Inc. AMAT are two of the most important players riding on the global semiconductor and artificial intelligence (AI) boom. NVIDIA dominates the AI chip design market, powering data centers, cloud platforms and next-generation AI applications. Meanwhile, Applied Materials sits at the heart of chip manufacturing, supplying critical equipment used by foundries to produce advanced semiconductors.
Both companies are benefiting from the rise of AI, but their business models, risk profiles and long-term outlooks differ. Let’s break down how each company is performing and which one looks like the better investment right now.
The Case for NVDA Stock
NVIDIA remains the backbone of the AI boom, with its graphics processing units (GPUs) powering everything from cloud data centers to self-driving vehicles. The company continues to dominate the AI infrastructure market, driven by explosive demand from cloud providers and enterprises. In the third quarter of fiscal 2026, NVIDIA’s revenues surged 62% year over year to $57 billion, while earnings per share (EPS) jumped 60% to $1.30.
NVIDIA Corporation Price, Consensus and EPS Surprise
The company’s new GPU architectures, Hopper 300 and Blackwell, are rapidly gaining adoption as customers race to expand AI capabilities. The Blackwell Ultra and upcoming Vera Rubin platforms could further cement NVIDIA’s leadership as the AI hardware race intensifies.
NVIDIA’s most powerful growth engine continues to be its Data Center business. In the third quarter of fiscal 2026, the segment generated $51.22 billion in revenues, representing 89.8% of total sales. This marked a staggering 66% year-over-year increase and 25% sequential growth.
The robust performance was mainly driven by higher shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications.
NVIDIA’s partnership with OpenAI, which involves the construction of massive AI data centers powered by NVIDIA systems, is expected to boost long-term demand for its GPUs. The deal reinforces NVIDIA’s position as the dominant supplier of AI chips worldwide.
The Case for AMAT Stock
Applied Materials is a major manufacturer of semiconductor fabrication equipment, covering deposition, etching and inspection, serving the most crucial stages of chip manufacturing. AMAT is shining on the strong demand for its foundry-logic, DRAM and NAND products.
Applied Materials expects its leading-edge foundry, logic, DRAM and high-bandwidth memory (HBM) to be the fastest-growing wafer fabrication equipment businesses in 2026. AMAT’s advanced packaging business, which is currently valued at $1.5 billion, is still on track to double to $3 billion over the next few years, driven by HBM demand and next-generation packaging architectures.
Applied Materials has restructured its pricing program, which is expected to contribute most of the 120-basis point gross margin expansion expected for fiscal 2026. This cost restructuring will further provide AMAT with enough headroom to ramp up its research & development investments. AMAT is setting up the Equipment and Process Innovation and Commercialization center for research, which is expected to be operational by 2026.
Nonetheless, Applied Materials is grappling with some near-term challenges. A major headwind for AMAT 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.
Additionally, moderating growth at its IoT, Communications, Automotive, Power and Sensors segment after a strong 2023-2024 cycle is weighing on Applied Materials’ overall financial performance. In the last reported financial results for the fourth quarter of fiscal 2025, the company’s revenues and non-GAAP EPS declined 3% and 6%, respectively, year over year.
Applied Materials, Inc. Price, Consensus and EPS Surprise
NVDA vs. AMAT: Which Has the Stronger Growth Outlook?
Both companies will benefit from the surging demand for AI chips, but NVIDIA’s growth profile appears stronger in the near term. The Zacks Consensus Estimate for NVDA’s current fiscal-year 2026 revenues and earnings per share (EPS) indicates a year-over-year surge of 62% and 55.2%, respectively. For fiscal 2027, the top and bottom lines are projected to grow 42.2% and 52.9%, respectively.
By contrast, Applied Materials’ fiscal 2026 estimates point to mere 2% revenue growth and a 1.4% EPS increase. For fiscal 2027, the top and bottom lines are projected to rise 10.3% and 17.9%, respectively.
NVDA vs. AMAT: Price Performance & Valuation Check
NVIDIA shares have risen 34.7% year to date, while Applied Materials has soared 57.6%.
Image Source: Zacks Investment Research
On the valuation front, Applied Materials trades at a forward 12-month price-to-earnings (P/E) multiple of 26.18, slightly below NVIDIA’s 26.54.
Image Source: Zacks Investment Research
NVDA: A Better Investment Bet Than AMAT
Both NVIDIA and Applied Materials are high-quality semiconductor stocks benefiting from the AI boom. However, NVIDIA offers stronger growth momentum, clearer demand visibility and a deeper competitive moat in AI computing. Despite valuation risks, its leadership position makes NVDA the better investment option than AMAT right now for investors seeking higher growth potential.
NVDA sports a Zacks Rank #1 (Strong Buy), making it a clear winner over AMAT, which has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks 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.

NVDA vs. AMAT: Which Semiconductor Stock Is the Better Buy Now?

Lam Research Corporation LRCX has had a remarkable run so far this year, with its shares hitting a new 52-week high of $173.58 last Friday. The stock has been a key beneficiary of the artificial intelligence (AI) boom, which has driven strong demand for its wafer fabrication equipment, which is used in building advanced chips for AI applications.
Year to date, Lam Research shares have soared 138.5%, outperforming the Zacks Electronics – Semiconductors industry’s growth of 38.2%. It has even outpaced major semiconductor manufacturing tool providers, including KLA Corporation KLAC, Applied Materials, Inc. AMAT and ASML Holding ASML. Shares of KLA Corporation, Applied Materials and ASML Holding have risen 97.7%, 57.6% and 52.3%, respectively.
LRCX YTD Price Return Performance
Image Source: Zacks Investment Research
This outperformance shows investors are becoming increasingly confident in Lam Research’s long-term prospects, even in a volatile market shaped by trade conflicts and geopolitical risks. We believe that LRCX stock will sustain this upward trajectory at least in the near term, making it worth buying for now.
AI and Data Center Chip Demand Aids LRCX’s Momentum
Lam Research is benefiting from the booming demand for 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 growth opportunities for LRCX’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.
LRCX’s Strong Financial Performance
Despite ongoing macroeconomic challenges, geopolitical issues, and trade and tariff wars, Lam Research’s financials remain impressive. In the company’s last reported financial results for the first quarter of fiscal 2026, total revenues increased 28% year over year to $5.32 billion, surpassing the Zacks Consensus Estimate by 2%. The robust year-over-year growth was 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.
Analysts’ expectations for the 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 implies a year-over-year increase of 14.1% and 12.3%, respectively. The consensus mark for fiscal 2026 and 2027 earnings per share indicates growth of 15.7% and 16.5%, respectively.
Valuation: LRCX Still Reasonably Priced
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 33.34, which is slightly lower than the industry’s 33.80. 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 equipment providers, LRCX trades at a lower P/E multiple than ASML, while at a premium to KLAC and AMAT. At present, ASML Holding, KLA Corporation and Applied Materials have forward 12-month P/E multiples of 35.10, 32.46 and 26.18, respectively.
Final Thoughts: Buy LRCX Stock Right Now
Lam Research’s solid financial performance, strategic focus on AI-driven growth and reasonable valuation 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 carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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ASML Holding N.V. (ASML) : 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.

Lam Research Hits 52-Week High: Is the Stock Still Worth Buying?

The S&P 500 Index ($SPX) (SPY) on Friday closed up by +0.88%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +0.38%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +1.31%. March E-mini S&P futures (ESH26) rose +0.87%, and March E-mini Nasdaq futures (NQH26) rose +1.28%.
Stock indexes settled higher on Friday as a rally in cloud infrastructure stocks improved market sentiment and lifted the broader market. Oracle rose more than 7% after TikTok CEO Chew said his company has signed binding agreements to create a US joint venture owned by American investors, including Oracle. Also, strength in chipmakers on Friday helped lift the overall market.
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Friday’s US economic news was mixed for stocks after Nov existing home sales rose to a 9-month high, but the University of Michigan US Dec consumer sentiment index was unexpectedly revised lower.
Seasonal factors are bullish for stocks. According to data from Citadel Securities, since 1928, the S&P 500 has risen 75% of the time in the last two weeks of December, climbing 1.3% on average.
Higher bond yields limited gains in stocks on Friday, as the 10-year T-note yield rose +2 bp to 4.15%. Global bond yields rose on Friday, led by a surge in the 10-year Japanese government bond yield to a 26-year high of 2.025% after the BOJ raised interest rates and said it will keep raising rates if its economic and price outlook is realized.
US Nov existing home sales rose +0.5% m/m to a 9-month high of 4.13 million, though weaker than expectations of 4.15 million.
The University of Michigan US Dec consumer sentiment index was unexpectedly revised downward by -0.4 to 52.9, weaker than expectations of an upward revision to 53.5.
The University of Michigan US Dec 1-year inflation expectations were unexpectedly revised upward to 4.2% from the previously reported 4.1%.
Upbeat comments on Friday from New York Fed President John Williams were supportive for stocks but negative for bonds, as he said some of the data we're seeing is "pretty encouraging" and he sees no sign of a sharp deterioration in the jobs data. He added that he sees US GDP growth of 1.5% to 1.75% this year, with growth picking up next year, and that there's "no urgency to need to act further on monetary policy right now, because I think the cuts we've made have positioned us really well."
Stock market moves may have been exaggerated and more volatile than usual on Friday due to the expiration of options, futures, and derivatives during the quarterly event known as triple witching. According to Citigroup, a record $7.1 trillion of notional open interest will roll off the US options market on Friday.
The markets are discounting a 22% chance that the FOMC will cut the fed funds target range by 25 bp at the next FOMC meeting on January 27-28.
Overseas stock markets settled higher on Friday. The Euro Stoxx 50 closed up +0.32%. China’s Shanghai Composite climbed to a 1-week high and closed up +0.36%. Japan’s Nikkei Stock 225 closed up +1.03%.
Interest Rates
March 10-year T-notes (ZNH6) on Friday closed down by -8 ticks. The 10-year T-note yield rose +2.7 bp to 4.149%. Friday's stock rally reduced safe-haven demand for government debt securities and weighed on T-notes. Also, hawkish comments from New York Fed President John Williams undercut T-note prices when he said some of the data we're seeing is "pretty encouraging" and that he sees no sign of sharp deterioration in the jobs data. In addition, T-notes had a negative carryover from Friday’s jump in the 10-year Japan government bond yield to a 26-year high of 2.025%.
The steepening yield curve is also bearish for T-note prices. Steepening trades occur when bond investors buy short-term government debt and sell long-term debt. The yield curve has steepened since last Wednesday’s FOMC meeting, when the Fed said it would begin purchasing up to $40 billion of short-term T-bills a month to boost liquidity in the financial system. Longer-term Treasury securities are also under pressure from concerns about inflation and the Fed’s independence.
European government bond yields moved higher on Friday. The 10-year German bund yield rose to a 9-month high of 2.899% and finished up +4.6 bp at 2.895%. The 10-year UK gilt yield rose +4.3 bp to 4.524%.
German Nov PPI fell -2.3% y/y, weaker than expectations of -2.2% y/y and the steepest pace of decline in 20 months.
The German GfK consumer confidence index unexpectedly fell by -3.5 points to a 1.75-year low of -26.9, weaker than expectations of an increase to -23.0.
ECB Governing Council member Pierre Wunsch said the ECB can leave interest rates untouched for some time if the predictions in its latest outlook on the economy and prices pan out.
UK Nov retail sales ex-auto fuel unexpectedly fell -0.2% m/m, weaker than expectations of an increase of +0.1% m/m.
Swaps are discounting a 0% chance for a -25 bp rate cut by the ECB at its next policy meeting on February 5.
US Stock Movers
Cloud infrastructure stocks rallied sharply on Friday, recovering from a recent sell-off driven by financing concerns in the AI supply chain. CoreWeave (CRWV) closed up +23%, Applied Digital (APLD) closed up +16%, and Nebius Group NV (NBIS) closed up more than +15%. Also, Oracle (ORCL) closed up more than +7%.
Chip stocks are moving higher today, a supportive factor for the overall market. Micron Technology (MU) closed up +7% to lead gainers in the Nasdaq 100, and Advanced Micro Devices (AMD) closed up more than +6%. Also, Lam Research (LRCX) closed up more than +4%, and Nvidia (NVDA) closed up more than +3% to lead gainers in the Dow Jones Industrials. In addition, Broadcom (AVGO) closed up more than +3%, and KLA Corp (KLAC), NXP Semiconductors NV (NXPI), Intel (INTC), Microchip Technology (MCHP), Applied Materials (AMAT), ASML Holding NV (ASML), and GlobalFoundries (GFS) closed up more than +1%.
Cryptocurrency-exposed stocks moved higher on Friday, as Bitcoin (^BTCUSD) rose more than +2%. Riot Platforms (RIOT) closed up more than +8%, and Galaxy Digital Holdings (GLXY) closed up more than +6%. Also, Mara Holdings (MARA) closed up more than +4%, and Strategy (MSTR) closed up more than +3%. In addition, Coinbase Global (COIN) closed up more than +2%.
Whitefiber Inc (WYFI) closed up more than +18% following the announcement of a 10-year 40 megawatt co-location agreement between its subsidiary Enovum Data Centers Corp. and Nscale Global Holdings, representing around $865 million in contracted revenue.
Carnival (CCL) closed up more than +9% to lead cruise stocks higher and gainers in the S&P 500 after reporting Q2 adjusted EPS of 34 cents, better than the consensus of 24 cents. Also, Norwegian Cruise Line Holdings (NCLH) closed up more than +6%, and Royal Caribbean Cruises Ltd (RCL) closed up more than +2%.
FactSet Research Systems (FDS) closed up more than +5% after Huber Research Partners double-upgraded the stock to overweight from underweight with a price target of $326.
Amphenol (APH) closed up more than +4% after Truist Securities raised its price target on the stock to $180 from $147.
Cummins Inc (CMI) closed up more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $546.
Generac Holdings (GNRC) closed up more than +1% after Wells Fargo Securities upgraded the stock to overweight from equal weight with a price target of $195.
Lamb Weston Holdings (LW) closed down more than -25% to lead losers in the S&P 500 after forecasting full-year net sales of $6.35 billion to $6.55 billion, the midpoint below the consensus of $6.52 billion.
Nike (NKE) closed down more than -10% to lead losers in the Dow Jones Industrials after forecasting Q3 revenue down in the low single digits and gross margins down about 175 to 225 basis points, amid persistent weakness in China.
KB Home (KBH) closed down more than -8% to lead homebuilders lower after reporting Q4 EPS of $1.55, weaker than the consensus of $1.79, and forecasting 2026 housing revenue of $5.10 billion to $6.10 billion, the midpoint below the consensus of $5.83 billion. Also, DR Horton (DHI) closed down more than -1%, and PulteGroup (PHM) closed down more than -1%.
KBR Inc (KBR) closed down more than -5% after Truist Securities cut its price target on the stock to $50 from $62.
Conagra Brands (CAG) closed down more than -2% after reporting Q2 organic sales fell -3%, a steeper decline than expectations of -2.42%.
Lyft Inc (LYFT) closed down more than -2% after Wedbush Securities downgraded the stock to underperform from neutral with a price target of $16.
Paychex (PAYX) closed down more than -1% after BMO Capital Markets said the company’s Q2 earnings signaled an “okay quarter,” but management-solutions growth was softer.
Earnings Reports(12/22/2025)
Barnes & Noble Education Inc (BNED) and Rezolve AI PLC (RZLV).
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.

Indicator	TTM Median
P/E	18.86 30.65
Price/Sales	4.52 2.64
P/B	6.47 2.80
P/FCF	22.01 24.21

Indicator	TTM Median
ROE	35.91 15.45
ROA	20.15 6.61
ROI	27.90 9.72
Net Worth	126.91 1.05
Quick Ratio	1.77 1.55
Current Ratio	2.50 1.86

Indicator	TTM Median
Net Profit Margin	23.88 9.57
Operating Margin	30.14 11.23
Gross Margin	48.50 49.59
Return on tangible equity	45.45 30.93

Indicator	TTM Median
EPS	2.48 0.24
EPS Forecast	2.34 0.21
Revenue	7.30B 73.50M
Gross Profit	3.56B —
EBITDA	2.35B —

Applied Materials, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue