Applied Materials, Inc. (AMAT)

Applied Materials' stock price has been influenced by several key events in the past six months. The stock experienced a 9.2% drop following the release of its Q3 results and lower-than-expected Q1 revenue guidance. Applied Materials reported record non-GAAP earnings per share and a 7% year-over-year increase in total net sales. Jefferies upgraded its outlook for AMAT from Hold to Buy. The company announced strong Q2 2025 results, with 7% year-over-year revenue growth and record earnings per share, leading to a 15% increase in its dividend and the approval of an additional $10 billion share repurchase authorization; however, the stock declined 5.3% the day after the announcement due to concerns about weaker demand. Morgan Stanley upgraded its outlook for AMAT from Underweight to Equal-Weight. The stock fell 3.8% due to a warning from ASML regarding potential growth uncertainty in 2026. Needham raised its price target to $240 from $195 while maintaining a Buy rating, Goldman Sachs initiated coverage with a Buy rating and a $225 price target, and Redburn Atlantic downgraded its outlook for AMAT from Buy to Neutral. Overall, the stock has seen a 10.40% rise in the month leading up to July 2025.

Demand for Applied Materials' products and services is influenced by the cyclical nature of the semiconductor and display industries. A significant driver is the end-demand for mobile consumer products, which is characterized by seasonality. This seasonality directly impacts the timing of customer investments in manufacturing equipment, and consequently, Applied Materials' business. The company's investment needs can also exhibit seasonal fluctuations.

Applied Materials, Inc. is a global leader in materials engineering solutions, providing essential equipment, services, and software to the semiconductor, display, and related industries. The company develops, manufactures, and sells manufacturing equipment used to fabricate semiconductor chips, flat panel displays, and solar products. It offers services such as equipment maintenance, process optimization, and factory automation software. The company is organized into three main business segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.

Applied Materials maintains a robust global presence with operations spanning North America, Europe, and Asia, including the United States, China, Korea, Taiwan, and Japan. This network includes R&D centers, manufacturing facilities, sales offices, and service hubs. Approximately 78% of Applied Materials' net sales are generated from regions outside of the United States.

Applied Materials maintains a strong brand reputation, recognized for its market leadership, innovation, and commitment to sustainability. The company has been listed on various "best companies" lists by Forbes in 2025 and 2024. Sustainalytics rates Applied Materials with a "Moderate" highest controversy level, specifically noting "Incidents: Society & Community", while The Upright Project highlights Applied Materials' significant positive impact in categories such as Taxes, Societal infrastructure, and Knowledge infrastructure. The company also acknowledges negative impacts related to GHG emissions, scarce human capital, and scarce natural resources.

Applied Materials, Inc. is owned by a diverse range of institutional and individual shareholders, including BlackRock, Inc., Vanguard Group Inc, State Street Corp, Geode Capital Management, Llc, Invesco Qqq Trust, Series 1, Capital International Investors, Capital World Investors, and FXAIX - Fidelity 500 Index Fund. Institutional investors collectively hold approximately 53.16% of the company's shares, 46.46% is held by public companies and individual investors, and 0.38% is held by insiders.