Applied Materials (AMAT) Stock

At the end of the last trading day, Applied Materials (AMAT) was priced at $163.87, which represents a 0.76% increase compared to the previous day.

Delaware Funds by Macquarie, an investment management firm, published its Q3 2024 investor letter for the "Delaware Ivy Core Equity Fund." You can download the letter here. The S&P 500® Index increased by 5.9% in the third quarter, showing ongoing growth in the US large-cap equity market.

Applied Materials' stock has fallen by 22% since my last update, but I still think that the demand for AI-driven DRAM will help the company grow, making it a good investment. New AI models, such as OpenAI's o3, need more memory, which increases the demand for DRAM and boosts Applied Materials' sales of manufacturing equipment. Even though Wall Street is pessimistic, Applied Materials is valued 32% lower than the average in its sector, while its expected revenue growth is 10% higher.

Recently, Zacks.com users have shown a lot of interest in Applied Materials (AMAT). As a result, it's important to understand the factors that could affect the stock's future performance.

Applied Materials (AMAT 1.33%) is one of the rare AI-related stocks that has seen a decline this year. Currently, its shares have dropped 37% from their peak value.

Applied Materials' stock has remained relatively stable over the past year, showing little change in returns. The decline in consumer demand is leading to temporary challenges as original equipment manufacturers reduce their orders from fabrication plants. However, AMAT's strong market presence and financial health suggest it is a promising long-term investment in the semiconductor industry.

Applied Materials' stock price has dropped significantly, entering a technical bear market after a decline of more than 33% from its peak this year. The stock was trading at $170, which is its lowest point since February 5, indicating that it has lost most of the gains achieved earlier in the year.

Applied Materials (AMAT 0.16%) has been a strong performer in the stock market over the long term, but it has dropped considerably from its peak levels.

As the S&P 500 and Nasdaq Composite approach their highest levels ever, some investors may hesitate to buy new stocks. Warren Buffett once advised investors to "be cautious when others are overly confident and confident when others are scared," and currently, a lot of greed is pushing many stocks to record valuations.