Applied Materials Inc
Applied Materials Inc
IBD Stock Analysis
- AMAT stock broke out of flat base at 159.10 buy point
- Ranks No. 13 out of 32 stocks in its industry group
- Has 97 Composite Rating, 93 Relative Strength Rating
Industry Group Ranking
* Not real-time data. All data shown was captured at
12:58PM EST on
Applied Materials (AMAT) is the IBD Stock Of The Day as the major semiconductor equipment supplier is seen having solid prospects in the year ahead. AMAT stock was in a buy zone on Tuesday.
On Monday, AMAT stock broke out of a six-week flat base at a buy point of 159.10, according to IBD MarketSmith charts. The 5% buy zone extends to 167.06, based on IBD trading principles.
However, on Tuesday, AMAT stock fell back to the buy point of its breakout. Applied Materials shares ended the regular session down 1.9% to 159.64. Earlier in the session, it reached an all-time high 162.99.
Earlier this month, Cowen analyst Krish Sankar named AMAT stock as a “top pick for 2022.” He rates Applied Materials stock as outperform with a price target of 190.
Setup Looks Bright For AMAT Stock
“The setup looks bright for AMAT” because of continued growth in spending on wafer fabrication equipment, Sankar said in a note to clients. Applied Materials is well positioned as chipmakers invest in semiconductor capital equipment to support new factories amid widespread chip shortages, he said.
“We believe product momentum should help AMAT ride the waves of memory and foundry/logic (chip) spending,” Sankar said.
Applied Materials supplies equipment to major chipmakers including foundries Taiwan Semiconductor Manufacturing (TSM) and Samsung.
Late on Nov. 18, Applied Materials missed Wall Street’s targets for its fiscal fourth quarter ended Oct. 31. The Santa Clara, Calif.-based company blamed supply-chain challenges for its underperformance. AMAT stock dropped more than 5% the day after the report.
Applied Materials Ranks 13th In Group
AMAT stock ranks No. 13 out of 32 stocks in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 97 out of 99. The semiconductor equipment group ranks No. 16 out of 197 industry groups that IBD tracks.
Applied Materials stock has an IBD Relative Strength Rating of 93 out of 99. That puts it in the top 7% of stocks for performance over the past 12 months.
AMAT stock is on the IBD 50 list of top-performing growth stocks. It also is on the IBD Stock Spotlight watchlist.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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