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Why Applied Materials (AMAT) Stock Is Trading Up Today

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

AMAT Cover Image

What Happened?

Shares of semiconductor machinery manufacturer Applied Materials (NASDAQ: AMAT) jumped 4.1% in the afternoon session after positive analyst sentiment became more widespread, with a strong consensus buy rating from multiple research firms. The positive view was supported by reports from 24 to 28 different analysts who covered the stock. More specifically, recent ratings from firms including Barclays, Mizuho, and B of A Securities indicated a potential upside for the company. The average price target from these three recent ratings suggested an approximate 8% increase from the stock's previous trading price. This collective optimism from financial analysts appeared to boost investor confidence in the semiconductor equipment maker.

After the initial pop the shares cooled down to $229.18, up 3.9% from previous close.

Is now the time to buy Applied Materials? Access our full analysis report here.

What Is The Market Telling Us

Applied Materials’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 10 days ago when the stock gained 4.4% on the news that several Wall Street analysts signaled increased confidence in the semiconductor company, leading to a rating upgrade and higher price targets. Morgan Stanley upgraded its rating on the stock to "Overweight" and set a price target of $209. In addition, Stifel maintained its "Buy" rating and lifted its price target to $215 from a previous $180. Needham also showed optimism by keeping its "Buy" rating and increasing its price target on Applied Materials to $260 from $240. These actions from financial analysts reflected a bullish view on the company's future performance and its position within the technology sector.

Applied Materials is up 39.9% since the beginning of the year, and at $229.18 per share, has set a new 52-week high. Investors who bought $1,000 worth of Applied Materials’s shares 5 years ago would now be looking at an investment worth $3,760.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.

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