Applied Materials (AMAT) Hits New All-Time Highs: Still Time to Buy Stock in the AI Chip Equipment Leader? - Yahoo Finance

Applied Materials (AMAT) has hit new all-time highs, reaching $739 per share, with a year-to-date gain of nearly 200%, making it one of the standout tech stocks. The surge is driven by growing investo... Read original →

Applied Materials’ surge to $739 reflects investor conviction in its irreplaceable role in AI-driven chip equipment. Technically, its leadership in advanced logic, DRAM, and packaging is accelerating sub-3nm ramp-ups at TSMC (Taiwan, China) and Samsung, pressuring upstream material suppliers on purity and lead times. Geopolitically, U.S. export controls force AMAT to restructure China support operations—raising near-term compliance costs but solidifying pricing power elsewhere. Rivals like Lam Research and ASML will counter with intensified R&D in post-EUV processes, while Micron and Qualcomm may lock in AMAT capacity to secure AI chip supply chains. Over the next 18 months, AI infrastructure capex remains robust; AMAT’s 57x P/E is justified by upward EPS revisions—yet the real risk lies in a potential wafer fab investment slowdown triggered by macro headwinds, which could trigger equipment order corrections.