I know some people have been sitting on the sidelines all year…
Waiting for the right moment.
The right market.
The right price.
Well — this is it.
For Black Friday, you can get a full year of my Tim Sykes Letter and a 30-day trial of my AI forecasting tool, XGPT, for just $1.
That’s cheaper than a cup of coffee.
You’ll see the same kinds of setups I trade…
With AI-predicted prices down to the 1/1000th of a dollar.
If you’ve ever wanted to take trading seriously… this is your moment.
🎯 Start trading smarter for $1.
Let’s do this,
Tim
Applied Materials: Up 40% in 2025 With Room to Run Long-Term
Written by Leo Miller. Published 11/20/2025.
Key Points
- Applied Materials has had a year of ups and downs. The stock has recovered mightily since tanking in August.
- Despite experiencing sales growth of only 4%, the company's shares have increased by 40% in 2025.
- With sales likely to recover, AMAT shares still appear to be a solid long-term investment.
Despite delivering a total return of 40%, some investors may view Applied Materials' (NASDAQ: AMAT) 2025 performance as underwhelming. The tech stock has significantly underperformed several semiconductor equipment peers — for example, Lam Research (NASDAQ: LRCX) has returned 107%.
Applied Materials just reported its latest financial results. Even though it has lagged some peers this year, it remains a strong play in semiconductor manufacturing equipment for the long term.
AMAT Beats Low Expectations in Q4
Wall Street is ignoring these 10 sub-$10 stocks (and that's exactly why you should pay attention) (Ad)
Most investors won't touch stocks under $10.
They think "cheap" means "junk." They're wrong.
While the crowd chases the same overpriced tech giants, a handful of sub-$10 stocks just triggered massive catalysts that Wall Street hasn't fully priced in yet.
The smartest money always moves before the crowd realizes what's happening.
Applied's Q3 fiscal year 2025 (FY2025) earnings report provides useful context for its most recent release. (Applied's fiscal year is one quarter ahead of most firms.) Shares fell about 14% on Aug. 15 after the Q3 report because the company provided much weaker-than-expected guidance for Q4. Applied later reported Q4 results on Nov. 13.
At the time of the Q3 report, management guided to adjusted earnings per share (EPS) that implied a roughly 9% decline, versus Wall Street expectations for about a 3% increase. The company also signaled revenue would decline nearly 5% year over year, while analysts had been forecasting about 4% growth. Meanwhile, peers were providing a more encouraging outlook.
When Applied reported Q4 FY2025 results, it performed slightly better than those lowered expectations. Sales declined 3.5% to $6.8 billion and adjusted EPS fell 6.5% — both metrics beating the muted estimates, though the comparison was against a lowered bar.
Applied's guidance for Q1 FY2026 modestly exceeded consensus, but still implies notable year-over-year declines in both revenue and adjusted EPS. After the Q4 report, shares edged up about 1% on Nov. 14.
China Risk Looks Subdued Moving Forward
China has been a major overhang on Applied's business because export restrictions have materially constrained its addressable market there. That was particularly unfortunate given China's abnormally high wafer fabrication equipment (WFE) spending, which Applied could not fully access.
Looking ahead, Applied does not expect further export restrictions and it has already absorbed much of the impact from prior measures. The company expects China revenues to continue falling into 2026 as the market works through an equipment oversupply, but incremental China-related risk appears limited. Applied forecasts minimal total revenue growth in the first half of calendar 2026, with acceleration in the second half as end-market dynamics normalize.
Applied's Outlook Remains Favorable Despite Underperformance
Applied's 40% total return has markedly underperformed several WFE peers in 2025. Total returns for three prominent players are:
- ASML (NASDAQ: ASML): 54%
- KLA (NASDAQ: KLAC): 83%
- Lam Research: 107%
Applied's last-12-month (LTM) revenue growth of 4.4% sits at the bottom of this group, while the others are growing between roughly 22% and 26%. Applied's product mix has left it less exposed to some of the strongest near-term trends.
For example, the NAND memory equipment market is expected to roughly double by 2025, yet NAND accounted for only 6% of Applied's sales last quarter versus about 18% of Lam's sales. Meanwhile, leading-edge foundry and logic investment has favored advanced lithography, a segment dominated by ASML where Applied does not compete.
These differences reflect the cyclical nature of the WFE industry: demand shifts between equipment types over time. Ultimately, though, technology advancement requires rising spending across the whole equipment ecosystem. Strong demand at other WFE firms supports the view that investment will eventually broaden and benefit Applied. The company is not losing its competitive edge — it is undergoing a temporary rough patch.
Over the past decade, these four companies have grown LTM free cash flow at a compound annual rate near 20%, which suggests Applied's growth has potential to recover toward peer levels over the long term.
The market appears to recognize this dynamic. Applied's forward price-to-earnings (P/E) ratio is near 24x, roughly 27% above its three-year average forward P/E. That means Applied is no longer the bargain it was several months ago, but its long-term fundamentals remain solid despite subdued near-term sentiment.
to bring you the latest market-moving news.
This message is a sponsored message from Timothy Sykes, a third-party advertiser of TickerReport and MarketBeat.
Results are not typical and will vary from person to person. Making money trading stocks takes time, timing, proper execution, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk.
Contact Us | Unsubscribe
© 2006-2025 MarketBeat Media, LLC dba TickerReport. All rights reserved.
345 N Reid Pl. #620, Sioux Falls, SD 57103-7078. USA..
0 Response to "One decision. One dollar."
Post a Comment