Evaluating Applied Materials' Valuation Amid Recent Surge in Performance

Applied Materials (AMAT) has seen strong share price performance with a total return of 80.97% over the past year and 10.37% over the past 3 months. Analysts expect a fair value of $194.11, significantly lower than the recent close of $322.51, indicating the stock is overvalued. However, the narrative suggests steady revenue expansion, firm margins, and a future earnings multiple that assumes continued growth in the AI build-out.