Where Will Applied Materials Stock Be in 1 Year?
Wednesday, Dec 11, 2024 4:54 am ET
4min read Applied Materials (AMAT) has been a key player in the semiconductor industry, providing manufacturing equipment, services, and software. As the industry continues to grow, investors are wondering where the stock will be in one year. This article explores the potential trajectory of Applied Materials' stock price based on recent trends and expert opinions.
In the past year, Applied Materials' stock price has gained 15.5%, underperforming the S&P 500 index's 31.5% gain. This can be attributed to the decline in global semiconductor sales in 2023, which fell by 8.2%. However, the industry is expected to rebound in 2024, with sales projected to increase by 19% to $627 billion. This positive outlook could drive demand for Applied Materials' equipment and services, potentially boosting the stock price in the coming year.
Analysts have a 12-month median price target of $225 for Applied Materials stock, which would represent a 30% increase from current levels. This optimism is driven by the company's strong earnings growth potential and the growing demand for AI-related chipmaking equipment. In fiscal 2024, Applied Materials' revenue from high-bandwidth memory (HBM) packaging was $700 million, and management expects this figure to increase at a robust pace in 2025.
The increasing complexity of chips deployed in AI markets is expected to drive demand for Applied Materials' products and services. As AI workloads become more advanced, there is a growing need for more sophisticated chipmaking technology. This trend is likely to increase the addressable market for Applied Materials, as it specializes in providing manufacturing equipment and services for the semiconductor industry.
In conclusion, the future of Applied Materials' stock price appears promising, given the positive outlook for the semiconductor industry and the growing demand for AI-related chipmaking equipment. While there are potential risks and uncertainties, the company's strong earnings growth potential and the increasing complexity of chips deployed in AI markets suggest that the stock could be worth more than its current price in one year. Investors should monitor the company's performance and market trends to make informed decisions about their portfolios.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
