Should I buy Applied Materials stock in 2025? Complete Guide for AE Investors

What is Applied Materials?

How much is the Applied Materials stock?

The price of Applied Materials stock is falling this week. As of now, it trades at $159.48, marking a 1.31% decrease over the past 24 hours and reflecting notable volatility after recent Q2 earnings. Over the past week, the share price has shown ongoing fluctuations, keeping investors attentive in a fast-moving market.

Investors in the UAE should consider the strong growth outlook but remain aware of inherent volatility in the semiconductor sector.

Our full analysis on the Applied Materials stock

We have conducted an in-depth review of Applied Materials' latest financial results and assessed its stock performance throughout the past three years. By integrating key financial indicators, technical signals, comprehensive market data, and thorough peer analysis using proprietary algorithms, the emerging narrative is compelling. So, why might Applied Materials stock once again become a strategic entry point into the technology and semiconductor sector in 2025?

Recent Performance and Market Context

Applied Materials (NASDAQ: AMAT) has experienced heightened volatility over the last twelve months, reflecting both its pivotal role in the semiconductor value chain and the dynamic macroeconomic backdrop. As of May 30, 2025, the stock trades at $159.48—a consolidation notably below its all-time high of $255.89 reached in July 2024, and marking a decline of approximately 37.7% from that peak. This correction, however, follows a period of robust outperformance anchored by accelerating demand for advanced chipmaking equipment, driven in particular by the exponential growth in artificial intelligence (AI) and high-performance computing.

Noteworthy positive events include record-breaking Q2 2025 earnings, strong cash generation, and a significant return of capital to shareholders ($2 billion in Q2, including substantial buybacks). While export restrictions have weighed on China-related revenues—now 25% of total versus 43% a year ago—Applied Materials has demonstrated resilience and agility by capturing increased demand in other regions and applications.

The broader sector context remains strongly supportive, especially as leading chipmakers (TSMC, Samsung, Intel) ramp up investments in next-generation manufacturing technologies. The semiconductor equipment industry, widely regarded as the backbone of global digitalization, is experiencing multi-year structural demand tailwinds, especially from the Middle East and Asia-Pacific—well aligned with the long-term infrastructure ambitions of the United Arab Emirates and the wider GCC region.

Technical Analysis

From a technical standpoint, AMAT presents an intriguing blend of consolidation and nascent bullish momentum. On the one hand, the RSI (14-day) sits at 51.52, placing the stock in neutral territory—suggesting neither overbought nor oversold conditions. The MACD (12,26,9) generates a buy signal (+2.90), indicating the potential for upward price action, while the 50-day moving average ($151.09) has been retaken on recent rebounds.

Key technical support is identified at $157.63, with additional levels at $160.42, offering a relatively tight stop-loss range for tactical investors. Immediate resistance awaits at $163.21 and $166.00; a decisive move above these thresholds would likely validate a short-term bullish reversal.

While the overall technical consensus is somewhat mixed (7 sell vs. 5 bullish signals), the lack of overextended readings and emerging upward momentum suggest that Applied Materials may be forming a renewed base from which a sustained recovery could be mounted, particularly if upcoming earnings or sector news acts as a catalyst.

Fundamental Analysis

From a fundamental perspective, Applied Materials continues to demonstrate superior operating performance and structural leadership. The Q2 2025 results illustrate the company's capacity for growth even in complex market conditions:

• Revenue surged to $7.10B (+7% YoY), confirming diversified demand.
• GAAP EPS hit $2.63 (+28% YoY, a record), while non-GAAP EPS of $2.39 (+14% YoY) beat consensus estimates.
• Gross margin remains robust at 49.1%, and operating margin at 30.5% reflects exceptional business efficiency.
• Segment performance highlights strength both in core semiconductor systems (+7.2% YoY revenue, 36.4% margin) and in high-growth display solutions (+44.7% YoY).

Despite some impact from ongoing US-China trade tensions (with a manageable estimated revenue hit of ~$400M in FY25), Applied Materials’ strategic expansion—particularly into high-demand AI, HPC, and data center markets—more than offsets these headwinds.

The company’s valuation remains attractive: with a forward P/E of 16.68 and a price/sales ratio of 4.67, AMAT is not only trading at a notable discount relative to its sector peers (especially given its innovation pipeline and global market share of ~24%), but also offers an appealing entry for those seeking both growth and quality at a reasonable price.

Structurally, Applied Materials enjoys:

• The broadest product and technology moat in wafer fabrication.
• Deep, long-term relationships with the world’s most important chipmakers.
• Unmatched innovative capacity, with the largest R&D investment among WFE peers—securing its leadership into the next era of advanced manufacturing.

Volume and Liquidity

Recent trading volumes average around 8 million shares daily, signaling continued deep market liquidity and broad investor participation. Such sustained liquidity typically reflects robust institutional conviction and enables both short-term and long-term investors to enter and exit positions efficiently.

Furthermore, the company’s substantial public float (~800M shares) and active buyback program ($1.67B in Q2 alone) together create favorable dynamics for dynamic revaluation, while minimizing the risk of liquidity-driven price shocks.

High institutional ownership is also a positive indicator, suggesting that the stock is supported by sophisticated capital—a hallmark of enduring quality for leading US large-cap tech equities.

Catalysts and Positive Outlook

Applied Materials stands at the confluence of a number of highly favorable catalysts:

• AI-driven demand: As the AI revolution accelerates, the company’s leadership in advanced deposition and metrology technology is set to benefit from rapidly expanding chip complexity and volume.
• Advanced manufacturing expansion: Invested partnerships with major players like TSMC, Samsung, and Intel are expected to yield ongoing equipment cycles across foundry, DRAM, and flash segments.
• Geographic diversification: Strategic efforts to broaden the customer base and supply chain beyond China mitigate geopolitical risks, underpinning a balanced global demand profile.
• ESG and sustainability: Proactive investments in environmentally responsible manufacturing align the company closely with rising regulatory and investor standards, particularly important in EMEA and Asian markets.
• Shareholder value: The combination of a healthy forward dividend yield (1.15%), regular buybacks, and strong cash generation ($1.57B from operations in Q2) directly supports total return potential.

Looking ahead, AI, high-performance computing, and data center proliferation remain secular and powerful drivers; consensus analyst price targets suggest almost 29% upside from current levels, reflecting confidence in the multi-year growth runway.

Investment Strategies

Given current valuations and technical posture, AMAT appears to offer attractive scenarios for both tactical and strategic investors:

• Short-term perspective:
• Consider entries close to established support zones ($157.63–$160.42), with a view to capturing rebounds toward initial resistance ($163–$166) and anticipation of pre-Q3 guidance momentum.
• Recent MACD buy signals and neutral RSI reduce the probability of immediate downside spikes, making the near-term risk/reward profile favorable.
• Medium-term orientation:
• The current consolidation below the 200-day moving average suggests an opportunity to establish positions ahead of anticipated sector catalysts (including new product cycles, major customer capex ramps, and further AI momentum).
• Analyst consensus upgrades, renewed buybacks, or unexpected positive news could trigger outsized upward price action.
• Long-term strategy:
• Structurally, Applied Materials is deeply embedded at the heart of semiconductor innovation and AI adoption. Its R&D intensity, brand strength, and customer entrenchment provide excellent insulation against cyclical troughs.
• For investors seeking multi-year compounders within the tech value chain—with a strong dividend component and robust balance sheet—AMAT stands out as a core portfolio holding candidate.

Is it the Right Time to Buy Applied Materials?

In summary, several converging vectors reinforce the case to give renewed attention to Applied Materials at present levels:

• Technical stabilization at strategically significant support, with emerging bullish signals.
• Strong fundamentals expressed through above-peer growth, record earnings, high margins, and resilient cash flow.
• Attractive valuation matched with significant analyst-upside consensus.
• Secular tailwinds from AI, advanced computing, and sustainable manufacturing.
• Robust liquidity and shareholder-friendly capital allocation, underscoring management’s confidence in future cash generation.

While geopolitical and cyclical factors warrant prudent vigilance, the cumulative evidence points to Applied Materials entering a new phase of opportunity. The fundamentals and catalysts justify renewed interest, with the stock seemingly poised to benefit from both anticipated sector recovery and multi-year structural growth.

For investors exploring the most strategic ways to gain exposure to the surging technology and semiconductor renaissance—particularly from the vantage point of the UAE and broader Middle East—Applied Materials appears to represent an excellent opportunity for consideration at this pivotal juncture.

In a landscape defined by both volatility and transformative technological change, AMAT’s unique blend of innovation, scale, and financial strength positions it at the forefront of long-term value creation.

How to buy Applied Materials stock in the UAE?

Buying shares of Applied Materials (AMAT) online is straightforward and secure when you use a regulated broker platform. Investors in the UAE can access global stock markets—including the US-based NASDAQ, where AMAT is listed—within minutes. There are two main ways to invest: by directly purchasing shares (spot buying) or by trading Contracts for Difference (CFDs) for exposure with leverage. Each method has its own advantages and risks. To help you find the most suitable broker with competitive fees, you’ll find a detailed comparison further down the page.

Spot Buying

A cash, or “spot,” purchase means you buy actual shares of Applied Materials in your own name via a regulated online broker. You become a shareholder and can benefit from price increases, dividends (such as AMAT’s $1.84 annual dividend per share), and voting rights. Expect typical brokerage fees: UAE brokers usually charge a fixed commission per order—often around $5 (about AED 18), plus possible small foreign exchange charges.

Example

If the Applied Materials share price is $159.48 and you invest $1,000 (about AED 3,670), you could buy about 6 shares ($159.48 × 6 = $956.88), factoring in a $5 brokerage fee. Any remaining cash stays in your account.

✔️ Gain scenario: If the share price rises by 10% to $175.43, your 6 shares are now worth $1,052.58.
Result: Gross gain of +$95.70 (before fees and any currency differences)—that’s +9.6% on your investment.

Trading via CFD

CFDs (Contracts for Difference) are derivative products that let you speculate on Applied Materials’ share price movements with leverage—without owning the underlying shares. With CFDs, you can trade both rising and falling prices, but should be aware of risks like leverage magnifying both gains and losses. Typical costs include a spread (the small difference between buy/sell prices) and overnight financing fees if you hold positions overnight.

Example

Suppose you open a CFD position on Applied Materials with $1,000 (about AED 3,670) and choose 5x leverage. This means your exposure is $5,000.

✔️ Gain scenario: If AMAT’s price rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 profit on your $1,000 stake (excluding fees). Remember that leverage also means higher risk: losses are similarly magnified.

Final Advice

Before investing, take time to compare broker fees, commission structures, available market access, and trading conditions—these can significantly impact your returns. The right approach, whether cash buying or CFD trading, depends on your investment objectives, risk tolerance, and strategy. To assist your decision-making, a comprehensive broker comparison is available further down the page.

Our 7 tips for buying Applied Materials stock

The latest news about Applied Materials

Applied Materials delivered record Q2 2025 earnings with a 28% year-over-year EPS increase and expanding margins. This robust financial performance was driven by a 7% increase in revenues to $7.10 billion, with gross margins exceeding 49% and operating margins over 30%. These results demonstrate exceptional operational efficiency, outpacing analyst EPS estimates and indicating that Applied Materials continues to capitalize on strong underlying demand, particularly from the global push toward advanced semiconductor and AI technologies. The financial trajectory is further underscored by an impressive non-GAAP EPS beat and sustained cash generation, with $1.57 billion in operating cash flow and $2.0 billion returned to shareholders last quarter.

Analyst sentiment remains highly positive, with a consensus "Buy" rating and 28.7% upside potential from current levels. Twenty-two leading analysts assign a consensus price target of $205.18 per share, reflecting significant confidence in Applied Materials’ prospects. This bullish view is anchored in the company’s dominant market share—approximately 24% of the global semiconductor equipment sector—its central role in critical chip manufacturing, and its unmatched R&D investment. Such positive sentiment is an important signal for regional institutional and retail investors in markets like the UAE, where global technology leadership and long-term growth narratives attract sustained capital flows.

Applied Materials continues to extend its leadership in AI-driven semiconductor equipment, which aligns with the UAE’s strategic tech initiatives. The company’s advanced deposition technologies and comprehensive wafer fabrication equipment portfolio position it as a core enabler of next-generation AI and high-performance computing chips. The Middle East, particularly the UAE, is investing heavily in AI research, chip design, and digital infrastructure, and Applied Materials’ solutions are likely integral to the supply chains serving these ambitions. While no direct local partnership has been announced this week, the firm’s foundational presence in leading global foundries and its role in data center and AI chip manufacturing bear indirect relevance for technology ecosystems in the UAE and the broader region.

Applied Materials demonstrates prudent financial management with active capital return strategies and a focus on long-term, sustainable growth. The company’s Q2 2025 included $1.67 billion in share buybacks and a forward dividend yield of 1.15%, signaling disciplined capital allocation and shareholder alignment. With $6.17 billion in cash reserves and a strong balance sheet, the company is well-positioned to withstand sector cyclicality, support R&D, and respond to global market shifts—characteristics valued by investors in regional markets seeking stability and long-term value.

Technical indicators present mixed, but stabilizing, signals with bullish momentum noted in key metrics. While the overall technical consensus currently trends bearish—with the majority of short-term moving averages below the current price—momentum indicators such as the MACD have flipped to bullish and the RSI remains neutral at 51.5, suggesting potential for consolidation or upward movement. The stock’s volatility and recent correction off last year’s all-time high may present a strategic entry point for UAE-based investors seeking exposure to the sector’s global rebound potential, especially as technicals stabilize amid a positive long-term growth environment.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.