Applied Materials

AMAT

Market cap $203B

Zacks.com users have recently been watching Applied Materials (AMAT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

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Applied Materials (AMAT) stock could be an appealing purchase at this time. Why? Because it offers high margins – indicative of its pricing power and capacity for cash generation – at a discounted price.

The iPhone maker leads the way for the sector in terms of dollars spent on stock buybacks. But other tech companies have reduced their share counts significantly, as well.

AMAT's high-margin chip tools and tighter cost controls are helping sustain margin gains even as R&D spending climbs.

ASML Holdings NV (NASDAQ: ASML) saw its fundamental profile strengthen this week, with its quality score rising to 90.18 from 89.87 the previous week.

Shares of Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) climbed 3.8% on Tuesday afternoon after UBS upgraded the chip-equipment maker to Buy from Neutral, citing a strengthening memory recovery and raising its 12-month price target to $285 from $250. UBS analysts said they now expect a “significantly more bullish outlook” for wafer fabrication equipment (WFE) in 2026 and 2027, driven largely by a surge in DRAM spending.

The Investment Committee discusses some of their stocks on the move and debates the latest Calls of the Day.

Just yesterday, analysts at Bernstein reiterated an “outperform” rating on NVDA, stating that the data center opportunity remains significant and early, with further upside likely.

UBS upgrades the semiconductor equipment stock to Buy from Neutral.