AMAT Stock Prediction: The Future of AMAT Looks Promising After Release of Q2 Result

I Know First Research Team LogoThis article was written by the I Know First Research Team.
Source: Wikipedia


  • Trade war between US and China could affect AMAT by reducing sales to their largest customer base
  • Falling demand for Memory Chips and Display Market Segment is affecting net sales
  • Effective AMAT growth strategy in their Service Segment
  • Strong focus on R&D in the future to improve net sales
  • Bullish I Know First long term AMAT stock prediction and given a buy rating for the next quarter

AMAT’s Performance In Q2

Applied Materials (AMAT), one of the largest producer of semiconductor manufacturing equipment, might be facing some troubles from trade wars, a drop in overall smartphone consumer demands as well as stiff competition in display technologies. AMAT stock’s competitors such as KLA-Tencor and Lam Research also gave a similar downbeat outlook this quarter. Despite that, AMAT’s transition to more cloud data centers, 5G infrastructure, IoT and automotive technologies will pave the way for growth in 2020. The semiconductor equipment market is forecasted to drop 8% in 2019 but face a growth of 5

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AMAT Stock Forecast For 2019



This article was written by Vladimir Mazepa, a Financial Analyst at I Know First.

[Source: Wikimedia]


  • From technical perspective AMAT shows an opportunity to buy stock with a reasonable discount, where it is traded with a 38% discount from the last peak in March 2018.
  • Financially AMAT is undervalued among its peers and trading at 11.82 Price to Earnings ratio, compared to 17.61 in the industry. Price/Book is a bit higher than average in the industry (4.81) and Price to Sales 2.27 and are lower than the average industry 3.42.
  • AMAT generates stable positive Free Cash Flow
  • Operating Margin is quite good for semiconductor industry with almost about 30%, which helps the company manage the possible problems in the future.
  • Applied Materials invests in good projects by showing excellent Return on Equity – 40.93%, Assets – 17.82%, Capital – 25.26%.
  • AMAT boosts its dividend to $0.20 from $0.10 per share with a yield at 2.1%