On Friday, November 28, 2025, Applied Materials, Inc. (NASDAQ: AMAT) is trading just below record levels as investors continue to price in powerful AI and memory-chip tailwinds, fresh institutional buying, and a wave of bullish analyst commentary.
As of the latest Black Friday session data, AMAT shares trade around $250.82, up roughly 0.3% on the day, after touching an intraday high near $253 in a shortened market session that ends at 1:00 p.m. Eastern. [1]
That keeps the stock within a whisker of its 52‑week high around $252.66 and extends an already strong year in which Applied Materials has delivered about a 40% total return in 2025, even while lagging some semiconductor equipment peers. [2]
AMAT stock price today: holding near record highs
- Last price: ~$250.82
- Day move: +$0.85 (about +0.3%) vs. a prior close near $249.97
- Intraday range: roughly $247.93 – $253.00 so far
- Volume (midday): about 1.4 million shares, lighter than a typical full trading day because of the Black Friday early close.
According to recent data, AMAT’s 52‑week low sits near $123.74, meaning the stock has roughly doubled from its lows, and its current valuation implies a market cap around $200 billion with a trailing price‑to‑earnings multiple close to 30x and a PEG ratio just under 3. [3]
In other words, Applied Materials is trading like what it is: a core AI and semiconductor infrastructure name that investors are willing to pay up for.
What is driving Applied Materials stock right now?
Today’s relatively modest move caps off a strong November for AMAT, powered by a mix of earnings, upgrades, big money flows and bullish technicals.
1. UBS upgrade and AI/DRAM cycle optimism
Earlier this week, UBS upgraded Applied Materials from “Neutral” to “Buy” and raised its price target from $250 to $285, arguing that the company is one of the best positioned beneficiaries of a coming wave of wafer fab equipment (WFE) spending, especially in DRAM and AI-centric data center investments. [4]
Analysts highlighting the upgrade note:
- AMAT’s leadership in deposition, etch, and advanced packaging tools needed for high-bandwidth memory (HBM) and gate‑all‑around logic nodes. [5]
- A likely multi‑year AI infrastructure buildout, which should support demand for both logic and memory equipment. [6]
That upgrade added to an already bullish Street backdrop where 20 analysts rate the stock “Buy” and 14 “Hold”, with an average target near $228—a level the stock has now pushed decisively above, underscoring how quickly sentiment has improved. [7]
2. Norges Bank’s new $1.6 billion stake
Today’s big headline on the ownership side: Norges Bank, Norway’s sovereign wealth fund and one of the world’s largest institutional investors, disclosed a new stake of 8.76 million AMAT shares, worth roughly $1.6 billion at the time of filing. That equates to about 1.09% of the company. [8]
The same filing notes that institutional investors now hold over 80% of Applied Materials’ float, with major asset managers like Geode, Bank of New York Mellon, Ameriprise and Amundi all adding to positions in recent quarters. [9]
Large, long‑term buyers of this kind tend to reinforce the narrative that AMAT is a core holding in the semiconductor capital equipment theme, not just a short‑term AI trade.
3. Technical breakout above key resistance
From a technical perspective, today’s action builds on a bullish breakout flagged by technicians:
- AMAT recently broke above a pivotal resistance level around $242.50,
- The stock continues to trade comfortably above its 50‑day moving average,
- Momentum indicators like RSI remain positive, even in overbought territory. [10]
One widely followed technical note now sees upside potential toward ~$266.80 so long as price stays above that former resistance band near $242.50, labeling the short‑term outlook “bullish.” [11]
4. Active derivatives market and bullish sentiment
On November 19, options data showed unusually large call activity in AMAT, with traders buying nearly 80,000 call contracts—more than double typical daily volume—on a day the stock jumped about 4.5% to around $235. [12]
Heavy call buying often reflects speculative or hedged bullish positioning, and it has coincided with the stock’s move to new highs in the days since.
Earnings check: record fiscal 2025, cautious near‑term guidance
Applied Materials’ current share price rests on the foundation of a record fiscal year 2025 and better‑than‑feared near‑term guidance.
Record fiscal 2025 results
For the fiscal year ended October 26, 2025, Applied Materials reported:
- Revenue of about $28.4 billion, up 4% year over year,
- Record levels for revenue, gross margin dollars, operating profit and EPS,
- Continued focus on AI‑enabling technologies, including advanced nodes, packaging, and co‑innovation with key customers. [13]
GuruFocus data pegs AMAT’s operating margin near 30% and gross margin approaching 49%, both improved from prior years, while an Altman Z‑Score around 9.6 and interest coverage over 30x highlight a very robust balance sheet. [14]
Q4 2025: small step back, but a beat
In Q4 FY2025, Applied Materials delivered: [15]
- EPS of $2.17, beating consensus estimates of about $2.11,
- Quarterly revenue around $6.8 billion, down 3.5% year over year,
- Net margin of roughly 24% and return on equity above 40%, preserving very strong profitability.
The year‑over‑year revenue dip reflects cyclical normalization and export restrictions, rather than a collapse in demand; management still characterizes AI‑driven capital spending as a multi‑year growth driver.
Guidance and dividend
Looking ahead, Applied Materials has guided Q1 FY2026 EPS to a range of roughly $1.98–$2.38, bracketing consensus expectations and signaling a still‑solid earnings profile despite macro and regulatory headwinds. [16]
The company also pays a quarterly dividend of $0.46 per share, or $1.84 annually, implying a yield of about 0.7% at current prices and a payout ratio just over 20%—leaving ample room for buybacks and R&D investment. [17]
Strategy shifts: AI investment, workforce reduction and China risk
While the top line grows steadily, Applied Materials is also retooling its cost base and geographic strategy.
New AI‑focused technologies and R&D expansion
Recent commentary highlights Applied Materials’ push into:
- Hybrid bonding and next‑generation metrology systems for advanced AI chips,
- Expanded R&D efforts in Korea to stay close to key memory and logic customers,
- Tools optimized for AI‑centric DRAM and HBM, a core thesis behind UBS’s recent upgrade. [18]
These initiatives support the view—reinforced by GuruFocus’ GF Score of 94/100—that AMAT occupies a strong competitive position across most major WFE categories, with leading market share in deposition and broad exposure to both logic and memory. [19]
4% workforce reduction and export‑control drag
In late October, Applied Materials disclosed a 4% reduction in its global workforce, equivalent to roughly 1,444 employees, incurring $160–$180 million in restructuring charges. [20]
The company framed the cuts around:
- Automation and digitalization,
- Geographic shifts in its operations,
- The need to improve productivity as it heads into fiscal 2026.
At the same time, management has warned that expanded U.S. export restrictions on certain chip tools could knock roughly $600 million off FY2026 revenue, particularly in China—still one of the largest markets for wafer fab equipment. [21]
Investors so far appear to view the restructuring as pre‑emptive cost control rather than a sign of deeper weakness, especially given the strong balance sheet and high margins.
Insider selling: context for the VP share sale
Alongside the Norges Bank purchase, filings show Senior Vice President Teri A. Little sold 4,000 AMAT shares at an average price around $238.24, for proceeds of roughly $953,000, leaving her with about 84,351 shares—still a significant stake. [22]
Given the stock’s strong run and the relatively small size of the sale versus her remaining holdings, markets have largely treated the transaction as routine diversification, not a negative signal.
Industry backdrop: AI and memory are powering a new equipment upcycle
AMAT’s story doesn’t unfold in a vacuum. The semiconductor industry backdrop has turned meaningfully more supportive in 2025.
- The Semiconductor Industry Association (SIA) reports that global chip sales reached $208.4 billion in Q3 2025, up 15.8% from Q2, with September sales up 25.1% year over year—a clear sign that the post‑downcycle recovery is well underway. [23]
- Industry group SEMI forecasts that total semiconductor manufacturing equipment sales will reach a record $125.5 billion in 2025, a 7.4% year‑over‑year increase, and continue growing into 2026 on the back of AI and leading‑edge node transitions. [24]
- A separate market study projects the semiconductor manufacturing equipment market will reach about $166 billion in 2025 and more than $344 billion by 2032, implying an 11% compound annual growth rate. [25]
As the largest wafer fab equipment maker, with major customers such as TSMC, Intel and Samsung, Applied Materials is structurally wired into this spending cycle. [26]
Valuation, performance and technical setup
From a high‑level investor lens, AMAT today looks like this:
- Performance: about 40% total return in 2025, but still behind key peers such as ASML, KLA and Lam Research, which have posted returns in the 50–100% range this year. [27]
- Valuation:
- Trailing P/E near 30x,
- Forward P/E in the mid‑20s, above its three‑year average,
- PEG ratio under 3, suggesting valuation that’s rich but not extreme relative to growth. [28]
- Balance sheet: low leverage with a debt‑to‑equity ratio around 0.28 and healthy liquidity (quick ratio ~1.8, current ratio ~2.5). [29]
- Technical picture:
- Trading well above its 50‑ and 200‑day moving averages,
- Recent breakout above $242.50 with a bullish short‑term forecast toward $266.80,
- Momentum strong, but overbought readings suggest the potential for near‑term pullbacks inside a longer‑term uptrend. [30]
In short, Applied Materials is no longer “cheap”, but the market appears comfortable paying a premium for:
- Its dominant position in core AI and memory equipment,
- Consistently high margins and strong cash generation,
- A sector backdrop that looks set for multiple years of elevated capital spending.
Key risks investors are watching
Despite the upbeat narrative, several risks remain front and center:
- Export controls and geopolitics
Further tightening of U.S. export rules could extend the expected $600 million revenue drag and constrain growth in China, particularly for advanced logic and memory tools. [31] - Cyclical spending swings
The semiconductor equipment industry is historically volatile; a slowdown in AI, data‑center, or consumer electronics demand could lead to delayed or reduced capex. - Rich valuation vs. peers
With AMAT trading at a premium to its own history and still lagging some peers’ performance, investors may question how much upside remains before expectations outpace reality. [32] - Execution on restructuring and R&D bets
The 4% workforce reduction and new AI‑focused initiatives need to translate into sustainable margin gains and share wins to justify today’s price.
What to watch next for Applied Materials stock
Looking beyond today’s Black Friday session, several upcoming catalysts could shape AMAT’s next move:
- Q1 FY2026 earnings (estimated mid‑February 2026) – analysts currently expect around $9.4 in EPS for the full fiscal year, making management’s guidance corridor and any commentary on China, AI and memory demand especially important. [33]
- Management’s appearance at the UBS Global Technology & AI Conference on December 2, where CFO Brice Hill is scheduled to speak about strategy and capital allocation. [34]
- Regulatory updates around U.S. export policy and AI‑related controls, which could either ease or intensify the company’s China headwinds. [35]
- Follow‑through on restructuring, including whether the cost cuts and automation initiatives drive the margin expansion investors are now pricing in. [36]
Bottom line
On November 28, 2025, Applied Materials stock is holding near all‑time highs, supported by:
- A record fiscal 2025,
- Strong AI and memory‑driven demand,
- A major Norges Bank stake,
- A UBS upgrade with a $285 target, and
- A bullish technical setup after breaking through key resistance. [37]
At the same time, the stock’s premium valuation, export‑control exposure, and cyclical risks mean future gains are likely to depend on continued flawless execution and the durability of the AI and DRAM upcycle.
For readers considering AMAT, it’s worth treating this as information, not a recommendation: always factor in your own risk tolerance, time horizon, and financial situation, and consider speaking with a qualified financial adviser before making investment decisions.
References
1. www.nasdaqtrader.com, 2. www.marketbeat.com, 3. www.marketbeat.com, 4. simplywall.st, 5. www.gurufocus.com, 6. simplywall.st, 7. www.marketbeat.com, 8. www.marketbeat.com, 9. www.marketbeat.com, 10. www.economies.com, 11. www.economies.com, 12. longbridge.com, 13. www.investing.com, 14. www.gurufocus.com, 15. www.marketbeat.com, 16. www.marketbeat.com, 17. www.marketbeat.com, 18. simplywall.st, 19. www.gurufocus.com, 20. www.tikr.com, 21. www.tikr.com, 22. www.tradingview.com, 23. www.semiconductors.org, 24. www.semi.org, 25. www.prnewswire.com, 26. www.gurufocus.com, 27. www.investing.com, 28. www.marketbeat.com, 29. www.marketbeat.com, 30. www.economies.com, 31. www.tikr.com, 32. www.investing.com, 33. www.marketbeat.com, 34. tickernerd.com, 35. www.semiconductors.org, 36. www.tikr.com, 37. www.marketbeat.com
