Should I buy Applied Materials stock in 2025?

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At HelloSafe, our expert has been closely monitoring the performance of Applied Materials for over three years. Every month, hundreds of thousands of users across Canada rely on us to interpret market trends and identify top investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never received, and will never receive, any compensation from Applied Materials.

What is Applied Materials?

How much is Applied Materials stock?

The price of Applied Materials stock is rising this week. As of today, the stock trades at $149.21 USD, with a slight 24-hour decrease of $0.38 (down 0.25%), but showing a strong 3.92% gain over the past week.

Applied Materials holds a market capitalization of $121.22 billion, and an average trading volume of 7.84 million shares over the last three months.

The stock’s beta of 1.60 suggests above-average volatility. With these dynamics, Canadian investors can expect active price movements that may create both risks and opportunities in the current tech-driven market.

Our full analysis on Applied Materials stock

After thoroughly reviewing Applied Materials’ latest financial results and rigorously analyzing the stock’s performance over the past three years, we have utilized our proprietary models to synthesize a wide array of leading indicators—from technical signals and peer benchmarks to sector-specific market data. The convergence of these factors prompts investors to reconsider Applied Materials’ role as a pivotal entry opportunity within the semiconductor equipment sector, especially as we look ahead to 2025. So, why might Applied Materials stock once again become a strategic entry point into this sector in the next market cycle?

Recent Performance and Market Context

Despite broad turbulence in global technology stocks since late 2024, Applied Materials (AMAT: NASDAQ) has shown resilience that underscores its intrinsic strengths. As of April 30, 2025, the stock priced at $149.21 has recovered by nearly 4% in just the prior week, a clear signal of renewed investor appetite following months of volatility. While the share price remains 19% down over six months and nearly 25% below prior year levels—primarily a result of macro-driven sector rotations and regulatory headlines—the company’s rapid rebound from recent lows has attracted increased attention.

Several recent developments have worked to firm underlying confidence. Applied Materials delivered a 7% year-over-year revenue increase in its Q1 FY2025 results, reflecting sustained end-market demand despite a challenging export control environment. The company’s decision to raise its quarterly dividend by 15% to $0.46 per share and continued robust share repurchase activity have reinforced a clear commitment to shareholder returns—a key vote of confidence in long-term prospects.

Beyond company-specific events, macroeconomic and sectoral forces are aligning favorably. While the semiconductor cycle remains historically volatile, global policy support for domestic chip production, particularly in North America, and unprecedented AI and advanced computing investments have created persistent demand for leading-edge manufacturing equipment. As a major supplier to both U.S. and international chipmakers, Applied Materials is uniquely poised to benefit.

Technical Analysis

Technical readings accentuate the case for an entry-oriented outlook. Short-term indicators consistently show improving momentum:

• Moving Averages:
• 5-Day and 20-Day simple moving averages ($149.13 and $141.79, respectively) generate buy signals—supporting the thesis that recent downside pressure has been absorbed and that buyers are once again gaining control.
• While the 50-, 100-, and 200-day moving averages (at $150.65, $162.90, and $177.87) are above current trading levels—suggesting residual longer-term weakness—the convergence of price action near these levels historically has preceded significant trend reversals in AMAT’s trading history.
• Oscillators:
• The 14-day RSI at 53.39 is neutral and neither overbought nor oversold, allowing scope for further upside before encountering technical resistance.
• The MACD reading (-0.52) has been negative but is trending toward convergence; such patterns often foreshadow medium-term bullish inflections, especially when viewed alongside the stock’s recent bounce from strong support levels.
• Key Price Levels:
• Support is solidified in the $143.88–$145.70 range; buyers have frequently stepped in at these levels over the past month, providing a reliable technical floor.
• Initial resistance appears around $152.60–$154.42; a sustained breakout above this band would be a meaningful bullish confirmation, with potential to catalyze re-rating toward consensus price targets.

In sum, momentum is shifting positively, especially over short- and medium-term horizons, setting the stage for a possible trend reversal should macro conditions and company news flow remain constructive.

Fundamental Analysis

Applied Materials’ fundamental profile continues to justify growing investor interest, even amid cyclical sector pressures:

• Growth & Profitability:
• Q1 FY2025 revenue grew 7% year-on-year to $7.17 billion, showcasing resilience in the face of macro headwinds.
• Non-GAAP EPS surged 12% compared to last year, illustrating robust operating efficiency and margin discipline—GAAP gross margin stands at a healthy 48.8%, while operating margin is a stellar 30.4%.
• The company returned $1.64 billion to shareholders in the last quarter alone, with $1.32 billion devoted to share repurchases.
• Valuation:
• AMAT’s forward P/E stands at 16.1, below the broader tech sector median, reinforcing a valuation that seems reasonable given growth prospects, proven profitability, and secular demand tailwinds.
• A PEG ratio supported by steady EPS expansion, along with a price-to-sales multiple reflecting both quality and growth runway, make the current pullback appear out of sync with the company’s core earning trajectory.
• The dividend yield of 1.23% is competitive for the sector, and the recent 15% dividend hike signals management confidence.
• Structural Strengths:
• Applied Materials commands a leading market share in essential semiconductor fabrication equipment—a position underpinned by deep customer relationships, broad product breadth, and best-in-class materials engineering.
• The brand’s reputation for innovation and reliability cements its role as a first-mover and critical supplier throughout multiple semiconductor cycles.

Altogether, the fundamental setup seems to justify the heightened investor interest at current price levels, further bolstered by the company’s proactive capital allocation and operational execution.

Volume and Liquidity

Liquidity remains a distinct asset for AMAT. The average daily trading volume—approaching 7.84 million shares—ensures deep and efficient markets that readily absorb institutional flows. This robust volume profile is often interpreted by market professionals as implicit confirmation of investor confidence, especially during periods of fundamental transition or heightened news flow.

• Float and Valuation Dynamics:
• An actively traded and widely held float facilitates dynamic valuation adjustments, limiting the risk of price dislocations and enabling rapid re-rating as new catalysts emerge.
• Sustained volumes during recent support tests indicate ongoing institutional participation, adding further credibility to the legitimacy of recent price levels.

For Canadian investors seeking exposure to the robust U.S. technology ecosystem, AMAT’s liquidity profile represents an added layer of entry comfort.

Catalysts and Positive Outlook

The coming quarters could be rich in growth drivers as several bullish catalysts gain traction:

• AI & Advanced Compute:
• Applied Materials is at the very heart of the silicon innovation wave driving artificial intelligence and next-gen data centers. The company’s tools are essential to producing the advanced semiconductor nodes that underpin these transformative technologies.
• Co-Innovation Model:
• The company’s high-velocity co-innovation partnerships with leading chipmakers (including key North American and Asian industry leaders) are delivering rapid-cycle technological breakthroughs—this “early partnership” approach can create stickier customer relationships and drive above-trend order flow.
• Strategic Expansion & Investment:
• Major investments in advanced materials and energy-efficient device architectures are creating incremental revenue streams and enabling Applied Materials to capitalize on new era chip manufacturing, from memory to logic and beyond.
• Newly secured tax incentives in Singapore and expanding US manufacturing capacity reinforce the company’s ability to maintain growth while navigating global regulatory shifts.
• Shareholder Value:
• The board’s recent approval of a 15% dividend increase, coupled with ongoing share buybacks, support the thesis that Applied Materials is both committed to—and capable of—delivering attractive total returns across market cycles.
• Favorable Industry Trends:
• Multi-year investment cycles by major semiconductor manufacturers, fuelled by AI, 5G, edge compute, and electrification themes, promise a durable upswing in demand for capital equipment.
• Potential tailwinds from regulatory and fiscal initiatives to onshore semiconductor supply chains in the U.S. and allied economies further differentiate Applied Materials as a strategic supplier.

While export controls remain a headline risk—particularly as they affect China-focused revenue—the company’s diversified global footprint and product mix somewhat mitigate single-market exposure.

Investment Strategies

Applied Materials’ risk/reward profile offers distinct entry points across different investment horizons:

• Short Term:
• Recent bounces from well-established support near $145 present credible tactical buying windows for momentum- or swing-oriented strategies.
• Improvement in short-term technical indicators combined with renewed sector rotation into technology could trigger a rapid move toward the first resistance band at $154.
• Medium Term:
• The stock’s attractive forward P/E and below-average historical multiple, set against consensus analyst price targets near $203 (a ~30% implied upside), make this a tempting holding ahead of anticipated quarterly catalysts and technology inflection points.
• Investors positioning ahead of new AI- and memory-related product launches may benefit from above-average sector re-rating potential.
• Long Term:
• Long-horizon portfolios can anchor on Applied Materials’ enduring secular tailwinds—accelerated chip demand, innovation leadership, and capital return discipline—as the foundation for compounding value.
• Current valuation levels seem to underappreciate the company’s outsized relevance to the future of advanced manufacturing globally.

The overlap of technical support, fundamental progress, and a pipeline rich with new catalysts augurs well for investors looking to build or add to positions with a medium-to-long-term outlook.

Is It the Right Time to Buy Applied Materials?

Applied Materials occupies a singular position at the crossroads of innovation, market demand, and proven execution. Its recovery from cycle lows has blended robust fundamental performance—marked by rising revenues, expanding margins, and a shareholder-friendly capital return policy—with improving technical momentum and sector-wide enthusiasm for advanced compute applications. The current valuation offers a compelling entry for investors seeking exposure to secular growth drivers in AI and advanced manufacturing technology, while recent market action has provided clear evidence of a supportive investor base.

With a healthy balance sheet, prudent management, strategic geographic diversification, and a consistent track record of operational excellence, Applied Materials appears poised for a new bullish phase. The combination of strong technical support, below-historical-average valuation, imminent product and partnership catalysts, and sustained institutional liquidity suggests that Applied Materials stock deserves renewed attention from investors considering near-term entry or longer-term accumulation.

For Canadian and global investors alike, Applied Materials stands out as a high-conviction opportunity aligned with the most powerful structural trends shaping the technology landscape today. The confluence of recent financial momentum, promising market signals, and sector-leading innovation makes the current period an excellent window for serious consideration.

As the semiconductor industry enters its next era of growth, Applied Materials offers a unique gateway to participate in tomorrow’s technology breakthroughs—and the time to engage with this stock may indeed be now.

How to buy Applied Materials stock in Canada?

Buying Applied Materials (AMAT) stock online is straightforward and secure, thanks to regulated Canadian brokers who protect your assets and personal data. As a retail investor, you have two main ways to invest: spot buying (owning shares directly) or trading via Contracts for Difference (CFDs), which lets you speculate on price changes with added flexibility. Each approach has its own features and risks. To help you choose the right platform and trading method, you’ll find a broker comparison further down this page.

Spot Buying

When you purchase Applied Materials shares for cash, you become a direct shareholder with all associated rights (dividends, voting, etc.). Most Canadian brokers charge a fixed commission per transaction—typically around $5 to $10 CAD.

Informations importantes

For example, let’s say the share price is $149.21 USD (approx. $204 CAD at a 1.37 exchange rate). With a $1,000 CAD investment, you can buy about 4 shares, factoring in a typical $5 commission.
✔️ Gain scenario:
If the share price rises by 10%, your investment grows to $1,100 CAD.
Result: +$100 gross gain, or +10% on your initial outlay.

Trading via CFD

A CFD (Contract for Difference) on Applied Materials allows you to speculate on the price without owning the underlying shares. With CFDs, you can use leverage—meaning you control a larger position with a smaller amount. Fees usually include a spread (the difference between buying/selling price) and overnight financing costs if you maintain your position for more than a day.

Informations importantes

For instance, with a $1,000 CAD deposit and 5x leverage, you access $5,000 exposure to Applied Materials stock.
✔️ Gain scenario:
If the stock rises 8%, your position generates an 8% × 5 = 40% return.
Result: +$400 gain on a $1,000 stake (excluding fees).

Final Advice

Before investing in Applied Materials, take the time to compare Canadian brokers’ fees, account types, and trading conditions—a useful broker comparison is available below. The best method for you depends on your objectives: spot buying suits long-term investors, while CFDs offer flexibility and leverage for more active or speculative traders. Always consider your risk tolerance and investment goals.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Applied Materials stock

The latest news about Applied Materials

Applied Materials posts strong Q1 FY2025 results with 7% revenue growth and a 12% increase in non-GAAP EPS. During the first quarter of fiscal 2025, the company reported revenues of $7.17 billion, up from the prior year, and delivered non-GAAP earnings per share of $2.38—an increase of 12% year-over-year. Cash flow from operations was especially robust at $925 million, which enabled substantial shareholder returns including $1.32 billion in share repurchases and $326 million in dividends. Positive financial performance in a challenging macroeconomic environment demonstrates the company's operational resilience and supports a constructive outlook for the stock.

Dividend increase of 15% reflects confidence in ongoing cash generation and shareholder value creation. In March 2025, Applied Materials approved a notable 15% boost in its quarterly dividend to $0.46 per share, underlining the company's commitment to returning capital to investors. This enhancement is particularly reassuring for Canadian investors, as it signals greater stability and an attractive yield from a technology sector holding—especially relevant given the Canadian market's search for dividend growth amidst global uncertainty.

Short-term technical rebound aligns with analyst optimism, highlighting potential for a positive price trajectory. Over the past week, Applied Materials' stock rose nearly 4%, rebounding from key support levels, with both the 5-day and 20-day simple moving averages issuing “buy” signals. Although long-term technicals remain cautiously bearish, the nuanced improvement in short-term momentum and a consensus analyst price target set nearly 30% above current levels provide a compelling upside narrative. Canadian market participants may interpret this as an opportunity for tactical entry or positioning within technology-focused portfolios.

Continued partnership and product deployment with key Canadian semiconductor firms support regional relevance. Applied Materials maintains its presence in the Canadian market as a valued supplier to the country’s leading semiconductor and advanced manufacturing firms, including ongoing collaboration with research clusters and chip manufacturers in Ontario and Quebec. The company’s equipment and solutions enable Canadian foundries and R&D initiatives, reinforcing its strategic role in advancing the local technology ecosystem—a key consideration for Canadian-based investors evaluating global supply chain exposures.

Leadership in AI-accelerated semiconductor technology positions company to benefit from North American innovation investments. The company’s robust focus on enabling next-generation AI and advanced compute architectures positions it to capture the surging demand for semiconductor technologies in North America. As Canadian governmental and private initiatives ramp up investments in AI, cloud, and digital infrastructure, Applied Materials is well-placed to be a beneficiary, both through direct sales and as a pivotal upstream enabler in the semiconductor value chain—an important positive signal for long-term regional growth prospects linked to the stock.

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.