Applied Materials INC
|Instrument:APPLIED MATERIALS INC|
APPLIED MATERIALS, INC. (ticker symbol: AMAT) is one of the world’s largest suppliers of semiconductor manufacturing equipment. AMAT provides materials engineering solutions used to produce nearly every chip and advanced display in the world.
APPLIED MATERIALS, INC. was founded on November 10, 1967, by Michael A. McNeilly and others and is headquartered in Santa Clara, California. The company completed its Initial Public Offering on October 5, 1972, at $10.00 per AMAT share.
Today, APPLIED MATERIALS, INC. operates from 90 locations in 13 countries across the globe and leads numerous industry segments, including Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. AMAT’s IP portfolio includes more than 8,000 patents worldwide, and the company spends approximately $1bn a year on research and development to ensure product leadership.
APPLIED MATERIALS, INC. shares are traded on the NASDAQ stock exchange (ticker symbol: AMAT). APPLIED MATERIALS, INC. can also be traded as part of major indices, including the Nasdaq 100, Nasdaq Composite, and S&P 500. Part of the Industrial sector, AMAT APPLIED MATERIALS, INC.’s most significant revenue sources include sales from Semiconductor Systems, Applied Global Services, and Display. While the company’s biggest clients are three of the most prominent chipmakers in the world: Samsung Electronics, Taiwan Semiconductor Manufacturing Company (TSM), and Intel (INTC).
Over the years, APPLIED MATERIALS, INC. has spent over $ 7.67B in major acquisitions investing in multiple sectors such as Digital ICs, Internet of Things Infrastructure, Manufacturing Tech and more. AMAT’s key acquisitions include:
- In November 1996, APPLIED MATERIALS, INC. acquired Israeli companies Opal Technologies and Orbot Instruments for an aggregate amount of $285 million.
- On June 27, 2001, AMAT acquired Israeli company Oramir Semiconductor Equipment Ltd., a supplier of laser cleaning technologies for semiconductor wafers.
- APPLIED MATERIALS, INC.’s largest acquisition to date was in 2011 when it acquired Varian Semiconductor Equipment Associates for $4.9B
- Other notable AMAT acquisitions included Scanning electron microscopes producer Etec Systems, Inc. (for $ 1.77B in Jan 2000) and glass electrodes manufacturer Applied Films (for $ 460M in May 2006)
AMAT Stock History
Founded on November 10, 1967, APPLIED MATERIALS, INC. was launched by Michael A. McKeilly with seed money from local investors and became one of the world’s leading manufacturers. After its IPO in 1972 at $10 per share, APPLIED MATERIALS, INC. began expanding globally and, under the guidance of its new CEO, James C. Morgan, became the first U.S. semiconductor equipment manufacturing company to spread its branches in Japan and China, in 1984.
In 1987, APPLIED MATERIALS, INC. introduced Precision 5000 CVD – a revolutionary system that established the company as the undisputed leader in single-wafer, multi-chamber fabrication architectures. In the next decade, AMAT made several acquisitions, including Etec Systems Inc., Oramir Semiconductor Equipment Ltd., Baccini and others.
In 2009 APPLIED MATERIALS, INC. completed a significant milestone when it opened the world’s largest commercial solar energy research centre and development facility in China. Later that year, the company acquired Semitool Inc, and in 2011, it acquired Varian Semiconductor.
In 2013, the company planned a major merger with Tokyo Electron to consolidate the two companies into a new conglomerate named Eteris. However, in 2015, the merger was scrapped due to antitrust concerns. In 2018, the company was listed in FORTUNE as one of the World’s Most Admired Companies.
APPLIED MATERIALS, INC. typically issues four dividends per year (excluding specials), with the quarterly yield steadily increasing since the early 2000s. The latest dividend issued in March 2022 came in at $0.26 per share payable on the AMAT common stock.
How to Trade APPLIED MATERIALS, INC.
APPLIED MATERIALS, INC. is one of the most valuable companies in the semiconductor equipment space. APPLIED MATERIALS, INC. shares are poised to benefit from the long-term tailwinds in the semiconductor industry. AMAT shares are becoming increasingly popular among traders with a historically strong balance sheet and a steadily rising dividend yield. Here are some factors investors should consider when trading APPLIED MATERIALS, INC. stocks:
- Competitor Performance
While APPLIED MATERIALS, INC. is an industry leader, there are still several contenders to keep an eye on when considering the company’s performance. AMAT’s top competitors include Tokyo Electron, Qualcomm, ASML, Lam Research, Arrow Electronics and KLA.
- Tariffs or Trade Agreements
As geopolitical tensions continue to mount, trade disputes, sanctions and tariffs could significantly impact the exports of major manufacturers such as APPLIED MATERIALS, INC.
- Supply Chain and Raw Material Dynamics
In the aftermath of a global pandemic, chip shortages plagued the markets. While this meant increased demand for the likes of APPLIED MATERIALS, INC., prolonged lockdowns in parts of China (where significant suppliers are located) have also cut the company off from the components needed to produce its semiconductor manufacturing equipment. At the same, raw material costs have surged, causing the company to decrease its earnings forecasts in 2022.
- Periodical Earnings Reports
Earnings reports include vital metrics such as net income, earnings per share, earnings from continuing operations, and net sales, enabling investors to gauge the company’s financial health. APPLIED MATERIALS, INC.’s fiscal year runs from November 1st to October 30th of the following year, with the company releasing quarterly reports at the end of every quarter.
AvaTrade APPLIED MATERIALS, INC. Stock Trading Information
- Applied Materials Stock Symbol: #AMAT
- Trading Times: Monday – Friday 14:30 – 20:59 GMT
- Country: USA
- Currency: USD
- Exchange: NASDAQ
- Leverage up to: 5:1
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** Disclaimer –While due research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.