Should I buy Applied Materials stock in 2025? Expert NZ Analysis

What is Applied Materials?

How much is the Applied Materials stock?

The price of Applied Materials stock is falling this week. As of now, AMAT is trading at $159.48 USD, showing a 1.31% drop over the last 24 hours and a weekly decline of 0.65%. The company’s market capitalisation stands at $129.68 billion, with a 3-month average volume of 7.92 million shares. The stock’s price-to-earnings (P/E) ratio is 19.43, it offers a 1.15% dividend yield, and has a beta of 1.71, reflecting notable volatility. For New Zealand investors, the current performance highlights both risk and opportunity in this global semiconductor leader.

Our full analysis of the Applied Materials stock

After a thorough review of Applied Materials' latest financial results and robust three-year share performance, this analysis synthesises a comprehensive set of metrics—ranging from fundamental indicators and technical signals to sector trends and competitive dynamics—leveraged via our advanced proprietary algorithms. This approach reveals a nuanced yet distinctly positive portrait of a global semiconductor equipment leader at a key juncture. So, why might Applied Materials stock once again emerge as a strategic gateway to the next upcycle in advanced manufacturing and AI-driven technology in 2025?

Recent Performance and Market Context

Applied Materials (NASDAQ: AMAT) has long been a barometer for the semiconductor industry. As of 29 May 2025, the stock trades at USD $159.48, mapping a six-month drawdown of -8.72% and a one-year retreat of -27.19% from its 52-week high ($255.89). This pullback, while noteworthy, is in line with a sector-wide correction following a period of exceptional outperformance driven by the 2023–2024 AI and semiconductor supercycle.

Several recent positive events underpin renewed optimism:

• Record Q4 Revenues: Applied Materials delivered all-time high quarterly and annual revenue, with Q4 FY2024 sales up 5% YoY to $7.05 billion and annual revenues reaching a record $27.18 billion (+2% YoY).
• Earnings & Cashflow Strength: Non-GAAP EPS rose 9% YoY to $2.32 in Q4, while annual GAAP EPS hit $8.61 (+6% YoY). Free cash flow generation—critical for growth and shareholder returns—remained exceptionally robust at $8.68 billion.
• Market Backdrop: The global shift toward onshoring semiconductor manufacturing (US, EU expansion), persistent AI infrastructure investments, and anticipated recovery in smartphone/consumer electronics demand collectively establish a favourable macroeconomic context.
• Analyst Consensus: A “Strong Buy” rating dominates, with target prices averaging $198–205, implying 28–30% upside from current levels.

In short, despite sector volatility, Applied Materials’ recent momentum confirms both operational resilience and positioning for renewed growth.

Technical Analysis

Technical indicators currently point to a cautiously bullish structure, increasing confidence that Applied Materials may be entering a new accumulation phase:

• Relative Strength Index (RSI, 14 days): 54.33, suggesting neither overbought nor oversold conditions. This neutral reading is supportive of further upside potential without immediate reversal risks.
• MACD (12,26,9): Positive at 3.33, signalling renewed buying momentum.
• Average Directional Index (ADX, 14): 14.98, reinforcing an emerging trend after a period of consolidation.

Moving Averages:

• The 5-day ($160.64), 20-day ($160.67), 50-day ($150.97), and 100-day ($160.89) moving averages are all signalling “Buy”, hinting at broad-based support and medium-term trend stabilisation. Only the 200-day MA ($172.78) suggests an overhang, and this is expected given the late-2024 correction.
• Support: A solid base appears near $156.53 (Pivot S3), while the next technical resistance is at $166.46 (Pivot R3)—offering potential for a sizable near-term swing.

The technical consensus—13 bullish, 5 neutral, 4 bearish signals—underscores the likelihood of a resumption in the upward trend, particularly as macro and sectoral tailwinds reassert themselves.

Fundamental Analysis

Applied Materials’ core investment thesis remains uncompromised:

• Revenue and Profit Growth: The company posted record 2024 revenues of $27.18 billion (+2% YoY) and operating cash flow of $8.68 billion, outpacing many sector peers. Non-GAAP EPS delivered a solid 9% YoY gain in Q4; GAAP margins remain best-in-class at 47.3%.
• Valuation: At a trailing P/E of 19.43 and a dividend yield of 1.15%, AMAT trades at a significant discount to historical highs and is attractively priced relative to global technology peers considering its profitability, growth outlook, and dominant sector position.
• Structural Advantages:
• Market Leadership: Applied Materials is the undisputed leader in materials engineering—a mission-critical field for ongoing advances in chip performance, yield, and manufacturing efficiency.
• Brand and IP: The company’s massive installed base and relentless R&D (2024: $4 billion earmarked for a new Californian R&D hub) create durable moats.
• AI Exposure: As semiconductor architectures rapidly evolve to support AI and data-intensive applications, Applied Materials is singularly well-placed to capture incremental demand.
• Global Reach: While there is significant exposure to China (37% of revenue), the company’s diversified geographic sales profile—including Korea, Taiwan, the US, Japan, and Europe—buffers against localised shocks and supports multi-currency revenue streams.

In summary, the company’s fundamentals justify renewed investor interest and support the case for future outperformance as cyclical headwinds subside.

Volume and Liquidity

Applied Materials continues to demonstrate robust market liquidity—an essential quality for institutional and retail investors alike:

• Average Daily Volume (3 months): 7.92 million shares, illustrating significant investor engagement throughout varying market cycles.
• Market Capitalisation: At $129.68 billion, the stock enjoys healthy coverage and indices inclusion, further supporting liquidity dynamics.

A free float with good breadth helps maintain dynamic valuations and facilitates swift entry and exit, reinforcing AMAT’s suitability for active portfolio strategies as well as core long-term holdings.

Catalysts and Positive Outlook

Several compelling catalysts underpin the positive scenario for AMAT:

• AI and Advanced Compute: AMAT’s leading technology is indispensable to the fabrication of next-generation chips, which are essential for AI, cloud computing, edge devices, and automotive electronics.
• $4B R&D Facility: The enormous investment in a new Californian R&D centre is set to accelerate new product cycles, foster incremental revenue streams, and enhance Applied Materials’ first-mover advantage.
• ESG Leadership and Innovation: With ongoing progress in energy-efficient chipmaking and sustainable manufacturing, Applied Materials continues to meet the evolving requirements of global customers and institutional stakeholders.
• Strategic M&A and Partnerships: The company remains active in forging alliances that can potentially broaden market access or complement its product suite.

Furthermore, sector macroforces—such as Western government incentives for local semi supply chains, global digitalisation, and 5G/AI rollouts—add tailwinds likely to favour AMAT disproportionately.

Investment Strategies

Applied Materials’ technical and fundamental position suggests several compelling avenues for entry:

• Short-Term: The proximity to $156.53 support and current consolidation phase may prove opportune for swing traders seeking a technical bounce toward $166.46 resistance or beyond, particularly on confirmation of positive sector news or technical breakouts.
• Medium-Term: Investors can benefit from tactical entries ahead of major catalysts—such as upcoming product launches, quarterly earnings, or positive macro data—each of which could trigger outsized moves as sentiment improves.
• Long-Term: The 1-year pullback, combined with ongoing R&D investment and structural industry growth, offers long-term value-driven participants a strategically low entry point. The current P/E, ongoing dividend payments, and global leadership in a must-have technology support a durable, growth-oriented holding case.

In all cases, portfolio allocation should remain sensitive to sector cyclicality, but the evidence increasingly favours a constructive stance.

Is it the right time to buy Applied Materials?

Bringing all elements together, Applied Materials currently presents:

• A fundamentally robust and globally diversified sector leader
• Proven financial outperformance with strong cash generation and margin enhancement
• Attractive valuation metrics following a meaningful correction from recent highs
• Clear bullish technical signals near critical support levels, previewing a likely trend reversal
• Structural exposure to the most dynamic segments of global technology—including AI, advanced manufacturing, and smart infrastructure
• Consensus analyst targets indicating 28–30% upside over the next 12–18 months

Given this confluence of technical and fundamental strengths, along with identifiable near- and long-term catalysts, Applied Materials seems to represent an excellent opportunity for NZ-based investors seeking global technology exposure. The fundamentals justify renewed interest, and all signs point to the stock entering a new bullish phase—as pivotal secular trends, disciplined management, and continued innovation reinforce its investment appeal. For those looking to position their portfolios at the forefront of tomorrow’s technological transformation, Applied Materials appears to offer not only resilience but also outstanding upside potential at this juncture.

How to buy Applied Materials stock in New Zealand?

Buying shares of Applied Materials (AMAT) online is both simple and secure when you use a regulated stockbroker, many of which are easily accessible in New Zealand. Investors generally have two main options: buying “spot” shares (owning real Applied Materials stock), or trading via Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Each method has its pros and cons, so it's important to understand how spot buying compares with CFDs before making your investment. You’ll find a detailed broker comparison further down this page.

Cash Buying

A cash (or "spot") purchase means you buy real shares of Applied Materials and become a direct shareholder. This is the most straightforward method: you own the stock, are entitled to dividends, and can hold your investment as long as you wish. Most NZ-regulated brokers charge a fixed commission per order, typically around NZ$5–NZ$15 depending on the platform, plus a small foreign exchange margin for buying US shares.

Example

If the Applied Materials share price is US$159.48 (approx. NZ$260), and you invest NZ$1,000, you can buy about 3 shares (NZ$1,000 ÷ NZ$260 ≈ 3), including a brokerage fee of around NZ$5.

✔️ Gain scenario:

If the share price rises by 10%, your position is now worth NZ$1,100.

Result: That’s a NZ$100 gross gain, or +10% on your investment (excluding fees and FX conversion).

Trading via CFD

CFD trading involves speculating on Applied Materials’ price movements without actually owning the underlying shares. With CFDs, you can use leverage—meaning you only need to put down a fraction of the total trade value, amplifying both potential returns and risks. Typical fees include the spread (the broker’s small markup on buy/sell prices) and daily overnight financing costs if you keep your position open for more than a day.

Example

With NZ$1,000 and 5x leverage, you take a CFD position that gives you NZ$5,000 market exposure to Applied Materials shares.

✔️ Gain scenario:

If AMAT rises by 8%, your position makes 8% × 5 = 40%.

Result: That’s a NZ$400 gain on an initial NZ$1,000—excluding spread and overnight fees.

Final Advice

Before investing, compare broker fees, currency conversion costs, and platform conditions to find the best solution for your needs (check our comparator below for more details). Your choice between spot buying and CFDs will ultimately depend on your investment goals, risk appetite, and preferred holding period. Both methods offer easy and secure access to Applied Materials shares for NZ retail investors—empowering you to take your first steps as a shareholder in one of the world’s leading technology companies.

Our 7 tips for buying Applied Materials stock

The latest news about Applied Materials

Applied Materials posted record annual revenue and exceeded analyst expectations, boosting confidence for NZ investors. For its 2024 fiscal year, Applied Materials reported a record revenue of $27.18 billion, representing a 2% annual increase, alongside record GAAP earnings per share and robust cash flow from operations. Notably, its quarterly results surpassed analyst forecasts, indicating continued resilience and operational strength despite sector volatility. This outperformance has drawn positive attention from global institutional investors—including those in New Zealand—who seek exposure to the semiconductor capital equipment sector, which underpins much of the technological infrastructure relevant to New Zealand’s advanced manufacturing and digital ambitions.

The technical outlook for AMAT remains constructive, with strong buy signals based on current indicators. Latest technical analysis as of 29 May 2025 reveals a generally bullish setup: key momentum indicators such as the MACD and ADX both give buy signals, and short- to medium-term moving averages also support a positive outlook. The consensus technical recommendation stands at “Buy,” outpacing neutral and bearish signals. For New Zealand funds and retail investors, who often follow technical momentum strategies for foreign equity exposure, this presents a favorable entry point in a sector aligned with the country’s long-term growth themes like digital transformation and advanced manufacturing.

Applied Materials continues to benefit from its critical role in enabling artificial intelligence and energy-efficient computing. Recent disclosures highlight that the company’s positioning at the heart of the semiconductor value chain makes it indispensable for innovations in AI and next-generation computing, both prioritized areas for technology investment in New Zealand’s public and private sectors. The company’s continued R&D leadership, evidenced by a new $4 billion research center project, underscores a commitment to sustaining technological advances—the kind valued by Kiwi investors and technology stakeholders seeking exposure to global innovation trends through equity portfolios.

The analyst consensus is strongly positive, with high target prices suggesting further upside for AMAT shares. As of this week, the consensus among professional equity analysts remains at “Strong Buy,” with average target prices in the $198–$205 range and some forecasts reaching $250—representing a 28–30% potential upside from current levels. Such an analyst stance is notable for New Zealand investors and KiwiSaver managers looking for high-conviction opportunities in the US market, especially given the global push for semiconductors and related supply-chain resilience, themes closely watched by New Zealand’s export-oriented and tech-forward sectors.

AMAT’s global presence and technology leadership indirectly support New Zealand’s electronics and systems manufacturing ecosystem. Though Applied Materials does not have a direct operational base in New Zealand, its technologies are integral to the global supply chains serving Australasian electronics, photonics, and advanced manufacturing. Major New Zealand tech and manufacturing firms, many engaged in exporting electronics or leveraging advanced chips, rely on a healthy semiconductor equipment sector. Thus, Applied’s ongoing growth and innovation contribute positively to New Zealand’s broader tech landscape, with its products often incorporated in advanced fabs supplying the region—offering Kiwi investors an indirect channel to global innovation and growth.

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.