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Applied Materials - AI Stock Analysis

Analysis generated November 29, 2024

Applied Materials is a leading provider of advanced materials engineering solutions used to produce virtually every new chip and advanced display in the world. The company's equipment, services, and software help accelerate the semiconductor and display applications innovations that are transforming industries and shaping the future. With a diverse customer base, a focus on research and development, and consistent financial performance, Applied Materials stands strong in its sector.

Fundamental Analysis

An evaluation of Applied Materials' recent financial performance indicates a mixed but generally positive outlook. The revenue for the last quarter was $6.79 billion, which represents a 2.78% increase compared to the previous quarter and a 6.32% increase year-over-year. This growth in revenue underscores the company's capability to expand its market presence and capture more sales.

Net income for the last quarter was $1.71 billion. While this signifies a 0.99% decrease compared to the previous quarter—a point of concern—it does show a 9.29% increase year-over-year, reflecting overall improvement in profitability. EBITDA for the last quarter stood at $2.04 billion, decreasing by 5.21% from the previous quarter, but marking a 1.75% increase year-over-year.

The current Price-to-Earnings (P/E) ratio is 19.87, which is within a normal range, neither exceptionally high nor low. The P/E ratio suggests that the stock is fairly valued, reflecting market confidence in the company's earnings potential.

Technical Analysis

From a technical perspective, Applied Materials' stock price today is $176.87. While this reflects a 6.76% decrease compared to a month ago, which might be worrisome in the short term, it shows a 19.01% increase compared to a year ago, indicating a positive long-term trend. The overall trend remains bullish.

The stock's Simple Moving Average (SMA10) is $173.78, higher than the previous SMA10 of $172.98, suggesting a potential upward trend. However, the Relative Strength Index (RSI) stands at 71.7, which indicates a potentially overbought condition and could signal a bearish reversal in the near future.

Alternative Data Analysis

Examining alternative datasets, Applied Materials' job listings have risen by 16% recently, totaling 866 open positions. This growth in job postings suggests the company is in a phase of expansion and investing in its workforce, both healthy signs for future growth.

Employee sentiment remains neutral, indicating that internal morale and outlooks have neither improved nor deteriorated significantly. Customer acquisition shows no significant change, with an estimated 410,000 visitors to their website. Similarly, customer engagement on social media remains static with 14,000 Twitter followers.

Applied Materials also has an AI score of 67 from AltIndex’s predictive model, which leverages fundamental, technical, and alternative data to generate stock price forecasts. This score is interpreted as a buy signal.

Conclusion and Recommendation

The combined analysis of fundamental, technical, and alternative data presents a nuanced picture of Applied Materials. The company showcases solid year-over-year growth in revenue and net income, though quarter-to-quarter decreases in net income and EBITDA warrant caution. The technical indicators hint at a bullish longer-term trend, despite short-term vulnerabilities signaled by the RSI.

Alternative data points to an ongoing expansion as evidenced by the increase in job postings, while employee sentiment and customer engagement remain neutral. With an AI score signaling a buy, the comprehensive evaluation suggests Applied Materials holds promise for continued growth, although investors should remain attentive to short-term fluctuations and potential risks.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.