Should Applied Materials’ (AMAT) US Investments With Apple and TI Prompt a Closer Look From Investors?

• Recently, Apple announced that Applied Materials is working with both Apple and Texas Instruments to enhance the U.S. semiconductor manufacturing supply chain by supplying equipment from its Austin, Texas facility, while also investing over US$200 million to build a new advanced manufacturing site in Chandler, Arizona.
• This substantial expansion not only supports major industry partnerships but also signals an increased focus on domestic job creation and U.S. semiconductor self-sufficiency amid strong demand and national interest in supply chain resilience.
• We'll assess how Applied Materials' investment in U.S.-made semiconductor equipment could influence its investment narrative and future growth prospects.

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Applied Materials Investment Narrative Recap

To be a shareholder in Applied Materials, you tend to believe in the long-term importance of semiconductor manufacturing innovation and the company's ability to capitalize on AI-driven device architecture and U.S. manufacturing expansion. The recent partnership with Apple and Texas Instruments, as well as the Arizona investment, strengthens Applied’s domestic manufacturing presence but does not materially alter the main short-term catalysts, AI and advanced node demand, or shift the primary risk of exposure to China and related trade restrictions.

The most relevant recent announcement is Applied’s plan to invest over US$200 million in a new Arizona facility, partnering closely with leading U.S. chipmakers. This move reinforces the growth catalyst of high-velocity ecosystem collaboration and supports ongoing technological co-innovation, directly tying into secular demand trends in AI and advanced packaging equipment.

However, investors should be aware that despite these U.S. expansions, the persistent impact of trade restrictions on China-related revenue remains a key risk that could...

Read the full narrative on Applied Materials (it's free!)

Applied Materials' outlook forecasts $33.2 billion in revenue and $9.1 billion in earnings by 2028. This implies a 5.8% annual revenue growth rate and a $2.3 billion increase in earnings from the current $6.8 billion level.

Uncover how Applied Materials' forecasts yield a $204.16 fair value, a 10% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community provided 13 independent fair value estimates for Applied Materials shares, spanning from US$150.26 to US$204.16. Investor opinions can differ sharply, especially given ongoing worries about trade restrictions and their effects on future revenue, explore several perspectives to inform your own view.

Explore 13 other fair value estimates on Applied Materials - why the stock might be worth 19% less than the current price!

Build Your Own Applied Materials Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Applied Materials research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Applied Materials research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Applied Materials' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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