Is Applied Materials Stock Outperforming the S&P 500?

Applied Materials Inc_ campus sign-by Sundry Photography via iStock

Neha Panjwani

Wed, February 25, 2026 at 11:18 PM GMT+9 2 min read

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AMAT

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Santa Clara, California-based Applied Materials, Inc. (AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. Valued at $299.9 billion by market cap, the company’s customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules, and other electronic devices manufacturers.

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and AMAT definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the semiconductor equipment & materialsindustry. AMAT holds a commanding position in the semiconductor equipment market, particularly in deposition technology. Its leadership is backed by continuous investments in research and development, ensures that its technology remains cutting-edge, providing a competitive advantage in a rapidly evolving industry.

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Despite its notable strength, AMAT shares touched their 52-week high of $380.51 in the last trading session. Over the past three months, AMAT stock has gained 63.7%, outperforming the S&P 500 Index’s ($SPX) 2.8% gains during the same time frame.

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Shares of AMAT rose 47.1% on a YTD basis and climbed 124.2% over the past 52 weeks, notably outperforming SPX’s YTD marginal gains and 15.2% returns over the last year.

To confirm the bullish trend, AMAT has been trading above its 50-day and 200-day moving averages since mid-September, 2025, with slight fluctuations.

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Applied Materials’ strong performance is driven by AI demand and advanced node transitions. Customers are investing in 3D scaling and leading-edge tech, boosting growth. Management expects sustained wafer fab equipment spending and focus on advanced packaging.

On Feb. 12, AMAT reported its Q1 results, and its shares closed up more than 8% in the following trading session. Its adjusted EPS of $2.38 topped Wall Street expectations of $2.19. The company’s revenue was $7 billion, topping Wall Street forecasts of $6.9 billion. For Q2, AMAT expects its adjusted EPS to range from $2.44 to $2.84, and revenue in the range of $7.2 billion to $8.2 billion.

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AMAT’s rival, Lam Research Corporation (LRCX) shares lagged behind the stock, with a 42.7% uptick on a YTD basis but outpaced the stock with 193.1% gains over the past 52 weeks.

Wall Street analysts are bullish on AMAT’s prospects. The stock has a consensus “Strong Buy” rating from the 36 analysts covering it, and the mean price target of $395.78 suggests a potential upside of 4.7% from current price levels.

_ On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com _

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