Why Applied Materials Stock Was Trailing the Broader Market on Tuesday

Source The Motley Fool

Although Applied Materials (NASDAQ: AMAT) stock wasn't doing badly in late-session trading on Tuesday, there were plenty of other titles that were eclipsing it. Its rise was tempered by an analyst's price target cut, which dampened sentiment on the chipmaking equipment specialist's prospects.

With that moderate headwind, Applied Materials was rising by 1.7% on the day; meanwhile, the S&P 500 index was clocking a 2.3% increase.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

A $30-per-share chop

That morning, Tom O'Malley of storied bank Barclays reduced his Applied Materials price target to $160 per share, a notable shift from his previous estimation of $190.

In changing his price target, O'Malley maintained his equal-weight (hold, in other words) recommendation on the stock.

According to reports, the analyst's modification followed the updating of his models for Applied Materials business. The new projections consider the potential effect of the current set of tariffs imposed by the U.S. on its trading partners.

This is almost certain to negatively impact its business, even though exemptions have been made to certain popular tech products.

The trouble with tariffs

For its part, Applied Materials management is maintaining a brave face in an uncomfortable and still-unpredictable environment. Last month the company went so far as to declare a dividend raise (of 15% over its predecessor) and announce the launch of a new, $10 billion share buyback program.

Both moves signal to the market that the company is OK despite the turbulence, although investors seem resigned to the potential for notable damage to its business from the current tariff spat. I'd give it the benefit of the doubt, as it's an important producer of components for the indispensable chip industry.

Should you invest $1,000 in Applied Materials right now?

Before you buy stock in Applied Materials, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Materials wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,771!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $593,970!*

Now, it’s worth noting Stock Advisor’s total average return is 781% — a market-crushing outperformance compared to 149% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
U.S. Q3 Earnings Season Nears Close as Investors Eye Dell, HP Results.U.S. October PCE Price Index Released【The week ahead】TradingKey - Last week, concerns over an AI bubble, coupled with fading expectations for Federal Reserve rate cuts, triggered a broad sell-off in U.S. equities. The tech-heavy Nasdaq Composite (.IXIC.
Author  TradingKey
7 hours ago
TradingKey - Last week, concerns over an AI bubble, coupled with fading expectations for Federal Reserve rate cuts, triggered a broad sell-off in U.S. equities. The tech-heavy Nasdaq Composite (.IXIC.
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH and XRP Attempt Recovery Post-SelloffBitcoin trades back above $87,700 after a 20% drop, while Ethereum rebounds from support around $2,749 and XRP recovers above $2.08 off its $1.96 floor, as BTC, ETH and XRP all try to turn last week’s steep correction into the start of a broader recovery.
Author  Mitrade
12 hours ago
Bitcoin trades back above $87,700 after a 20% drop, while Ethereum rebounds from support around $2,749 and XRP recovers above $2.08 off its $1.96 floor, as BTC, ETH and XRP all try to turn last week’s steep correction into the start of a broader recovery.
placeholder
2025 Black Friday is coming! Which stocks may see volatility?Coming on the day right after Thanksgiving in the United States, Back Friday marks the start of the holiday shopping season. Sales data from this shopping frenzy day reflects investor confidence and consumer trends. The National Retail Federation (NRF) predicts that holiday season (Nov and Dec) retail sales in 2025 will likely exceed $1 trillion for the very first time, which represents a year-over-year increase of 3.7 to 4.2 percent. Historic data from the past decade show that the retail sector has generally outperformed the S&P 500 during the weeks before and after Black Friday. The following retailing companies are expected to be big winners:
Author  Insights
12 hours ago
Coming on the day right after Thanksgiving in the United States, Back Friday marks the start of the holiday shopping season. Sales data from this shopping frenzy day reflects investor confidence and consumer trends. The National Retail Federation (NRF) predicts that holiday season (Nov and Dec) retail sales in 2025 will likely exceed $1 trillion for the very first time, which represents a year-over-year increase of 3.7 to 4.2 percent. Historic data from the past decade show that the retail sector has generally outperformed the S&P 500 during the weeks before and after Black Friday. The following retailing companies are expected to be big winners:
placeholder
Bitcoin Volatility Spikes: Is Options-Driven Pricing Making a Comeback?Bitcoin's volatility is surging, suggesting a shift back to options-driven price action seen before Bitcoin ETFs were launched.
Author  Mitrade
14 hours ago
Bitcoin's volatility is surging, suggesting a shift back to options-driven price action seen before Bitcoin ETFs were launched.
placeholder
USD/JPY gathers strength to near 156.50 on mixed Fed signals The USD/JPY pair posts modest gains near 156.50 during the early Asian session on Monday. Less dovish Federal Reserve (Fed) expectations could provide some support to the US Dollar (USD) against the Japanese Yen (JPY).
Author  FXStreet
16 hours ago
The USD/JPY pair posts modest gains near 156.50 during the early Asian session on Monday. Less dovish Federal Reserve (Fed) expectations could provide some support to the US Dollar (USD) against the Japanese Yen (JPY).
goTop
quote