Jim Cramer highlights Applied Materials’ potential beyond its earnings ratio.
Jim Cramer commented on Applied Materials Inc (AMAT), suggesting that there is more to the company than its current earnings multiple indicates. As of the last close, AMAT was priced at US$514.88, reflecting a 1.81% decline for the day. Over the past week, the stock has gained 1.81%, and it has increased by 14.50% over the last month, showcasing a strong upward trend year-to-date with a remarkable 94.33% increase.
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Applied Materials Inc
AMAT.US
AMAT.US
Applied Materials Inc
WealthAwesomeMarket cap
$404.39B
P/E
44.0x
Div. yield
0.38%
Div. / share
$1.98
52W high
$738.88
52W low
$202.28
1W change
-3.73%
Beta
1.59
Analyst Price Targets
Based on 40 analysts covering AMAT · as of Oct 5, 2026
Wall Street analysts forecast AMAT stock price to rise 25.4% over the next 12 months.
Consensus
Strong Buy4.55 / 5.00
Avg. Target
C$638.94
+25.4% Upside
Current Price
C$509.57
Last close
Analyst Breakdown (40 analysts)
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on AMAT's historical volatility
30-Day Vol
47.1%
Annualized
90-Day Vol
74.7%
Annualized
Trend (90d)
-50.0%
Annualized drift
90d Mean
C$426.24
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$480.12 | C$408.06 – C$564.91 |
| 60 trading days | C$452.38 | C$359.44 – C$569.35 |
| 90 trading days | C$426.24 | C$321.61 – C$564.91 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
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Investor takeaway: Investors might find value in Cramer's insights as they evaluate Applied Materials' growth potential in the semiconductor sector.
Last Close at US$514.88 with a 1D Drop of 1.81%
The stock's price remains well above both its 50-day moving average of US$487.49 and its 200-day moving average of US$430.48, indicating a generally strong performance despite the recent dip.
Bull case
Cramer’s remarks could boost investor confidence in Applied Materials, especially regarding its growth prospects in the semiconductor industry, which is vital for technological advancements.
Bear case
Despite the positive commentary, the stock's recent decline of 1.81% may reflect some investor hesitation about its valuation and future performance.
Cramer's Insights on Applied Materials
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In a recent commentary, Jim Cramer pointed out that Applied Materials Inc (AMAT) has significant potential that may not be fully reflected in its earnings multiple. The stock’s P/E ratio stands at 44.92, suggesting that it is valued at a premium compared to its earnings. This perspective aligns with the company's robust growth trajectory, particularly as it continues to play a vital role in the semiconductor market, which is essential for various technological applications.
Current Stock Performance and Volume
Applied Materials closed at US$514.88, marking a 1.81% decline for the day. The trading volume was 1,084,342 shares, which is approximately 61% of its 20-day average volume of 6,198,066 shares. The stock has shown a strong performance over the past month with a 14.50% increase and a significant 94.33% gain year-to-date. Additionally, AMAT's current price is 5.6% above its 50-day moving average of US$487.49 and 19.6% above its 200-day moving average of US$430.48.
What’s Next for Investors?
Investors should watch how Cramer’s comments influence market sentiment and whether the stock can maintain its upward momentum. The stock is currently trading within 58% of its 52-week range of US$202.28 to US$738.88. With an average analyst target of US$638.94, there is an implied move of 24.1% to this target, suggesting potential growth ahead if investor confidence remains strong. The profit margin stands at 30.0%, and the return on equity (ROE) is 41.1%, indicating strong fundamentals.
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