Applied Materials, Inc. AMAT shares are trading higher by 3.28% to $203.66 during Wednesday’s session. Shares of several semiconductor stocks are trading higher for the session. The sector may be rebounding after falling amid a broader market dip on Tuesday.
What Happened: Tuesday’s sell-off came in the wake of Iran’s missile attack on Israel, following the killing of Hezbollah leader Hassan Nasrallah. This marked the first direct strike by Iran on Israel since April, raising fears of further escalation in the region. Investors initially reacted by fleeing risk assets, with tech stocks hit the hardest, as defense and oil stocks surged on the news.
Read Also: Tesla Stock Plunges 3% Despite Q3 Deliveries Exceeding Consensus And Growing Year-Over-Year
Applied Materials, which supplies crucial equipment to the semiconductor industry, was no exception to the initial market reaction. Its stock fell along with the broader technology sector, which saw heavy selling as uncertainty over potential global instability increased. The Nasdaq 100 was down 2% during Tuesday trrading as investors sought safer assets like gold and oil, which spiked amid the heightened tensions.
What Else: Investors may have viewed Tuesday’s sell-off as an overreaction, as Applied Materials remains a critical player in the global chip supply chain, which continues to experience strong demand despite geopolitical uncertainties.
Furthermore, the U.S. government’s response in support of Israel, along with increased military presence in the region, appeared to calm market nerves, leading to a recovery in tech stocks.
Investors also took into account that while Middle Eastern tensions can have short-term impacts on global markets, companies like Applied Materials, which are deeply embedded in the long-term trends of technology and innovation.
Is AMAT A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Applied Mat‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Applied Materials does pay a dividend, which yields 0.79% per year as of the closing price on Oct. 2, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
For example, if you're looking to earn an annualized return of 1180.62%, you'll need to buy a share of PIMCO Dynamic Income by the Oct. 11, 2024. Once done, you can expect to receive a nominal payout of $0.13 on Nov. 1, 2024.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Applied Mat will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
According to data from Benzinga Pro, AMAT has a 52-week high of $255.89 and a 52-week low of $129.23.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
