What's Going On With Applied Materials (AMAT) Shares?

Shares of Applied Materials Inc AMAT are trading higher by 2.1% to $169.17 during Wednesday’s session as investors anticipate fourth-quarter earnings from NVIDIA Corp after the market close. The stock is rallying alongside broader strength in the semiconductor sector.

What To Know: Applied Materials, a leading provider of semiconductor manufacturing equipment, supplies fabrication tools essential for AI chip production. As AI adoption accelerates, the demand for high-performance computing and data centers is surging, benefiting Applied Materials.

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The stock's movement follows reports of potential U.S. restrictions on semiconductor exports to China, which could impact global supply chains. However, investors may remain focused on near-term growth, particularly the AI boom fueling semiconductor equipment demand.

Additionally, large AI investment announcements from Apple Inc and Meta Platforms Inc this week may be buoying the industry. These tech giants are ramping up spending on AI infrastructure, which could translate into increased orders for semiconductor equipment suppliers like Applied Materials.

Expectations for NVIDIA's earnings remain high, with analysts predicting strong AI-driven guidance. Since Applied Materials provides critical manufacturing tools for chipmakers, a bullish NVIDIA outlook could signal continued demand for its products.

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How To Buy AMAT Stock

By now you're likely curious about how to participate in the market for Applied Materials – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Applied Materials, which is trading at $168.56 as of publishing time, $100 would buy you 0.59 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, AMAT has a 52-week high of $255.89 and a 52-week low of $158.96.