After A Large Run, Is Applied Materials Stock A Bet On AI's Future or Yesterday'

The chip-equipment giant is at the center of an AI-fueled boom with unprecedented demand, but you'll pay a steep premium for a stock whose biggest risk may be its own supply chain.

If you want to understand Applied Materials (AMAT), don't think of it as just another technology company. Think of it as a key link in the global artificial intelligence race. The company doesn't make the chips that power AI; it makes the complex, essential machinery that allows others to manufacture those chips. And right now, business is booming. Fueled by what management calls a "rapid global build-out of AI computing infrastructure," the stock has soared, gaining 260% over the past year and trading near its all-time high. The company just posted record revenue and earnings. This isn't a turnaround story; it's a demand story. The practical question for an investor today, after such a powerful move, is whether you're arriving early to a long-term AI supercycle or late to a party already in full swing.

Buying Applied Materials today means paying a significant premium, and it's important to be clear-eyed about that. The stock trades at a price-to-earnings ratio of 54.7, more than double the 24.3 multip

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/large-run-applied-materials-stock-023532728.html)