AMAT (Applied Materials) is Trading at near Fair Valuation for those in Search of a Great Semiconductor Company!

This morning, August 25th, 2025, I purchased a small amount of shares of AMAT.  The Fastgraphs chart below shows that the stock is trading at near fair valuation.  Thus, we have a great semiconductor company trading at near fair valuation.  If the stock falls more, I will add to my share count and dollar cost average down.  

 

Here is a screen shot of the past 13 year performance of AMAT versus the S&P500: 

Notice on the 13-year performance screen shot that with dividends reinvested, a $10,000 investment in October 2012 would be worth $184,000 today versus $56,000 for the S&P500.  AMAT had a compound growth of 25.51% versus a respectable 14.51% on the S&P500.  AMAT's dividend growth rate and compound dividend growth rate were 13-14% which is solid.  

I am always in search of great companies that are trading at a fair valuation that have a history of thrashing the S&P500.  They can be difficult to find but research and patience will reward investors. I am not a day trader.  I am a buy and hold investor looking out 3-5 years or more.  

References: 

Disclaimer: This blog has been created for sharing my personal investment ideas only. I do not receive any compensation for this blog or the content within. I am not an investment advisor or professional. This blog is my own personal opinion and is not meant to be a recommendation of the purchase or sale of any stock or ETF. Please do your own due diligence and research before deciding to purchase any investments of your own. 

 

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