By Nigam Arora
2218% Gain
AMAT is long from $16. It is trading at $370.95 as of this writing. This represents a gain of over 2218%. On earnings, the stock jumped more than 10%. Earlier this morning, AMAT traded as high as $376.32.
This type of long-term performance is not the result of luck. It is the result of early positioning, patience, and disciplined execution through multiple market cycles.
Blowout Earnings
AMAT reported EPS of $2.38 versus $2.21 consensus. Revenue came in at $7.01B versus $6.88B consensus.
Q2 EPS projection is $2.64 ± $0.20 versus consensus of $2.28.
Q2 revenue projection is $7.65B ± $500M versus consensus of $7.02B.
These results reflect strong operational execution, expanding margins, continued pricing power, and sustained demand from leading-edge semiconductor manufacturers.
Importantly, this is not a one-quarter phenomenon. It reflects a broader trend of rising capital expenditures across the semiconductor industry driven by AI, advanced computing, and next-generation applications.
Prime AI Beneficiary
AMAT is one of the world’s largest manufacturers of semiconductor manufacturing equipment. As demand for increasingly complex semiconductors for artificial intelligence continues to rise, so does the demand for advanced manufacturing tools.
AI chips require smaller nodes, higher yields, and more sophisticated fabrication processes. Every major advancement in AI hardware increases the need for precision deposition, etching, inspection, and metrology tools, areas where AMAT has dominant positioning.
As AI expands across cloud infrastructure, data centers, autonomous systems, robotics, healthcare, and enterprise applications, AMAT stands to benefit regardless of which specific chip designer or platform ultimately dominates.
This creates a powerful, long-term tailwind that extends well beyond short-term market cycles.
Picks And Shovels Play
The advantage of investing in AMAT is that you do not have to worry about whether OpenAI’s ChatGPT wins, Google’s Gemini wins, or Anthropic’s Claude wins.
You do not need to worry about whether Nvidia remains dominant in the AI chip market.
You do not need to worry about who wins the High Bandwidth Memory battle.
An analogy is the California Gold Rush. During the gold rush, some explorers became very wealthy, but most went bankrupt. However, almost all merchants who sold picks and shovels became wealthy.
AMAT represents the modern equivalent of the picks-and-shovels provider to the AI gold rush. It supplies the critical infrastructure that enables every major participant in the semiconductor ecosystem.
This creates diversification, durability, recurring demand, and structural competitive advantage.
In uncertain technological races, infrastructure providers tend to win consistently.
Ahead Of The Curve
As has been the pattern for two decades, The Arora Report recognizes trends early. This is how long-time members were positioned in AMAT at $16 and now have a gain of 2218%.
The mistake most investors make is investing based on the present. They suffer from recency bias. They chase what is already popular and ignore what is quietly building momentum.
They buy when the story is obvious and sell when uncertainty appears.
The way to become a successful investor is to get ahead of the curve and look ahead to where the industry will be several years from now.
This is exactly what The Arora Report helps you to do.
It is not as simple as it sounds. To be successful, one must bring a high level of discipline, analytical rigor, risk management, emotional control, and long-term thinking.
This is where the six screens of the ZYX Change Method shine. The method integrates fundamentals, technicals, macro trends, institutional behavior, sentiment, and risk analysis into a unified framework.
This systematic approach reduces emotional decision-making and increases consistency over time.
Zones
To understand the zones, investors need to recognize that AMAT is a highly volatile stock and can trade in wide ranges during market cycles.
The best strategy is not to buy when everybody loves the stock, like right now—when headlines are glowing and the momo crowd is rushing in as if there is no tomorrow.
The best strategy is to buy when:
- The company misses earnings
- The stock drops due to temporary issues
- Or sentiment turns negative despite strong long-term fundamentals
This is how smart money operates. This is how disciplined investors should operate.
They buy when fear is high and sell when euphoria dominates.
Volatility is not risk when managed properly—it is an opportunity.
For those following the Good Way, due to the recent run-up, the Buy Now rating is *** (To see the locked content, please take a 30 day free trial).
For those following the Best Way, the buy zone is $*** – $***.
To learn about the Good Way and the Best Way, please see the Getting A Running Start Guide.
The recommended quantity is ***% – ***%, reflecting both conviction and prudent diversification.
The very long-term target is being raised to $553 – $578.
This reflects continued earnings growth, expanding margins, increasing AI exposure, rising capital spending, and long-term industry tailwinds.
This is a very long-term position designed to benefit from multi-year structural trends.
What To Do Now
Those in the stock may consider continuing to hold.
Those not in the stock may consider following the parameters given above and waiting patiently for favorable zones.
Do not chase.
Let the market come to you.
Remember: patience, discipline, and preparation separate long-term winners from short-term momo crowd speculators.
Note: Signal(s) to enter, add, reduce, exit, hold or change.
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This post was just published on ZYX Buy Change Alert.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
