Santa Clara, California-based Applied Materials, Inc. (AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. Valued at $103.1 billion by market cap, the company’s customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules, and other electronic devices manufacturers. The world’s largest semiconductor fabrication equipment supplier is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Thursday, May 15.

Ahead of the event, analysts expect AMAT to report a profit of $2.31 per share on a diluted basis, up 10.5% from $2.09 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect AMAT to report EPS of $9.36, up 8.2% from $8.65 in fiscal 2024. Its EPS is expected to rise 5.8% year over year to $9.90 in fiscal 2026. 

AMAT stock has underperformed the S&P 500’s ($SPX) 8.4% gains over the past 52 weeks, with shares down 25.9% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK) 4.2% gains over the same time frame.

On Feb. 13, AMAT reported its Q1 results, and its shares closed down more than 8% in the following trading session. Its adjusted EPS of $2.38 beat Wall Street expectations of $2.28. The company’s revenue was $7.17 billion, surpassing Wall Street forecasts of $7.15 billion. For Q2, AMAT expects its adjusted EPS to range from $2.12 to $2.48, and expects revenue in the range of $6.7 billion to $7.5 billion.

Analysts’ consensus opinion on AMAT stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 33 analysts covering the stock, 22 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” eight give a “Hold,” and one recommends a “Strong Sell.” AMAT’s average analyst price target is $203.74, indicating an ambitious potential upside of 35.1% from the current levels.