Applied Materials Stock Up 50% YTD, 14.6% Weekly Surge on AI Demand
Applied Materials shares have rallied over 50% year-to-date, outpacing ASML’s 36% gain and narrowing ASML’s valuation premium to just 17%, the tightest since 2014. The stock also surged 14.6% over the past week, driven by AI-related data center equipment demand.
1. Year-to-Date Performance and Peer Comparison
Applied Materials has gained over 50% year-to-date, outpacing ASML’s 36% increase. This performance has compressed ASML’s valuation premium to Applied Materials to roughly 17%, the narrowest gap since 2014.
2. Weekly Surge and AI Demand Drivers
In the past week, Applied Materials stock surged 14.6%, fueled by heightened demand for AI-centric data center equipment. Investors are betting on continued semiconductor capital spending driven by generative AI workloads.
3. Valuation Implications
The narrowed premium reflects shifting market sentiment around advanced lithography versus broad chip equipment makers. With Applied Materials trading at lower multiples relative to ASML and Lam Research, valuation tensions may influence future portfolio allocations.