We recently published a list of 10 Stocks That Could Skyrocket After Jensen Huang’s Earnings Call. In this article, we are going to take a look at where Applied Materials, Inc. (NASDAQ:AMAT) stands against other stocks that could skyrocket after Jensen Huang’s earnings call.
DeepSeek AI revelations were the biggest concern for investors when the month started. Many had started questioning if investing so much in AI infrastructure was worth it. Since then, the market sentiment has turned positive again and many of the stocks have recovered. We are now closing in on the most anticipated earnings call of the year so far: Jensen Huang telling us on 26th February how his company performed in the previous quarter.
Investing in the supply chain of big companies has proven beneficial over the years. As the stronger and the bigger company grows, it helps the smaller companies which are an important part of the supply chain also grow.
The Santa Clara-based chipmaker’s earnings will affect the whole market, not just its suppliers. Analysts expect an earnings beat on both the EPS and revenue. This is what the KeyBanc analysts had to say about the earnings:
“Despite prior concerns regarding constraints associated with the ramp of GB200 NVL servers, we expect NVDA to report strong F4Q results, which we anticipate will solidly beat, and to guide F1Q conservatively and moderately higher than consensus.”
We decided to take a look at companies that will benefit from the above-mentioned earnings beat. To come up with our list of 10 stocks that could skyrocket after Jensen Huang’s earnings call, we looked at stocks that are major suppliers of the company.
A technician in a clean room assembling a semiconductor chip using a microscope.
Applied Materials, Inc. (NASDAQ:AMAT)
Applied Materials, Inc. provides manufacturing software, equipment, and services to display, semiconductor, and other related industries. It operates in Applied Global Services, Semiconductor Systems, and Display segments. The stock is experiencing a downturn after the company reported its Q1 2025 earnings results. Last year’s returns are -9.6% though, nothing to write home about.
AMAT is an integral part of the supply chain of many semiconductor companies, selling equipment and software that are used to manufacture chips. The downturn in the company’s stock may soon reverse if Jensen Huang reports a solid quarter for his company this week. It already reported margin improvement and is expected to continue doing so in the near term as it grows with the rest of the industry.
There are concerns about the company’s ability to generate a healthy cash flow consistently. Its free cash flow declined 75% YoY but with a strong balance sheet consisting of $8.2 billion in cash and equivalents and short-term investments and $6.2 billion in debt, the company’s business isn’t threatened by this deteriorating cash flow.
Overall, AMAT ranks 2nd on our list of stocks that could skyrocket after Jensen Huang’s earnings call. While we acknowledge the potential of AMAT as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as AMAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
