What Makes Applied Materials (AMAT) a Good Investment?

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the same period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% return and the S&P 500’s +14.8% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, SCCM Value Equity Strategy highlighted stocks such as Applied Materials, Inc. (NASDAQ:AMAT). Applied Materials, Inc. (NASDAQ:AMAT) offers manufacturing equipment, services, and software to the semiconductor, display, and related industries. The one-month return of Applied Materials, Inc. (NASDAQ:AMAT) was 2.07%, and its shares gained 32.04% of their value over the last 52 weeks. On November 18, 2025, Applied Materials, Inc. (NASDAQ:AMAT) stock closed at $225.12 per share, with a market capitalization of $179.34 billion.

SCCM Value Equity Strategy stated the following regarding Applied Materials, Inc. (NASDAQ:AMAT) in its third quarter 2025 investor letter:

“Our strong stock selection within Information Technology benefited relative performance. Applied Materials, Inc. (NASDAQ:AMAT) (+12.2%) reported better-than-expected fiscal third-quarter results, driven by strength in foundry, logic, and services, even as China demand moderated. While management guided to an 8% sequential revenue decline reflecting normalization in China and timing of leading-edge orders, the outlook remained constructive, with execution and profitability ahead of expectations. The company continues to benefit from structural growth in AI-related semiconductor capital spending, supported by leadership in gate-all-around, advanced DRAM, and packaging technologies, which together provide solid earnings visibility and long-term growth potential.”

In another article, we covered Applied Materials, Inc. (NASDAQ:AMAT) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.