Applied Materials Is Now More Expensive Than Its Dot-Com Era Peak. AI Demand Justifies the AMAT Stock Valuation.

Applied Materials (AMAT) is forcing investors to revisit a familiar question from tech history. The company now trades at a valuation above its late 1990s peak, when internet enthusiasm drove many technology stocks to unsustainable levels before the “Dot Com” bubble finally burst.

This time, though, the setup is more grounded in real demand. Their Chief Executive Officer, Gary Dickerson, says Artificial Intelligence (AI) is fueling a multi-year expansion in chip manufacturing, and the broader semiconductor market is moving in the same direction.