AMATNASDAQ— Applied Materials Inc Price & Analysis

Applied Materials Inc

TECHNOLOGY — SEMICONDUCTOR EQUIPMENT & MATERIALS

$454.71

+$18.80+4.31%

Market Cap: $345.94B; Mega Cap
P/E Ratio: 37.64; Fwd: 24.75
EPS (TTM): $11.58
Div. Yield: 0.45%

Technical Summary

RSI (14)39.75Neutral

SMA (50)$533.27Bearish

SMA (200)$406.28Bullish

MACD-23.2807Bearish

Bollinger$423.48 – $555.00Mid

Stochastic14.99Oversold

Theo Outlook

Applied Materials (AMAT) presents a bullish thesis with a $360.9B market cap, trailing P/E of 39.2, EPS of $11.60, and 24.8% YoY quarterly revenue growth to $30.8B TTM. Strong profitability metrics including 30% profit margin and 41.1% ROE support continued expansion in the semiconductor equipment sector amid rising AI and chip demand. Forward P/E of 24.45 suggests reasonable valuation relative to growth trajectory. Key catalysts include sustained earnings momentum from semiconductor manufacturing equipment leadership, with quarterly revenue growth of 24.8% and analyst ratings showing 4 strong buy and 28 buy recommendations targeting $640.89. Growth drivers encompass expansion in advanced packaging, display, and solar equipment alongside AI-driven foundry investments, positioning AMAT for further market share gains in high-growth segments. Risks include cyclical semiconductor downturns, intense competition from peers like ASML, and macro headwinds from trade tensions or reduced capex. Mitigations involve diversified revenue across equipment and services, robust balance sheet with $10.2B EBITDA, and strategic focus on high-margin AI applications to buffer volatility. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Analysis generated by HeyTheo AI on Sep 7, 2026.

Company Overview

Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, in Silicon Valley.

Fundamental Snapshot

Revenue: $30.84B
EBITDA: $10.15B
Gross Profit: $15.23B
Operating Margin: 33.7%
Profit Margin: 30.0%
ROE: 41.1%
Book Value: $32.29
Beta: 1.62
52-Wk High: $738.88
52-Wk Low: $160.86
Avg Volume: 5.96M
PEG Ratio: 0.88

Frequently Asked Questions

What is Applied Materials' business model?

Applied Materials supplies equipment, services, and software for semiconductor chip manufacturing, flat panel displays, and solar products. It generates revenue primarily through sales of manufacturing equipment and recurring service contracts, with TTM revenue of $30.8B and 30% profit margin.

What are AMAT's main revenue sources?

Revenue comes from semiconductor equipment (majority), display, and solar products, plus services. TTM revenue reached $30.8B with 24.8% YoY quarterly growth, supported by high-margin offerings in advanced packaging and AI-related tools.

What competitive advantages does AMAT have?

AMAT leads in semiconductor equipment with strong R&D, global scale, and integration across chip production steps. Its 41.1% ROE, 39.2 trailing P/E, and 86.4% institutional ownership reflect durable moats versus competitors in a high-barrier industry.

What are the key risks for AMAT stock?

Key risks include semiconductor cycle volatility, competition, and macro/trade headwinds. The stock trades at a 39.2 P/E with 0.45% dividend yield; mitigations include diversification and $10.2B EBITDA supporting resilience through downturns.

What is the growth outlook for AMAT?

Growth outlook is positive with 24.8% YoY revenue growth, EPS of $11.60, and analyst target of $640.89. AI and chip demand drive expansion, with forward P/E of 24.45 indicating upside from current levels near the 50-day moving average of $533.72.