AMAT Stock Analysis: Applied Materials | NASDAQ
Semiconductor Equipment & Materials | NASDAQ, USA | Market Cap: 404.393m USD | 12M Return: 127.9% | US0382221051 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.85B
EPS Trend: 96.3%
Qual. Beats: 14
Rev. Trend: 93.3%
Qual. Beats: 2
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Applied Materials, Inc. (AMAT) is a U.S.-based provider of materials engineering solutions, equipment, services, and software for the global semiconductor and related industries, with operations spanning North America, Asia, and Europe. The company is headquartered in Santa Clara, California, was incorporated in 1967, and trades on NASDAQ as a mega-cap Information Technology stock.
AMAT operates through two segments: Semiconductor Systems, which supplies capital equipment for key wafer-fabrication steps such as etch, deposition, chemical mechanical planarization, metrology, inspection, and ion implantation; and Applied Global Services (AGS), which provides spares, upgrades, services, and factory automation software to optimize fab performance and productivity. Its customers include manufacturers of semiconductor wafers, chips, and other electronic devices.
The semiconductor equipment industry is highly cyclical and capital-intensive, with demand tied to wafer-fab investment cycles, and is concentrated among a small number of global suppliers. AMAT is among the largest players in this market, competing alongside other major equipment makers that serve leading foundries, memory producers, and integrated device manufacturers worldwide.
- China export controls limit advanced semiconductor equipment shipments
- AI-driven foundry capex boosts wafer fab equipment orders
- AGS services revenue grows on expanding installed base
| Net Income: 9.27b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -4.11 > 1.0 |
| NWC/Revenue: 47.79% < 20% (prev 41.36%; Δ 6.43% < -1%) |
| CFO/TA 0.19 > 3% & CFO 8.39b > Net Income 9.27b |
| Net Debt (-1.08b) to EBITDA (11.5b): -0.09 < 3 |
| Current Ratio: 2.42 > 1.5 & < 3 |
| Outstanding Shares: last quarter (800.0m) vs 12m ago -1.36% < -2% |
| Gross Margin: 49.40% > 18% (prev 48.50%; Δ 0.90% > 0.5%) |
| Asset Turnover: 79.34% > 50% (prev 83.64%; Δ -4.30% > 0%) |
| Interest Coverage Ratio: 39.73 > 6 (EBIT TTM 11.0b / Interest Expense TTM 277.0m) |
| A: 0.34 (Total Current Assets 25.1b - Total Current Liabilities 10.4b) / Total Assets 43.5b |
| B: 1.41 (Retained Earnings 61.4b / Total Assets 43.5b) |
| C: 0.28 (EBIT TTM 11.0b / Avg Total Assets 38.9b) |
| D: 1.43 (Book Value of Equity 25.6b / Total Liabilities 17.9b) |
| Altman-Z'' = 10.23 = AAA |
| DSRI: 1.22 (Receivables 7.69b/5.83b, Revenue 30.8b/28.6b) |
| GMI: 0.98 (GM 48.50% / 49.40%) |
| AQI: 0.96 (AQ_t 0.28 / AQ_t-1 0.29) |
| SGI: 1.08 (Revenue 30.8b / 28.6b) |
| TATA: 0.02 (NI 9.27b - CFO 8.39b) / TA 43.5b) |
| Beneish M = -2.82 (Cap -4..+1) = A |
As of October 13, 2026, the stock is trading at USD 497.53 with a total of 4,155,825 shares traded. Over the past week, the price has changed by -8.25%, over one month by +17.28%, over three months by -13.44% and over the past year by +127.94%.
Current recommended Stop Loss: 474.10 (which is 4.7% or 1.3 ATR below the current price).
Applied Materials has received a consensus analysts rating of 4.55. Therefore, it is recommended to buy AMAT.
- StrongBuy: 29
- Buy: 4
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 638.9 | 28.4% |
P/E Trailing = 43.9664
P/E Forward = 23.4192
P/S = 13.1139
P/B = 12.9262
P/EG = 0.8297
Revenue TTM = 30.8b USD
EBIT TTM = 11.0b USD
EBITDA TTM = 11.5b USD
Long Term Debt = 5.25b USD (from longTermDebt, last quarter)
Short Term Debt = 1.42b USD (from shortTermDebt, last quarter)
Debt = 8.15b USD (from shortLongTermDebtTotal, last quarter) + Leases 802.0m
Net Debt = -1.08b USD (calculated: Debt 8.15b - CCE 9.23b)
Enterprise Value = 403b USD (404b + Debt 8.15b - CCE 9.23b)
Interest Coverage Ratio = 39.73 (Ebit TTM 11.0b / Interest Expense TTM 277.0m)
EV/FCF = 71.75x (Enterprise Value 403b / FCF TTM 5.62b)
FCF Yield = 1.39% (FCF TTM 5.62b / Enterprise Value 403b)
FCF Margin = 18.23% (FCF TTM 5.62b / Revenue TTM 30.8b)
Net Margin = 30.05% (Net Income TTM 9.27b / Revenue TTM 30.8b)
Gross Margin = 49.40% ((Revenue TTM 30.8b - Cost of Revenue TTM 15.6b) / Revenue TTM)
Gross Margin QoQ = 50.31% (prev 49.90%)
Tobins Q-Ratio = 9.27 (Enterprise Value 403b / Total Assets 43.5b)
Interest Expense / Debt = 3.40% (Interest Expense 277.0m / Debt 8.15b)
Taxrate = 13.61% (1.46b / 10.7b)
NOPAT = 9.51b (EBIT 11.0b * (1 - 13.61%))
Current Ratio = 2.42 (Total Current Assets 25.1b / Total Current Liabilities 10.4b)
Debt / Equity = 0.32 (Debt 8.15b / totalStockholderEquity, last quarter 25.6b)
Debt / EBITDA = -0.09 (Net Debt -1.08b / EBITDA 11.5b)
Debt / FCF = -0.19 (Net Debt -1.08b / FCF TTM 5.62b)
Total Stockholder Equity = 22.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 23.84% (Net Income 9.27b / Total Assets 43.5b)
RoE = 40.44% (Net Income TTM 9.27b / Total Stockholder Equity 22.9b)
RoCE = 39.07% (EBIT 11.0b / Capital Employed (Equity 22.9b + L.T.Debt 5.25b))
RoIC = 28.77% (NOPAT 9.51b / Invested Capital 33.0b)
WACC = 14.04% (E(404b)/V(413b) * Re(14.26%) + D(8.15b)/V(413b) * Rd(3.40%) * (1-Tc(0.14)))
Discount Rate = 14.26% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -95.81 | Cagr: -1.94%
[DCF] Terminal Value 57.55% ; FCFF base≈5.70b ; Y1≈5.56b ; Y5≈5.55b
[DCF] Fair Price = 57.38 (EV 44.5b - Net Debt -1.08b = Equity 45.5b / Shares 793.6m; r=14.04% [WACC]; 5y FCF grow -3.47% → 2.50% )
EPS Correlation: 96.26 | EPS CAGR: 10.12% | SUE: 3.08 | # QB: 14
Revenue Correlation: 93.31 | Revenue CAGR: 4.82% | SUE: 1.46 | # QB: 2
EPS current Quarter (2027-01-31): EPS=4.20 | Chg30d=+0.15% | Revisions=+88% | Analysts=24
EPS current Year (2026-10-31): EPS=12.79 | Chg30d=-0.07% | Revisions=+25% | GrowthEPS=+35.7% | GrowthRev=+20.7%
EPS next Year (2027-10-31): EPS=18.47 | Chg30d=+0.06% | Revisions=+29% | GrowthEPS=+44.4% | GrowthRev=+34.8%
[Analyst] Revisions Ratio: +83% (up=25, down=1)