AMAT Stock Analysis: Applied Materials | NASDAQ
Semiconductor Equipment & Materials | NASDAQ, USA | Market Cap: 445.356m USD | 12M Return: 177% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.01B
EPS Trend: 98.0%
Qual. Beats: 16
Rev. Trend: 95.1%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 10.5 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 major provider of materials engineering solutions, equipment, services, and software for the global semiconductor and related industries. The company operates through two main segments: Semiconductor Systems, which supplies capital equipment used in key wafer fabrication steps such as etch, deposition, chemical mechanical planarization, metrology and inspection, and ion implantation; and Applied Global Services (AGS), which delivers integrated solutions-including spares, upgrades, services, and factory automation software-designed to optimize equipment and fab performance.
The company serves manufacturers of semiconductor wafers, chips, and other electronic devices across major markets including the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Headquartered in Santa Clara, California, and incorporated in 1967, Applied Materials is classified within the Information Technology sector under the Semiconductor Materials & Equipment sub-industry, making it a key supplier to the broader chip manufacturing supply chain rather than a chip designer itself.
- China equipment revenue faces US export control headwinds
- Semiconductor Systems orders track AI-driven foundry and memory capex
- Applied Global Services margins expand on installed base growth
| Net Income: 8.51b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -4.17 > 1.0 |
| NWC/Revenue: 46.76% < 20% (prev 41.70%; Δ 5.07% < -1%) |
| CFO/TA 0.20 > 3% & CFO 7.99b > Net Income 8.51b |
| Net Debt (-973.0m) to EBITDA (11.1b): -0.09 < 3 |
| Current Ratio: 2.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (799.0m) vs 12m ago -1.96% < -2% |
| Gross Margin: 48.96% > 18% (prev 48.14%; Δ 0.82% > 0.5%) |
| Asset Turnover: 78.53% > 50% (prev 83.52%; Δ -4.99% > 0%) |
| Interest Coverage Ratio: 38.76 > 6 (EBIT TTM 10.7b / Interest Expense TTM 275.0m) |
| A: 0.34 (Total Current Assets 22.6b - Total Current Liabilities 9.00b) / Total Assets 40.3b |
| B: 1.47 (Retained Earnings 59.3b / Total Assets 40.3b) |
| C: 0.29 (EBIT TTM 10.7b / Avg Total Assets 37.0b) |
| D: 1.46 (Book Value of Equity 23.9b / Total Liabilities 16.4b) |
| Altman-Z'' = 10.48 = AAA |
| DSRI: 0.99 (Receivables 6.37b/6.24b, Revenue 29.0b/28.1b) |
| GMI: 0.98 (GM 48.14% / 48.96%) |
| AQI: 1.01 (AQ_t 0.29 / AQ_t-1 0.29) |
| SGI: 1.03 (Revenue 29.0b / 28.1b) |
| TATA: 0.01 (NI 8.51b - CFO 7.99b) / TA 40.3b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of July 20, 2026, the stock is trading at USD 529.66 with a total of 10,020,863 shares traded. Over the past week, the price has changed by -12.09%, over one month by -17.26%, over three months by +35.42% and over the past year by +177.01%.
Current recommended Stop Loss: 414.80 (which is 21.7% or 2.6 ATR below the current price).
Applied Materials has received a consensus analysts rating of 4.49. Therefore, it is recommended to buy AMAT.
- StrongBuy: 27
- Buy: 4
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 623.1 | 17.6% |
P/E Trailing = 52.9179
P/E Forward = 36.7647
P/S = 15.3444
P/B = 19.2415
P/EG = 1.4638
Revenue TTM = 29.0b USD
EBIT TTM = 10.7b USD
EBITDA TTM = 11.1b USD
Long Term Debt = 5.26b USD (from longTermDebt, last quarter)
Short Term Debt = 1.20b USD (from shortTermDebt, last quarter)
Debt = 7.27b USD (from shortLongTermDebtTotal, last quarter) + Leases 813.0m
Net Debt = -973.0m USD (calculated: Debt 7.27b - CCE 8.24b)
Enterprise Value = 444b USD (445b + Debt 7.27b - CCE 8.24b)
Interest Coverage Ratio = 38.76 (Ebit TTM 10.7b / Interest Expense TTM 275.0m)
EV/FCF = 83.20x (Enterprise Value 444b / FCF TTM 5.34b)
FCF Yield = 1.20% (FCF TTM 5.34b / Enterprise Value 444b)
FCF Margin = 18.40% (FCF TTM 5.34b / Revenue TTM 29.0b)
Net Margin = 29.31% (Net Income TTM 8.51b / Revenue TTM 29.0b)
Gross Margin = 48.96% ((Revenue TTM 29.0b - Cost of Revenue TTM 14.8b) / Revenue TTM)
Gross Margin QoQ = 49.90% (prev 48.99%)
Tobins Q-Ratio = 11.03 (Enterprise Value 444b / Total Assets 40.3b)
Interest Expense / Debt = 3.78% (Interest Expense 275.0m / Debt 7.27b)
Taxrate = 18.06% (1.88b / 10.4b)
NOPAT = 8.73b (EBIT 10.7b * (1 - 18.06%))
Current Ratio = 2.51 (Total Current Assets 22.6b / Total Current Liabilities 9.00b)
Debt / Equity = 0.30 (Debt 7.27b / totalStockholderEquity, last quarter 23.9b)
Debt / EBITDA = -0.09 (Net Debt -973.0m / EBITDA 11.1b)
Debt / FCF = -0.18 (Net Debt -973.0m / FCF TTM 5.34b)
Total Stockholder Equity = 21.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 23.02% (Net Income 8.51b / Total Assets 40.3b)
RoE = 39.78% (Net Income TTM 8.51b / Total Stockholder Equity 21.4b)
RoCE = 40.00% (EBIT 10.7b / Capital Employed (Equity 21.4b + L.T.Debt 5.26b))
RoIC = 28.14% (NOPAT 8.73b / Invested Capital 31.0b)
WACC = 13.13% (E(445b)/V(453b) * Re(13.29%) + D(7.27b)/V(453b) * Rd(3.78%) * (1-Tc(0.18)))
Discount Rate = 13.29% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -97.78 | Cagr: -2.04%
[DCF] Terminal Value 58.89% ; FCFF base≈5.55b ; Y1≈5.16b ; Y5≈4.68b
[DCF] Fair Price = 53.33 (EV 41.4b - Net Debt -973.0m = Equity 42.3b / Shares 794.0m; r=13.13% [WACC]; 5y FCF grow -8.87% → 2.50% )
EPS Correlation: 98.05 | EPS CAGR: 8.52% | SUE: 4.0 | # QB: 16
Revenue Correlation: 95.08 | Revenue CAGR: 3.64% | SUE: 1.11 | # QB: 1
EPS current Quarter (2026-07-31): EPS=3.39 | Chg30d=+0.14% | Revisions=+89% | Analysts=29
EPS current Year (2026-10-31): EPS=12.26 | Chg30d=+0.26% | Revisions=+40% | GrowthEPS=+30.2% | GrowthRev=+17.8%
EPS next Year (2027-10-31): EPS=16.75 | Chg30d=+3.04% | Revisions=+67% | GrowthEPS=+36.5% | GrowthRev=+27.5%
[Analyst] Revisions Ratio: +92% (up=33, down=0)