AMAT Price & AI Analysis — Applied Materials Inc | HeyTheo
Market Cap
530.3649B
Mega Cap
P/E Ratio
62.9
Fwd: 49.26
EPS (TTM)
$10.62
Div. Yield
0.32%
Theo Outlook
Applied Materials (AMAT) presents a bullish thesis with a $497.7B market cap, trailing P/E of 58.8, forward P/E of 55.87, TTM EPS of $10.66, and 11.4% YoY quarterly revenue growth to $29.0B, reflecting strong positioning in semiconductor equipment amid AI-driven chip demand. The stock trades at a premium justified by 29.7% profit margins and 39.7% ROE, signaling efficient capital allocation in a high-growth sector. Analysts target $532.34, implying upside from current levels.
Key catalysts include sustained semiconductor capex expansion, new product launches in advanced packaging and EUV-adjacent tools, and earnings momentum with 33.5% YoY quarterly EPS growth. Market expansion into AI accelerators and 3D NAND continues to drive revenue per share of $36.48, while the August 20, 2026 ex-dividend date (yield 0.29%) supports shareholder returns. Recent quarterly results through April 2026 underscore accelerating demand from foundry and memory customers.
Risks center on semiconductor cyclicality, potential regulatory scrutiny on export controls to China, and competition from ASML and Lam Research. Macro headwinds like higher interest rates could delay customer capex. Mitigations include AMAT's diversified portfolio across logic, memory, and display, 85% institutional ownership providing stability, and a beta of 1.67 that has historically rewarded long-term holders during recovery cycles.
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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
29.024B
EBITDA
9.275B
Gross Profit
14.209B
Operating Margin
31.9%
Profit Margin
29.3%
ROE
39.7%
Book Value
$30.11
Beta
1.672
52-Wk High
$669.22
52-Wk Low
$153.78
Avg Volume
25.8838M
PEG Ratio
1.959
Frequently Asked Questions
What is Applied Materials' business model?
Applied Materials supplies equipment, services, and software for manufacturing semiconductor chips, flat panel displays, and solar products. It generates revenue primarily through sales of manufacturing systems and recurring service contracts, with TTM revenue of $29.0B and gross profit of $14.2B.
What are AMAT's main revenue sources?
Revenue comes mainly from semiconductor systems (logic, memory, foundry), display, and solar equipment, plus services. TTM revenue reached $29.0B with 11.4% YoY growth, driven by AI-related chip demand and a revenue per share of $36.48.
What competitive advantages does AMAT hold?
AMAT benefits from deep technology moats in deposition, etching, and inspection tools, a global installed base generating high-margin services, and 39.7% ROE. Its 58.8 trailing P/E reflects premium valuation versus peers due to scale and innovation leadership.
What are the key risks for AMAT investors?
Primary risks include semiconductor industry cycles, U.S.-China export restrictions, and competition. The stock's 1.67 beta amplifies volatility; however, 85% institutional ownership and diversified end-markets provide some cushion, with the next earnings likely following the April 2026 quarter.
What is the growth outlook for AMAT?
Growth outlook remains positive with analyst target of $532.34, supported by AI capex and 0.335 quarterly EPS growth. Forward P/E of 55.87 and 0.29% dividend yield (ex-date August 20, 2026) suggest continued expansion in advanced packaging and memory markets.
