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Applied Materials
S&P 500 Nasdaq 100
$367.0B
Market Cap
26.4
P/E
3.33
PEG
36.6%
ROCE
35.5%
ROE
0.32
D/E
29.2%
OPM
-41.7%
% from 52W High
91
α RS
🔍 AMAT is showing a high-conviction setup because it matches 18 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and RS Rating is 91 (top decile vs market). Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 18/39 · Technology in Leading quadrant · RS Rating 91
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Currency-adjusted total returns for AMAT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
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About

Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding AMAT
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 1.72M $586.9M 0.75% Mar 2026
Tiger Global Management Tiger Global Management LLC 1.66M $566.3M 2.48% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$7.91B
+11% YoY
Operating Income
$2.54B
+18% YoY
Operating Margin
32.1%
+1.4pp YoY
Net Income
$2.29B
+18% YoY
What Went Right
  • Record revenue and EPS driven by AI demand across foundry, DRAM, advanced packaging.
  • Semi Systems revenue record $5.97B, up 16% sequential, 10% YoY.
  • AGS record $1.67B, up 17% YoY; raised growth outlook to mid-teens.
What to Watch
  • China exposure 24% of Semi Systems plus AGS; flat to slightly higher expected.
  • ICAPS business flat to slightly higher due to capacity digestion; utilizations improving.
  • Supply chain constraints remain a pacing factor; manufacturing capacity doubled but supplier ramp takes time.
Management Guidance
  • Q3 FY2026 revenue: $8.95B ±$500M (up ~23% YoY).
  • Q3 non-GAAP EPS: $3.36 ±$0.20 (up ~36% YoY).
  • Semi Systems revenue ~$6.9B; AGS ~$1.75B; other ~$300M; non-GAAP gross margin ~50.1%.
Investor Lens
The investment thesis strengthens significantly. AI demand is accelerating and diversifying, with Applied capturing the fastest-growing segments (leading-edge logic, DRAM, advanced packaging). The company raised equipment growth to 30%+ for CY2026, and 2027 is expected to be another strong record year. Expanded long-term visibility (eight-quarter rolling forecasts) and AGS growth upgrade (mid-teens) support sustained revenue and margin expansion.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q2 revenue $7.91B, 50% gross margin; guidance strong.
Revenue
Record revenue of $7.91B (up 11% YoY). Semiconductor Systems contributed $5.97B (up 10% YoY), AGS $1.67B (up 17% YoY), and other $280M. Growth driven by AI infrastructure build-out in leading-edge logic, DRAM, and advanced packaging.
Profitability
Non-GAAP net income of $2.29B (up 18% YoY) and record non-GAAP diluted EPS of $2.86 (up 20% YoY). GAAP EPS was $3.51 (up 33% YoY) due to lower tax items.
Margins
Non-GAAP gross margin reached 50.0% (up 80bps YoY), driven by value-based pricing and cost innovations. Non-GAAP operating margin expanded to 32.1% (up 140bps YoY). Semi Systems gross margin approached 55%.
Balance Sheet
Cash from operations $845M; free cash flow $210M after $635M in CapEx. Distributed $765M to shareholders via $400M buybacks and $365M dividends. Dividend increased 15% YoY.
Key Risks
1) China business at 24% of revenue, with export controls a potential overhang. 2) ICAPS market digestion may persist as capacity overhang absorbs. 3) Supply chain constraints limit ability to fully meet surging demand; lead times and supplier capacity remain tight.
Outlook
Next quarter (Q3 FY2026) revenue guided to $8.95B ±$500M (up ~23% YoY) and non-GAAP EPS $3.36 ±$0.20. Management sees continued growth into 2027 with similar mix, driven by AI demand. Semi Systems expected to grow >30% in CY2026.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-05-14
Record Q2 revenue and earnings were driven by surging AI demand, with strong growth in foundry logic, DRAM, and advanced packaging. Guidance points to continued double-digit growth, margin expansion, and robust multi-year outlook, supported by new products, acquisitions, and the EPIC Center.
Q1 2026 Q1 2026 2026-02-12
Q1 FY2026 results exceeded guidance, with strong AI-driven demand in leading-edge logic, HBM DRAM, and advanced packaging. Over 20% growth is expected in semiconductor equipment for the year, with momentum into 2027, despite clean room and supply chain constraints.
Q4 2025 Q4 2025 2025-11-13
Record FY25 results with 4% revenue growth, 120 bps gross margin expansion, and strong cash returns to shareholders. AI-driven demand is set to accelerate growth in 2026, especially in leading-edge logic, DRAM, and advanced packaging, despite ongoing China trade restrictions.
Q3 2025 Q3 2025 2025-08-14
Record Q3 results with 8% revenue growth and 17% EPS increase, but Q4 guidance is lower due to China and leading-edge demand uncertainties. Long-term growth remains driven by AI, DRAM, and advanced packaging, with strong capital returns and ongoing U.S. investments.
Q2 2025 Q2 2025 2025-05-15
Q2 FY25 saw record EPS, 7% revenue growth, and margin expansion, driven by strong demand in AI, advanced logic, and memory. Guidance for Q3 points to continued growth, with robust capital returns and investments in R&D and advanced packaging.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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