AMAT Applied Materials Inc.
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Semiconductor Equipment & Materials · Santa Clara, CA · 38,900 employees · appliedmaterials.com
Applied Materials develops and manufactures capital equipment, software, and services used by the semiconductor and electronics industries globally. It generates revenue by selling advanced machinery for wafer fabrication and chip manufacturing, alongside providing maintenance, spare parts, and factory automation solutions to optimize production facilities.
Bull case
The business converts a healthy share of its revenue into free cash flow after stock-based compensation while generating returns on capital well above its financing costs. It also maintains a strong balance sheet with cash exceeding debt and benefits from equipment demand tied to semiconductor production and artificial intelligence workloads.
- Turns 16% of revenue into free cash after stock pay.
- Returns on capital run well above its cost of capital.
- It holds more cash than debt and is profitable.
- The share price trend is rising.
Bear case
Performance would suffer if trade restrictions and export controls continue to fragment the global technology supply chain. Growth could also face headwinds if the build-out of artificial intelligence infrastructure fails to sustain its momentum.
- Trades at the 95th percentile of its own valuation history.
- The price assumes about +26% a year cash-flow growth, more than the -9% a year it delivered.
- Valued above what companies with similar growth, margins and size trade at.
- One of its sector cycles (AI Infrastructure CapEx) is in saturation.
Features
- V-OVERVALUED Overvalued The price is 241% above its own-history reference value.
- V-WIDE-MOAT Wide moat Returns on capital run well above its cost of capital.
- H-FORTRESS Fortress balance sheet It holds more cash than debt and is profitable.
- F-UPSIDE Analyst upside Analysts' average target is 26% above the price.
AI impact
Supplies what AI runs on Tailwind
The company sells manufacturing equipment used to produce semiconductor chips and advanced packaging. Demand for artificial intelligence computing drives customer investment in its equipment, though rapid shifts in industry adoption make future demand difficult to forecast.
Where AI helps it
- Sells what AI workloads consume
Where AI could hurt it
- Depends on the AI build-out continuing (minor)
In the company's words
The growth of data and emerging end-market drivers such as artificial intelligence, the internet of things, robotics and smart vehicles are also creating the next wave of growth for the industry.
As a result, it is difficult to accurately forecast demand for our products related to AI.
Assessed by AI from the company's own annual report filed 12 Dec 2025 and quarterly report filed 20 Aug 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
AMAT is at the 95th percentile of its own valuation history. Depending on how far back you look, it ranges from the 92nd to the 98th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +26.4% annual cash-flow growth, between +18.4% and +32.4% under other reasonable assumptions. Over the last three years it delivered -8.9% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.