Applied Materials (AMAT) AI Stock Analysis

Applied Materials

(Six Swiss:AMAT)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Exceptional ProfitabilityAMAT’s unusually strong margins indicate substantial process technology value, operating discipline, and pricing power within semiconductor equipment. Sustaining this profitability can support continued research, capacity expansion, customer support, and shareholder returns through different phases of the industry cycle.

Negative Factors

Moderating Revenue GrowthSlower growth suggests AMAT remains exposed to semiconductor capital-spending cycles and may be entering a more mature phase after earlier expansion. Moderation can limit operating leverage and make future earnings increasingly dependent on technology transitions and customer investment timing.

Applied Materials (AMAT) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap: CHF 309.57B
Dividend Yield: 0.49%
Average Volume (3M): ―
Price to Earnings (P/E): 33.4
Beta (1Y): 3.11
Revenue Growth: -0.39%
EPS Growth: 28.16%
Country: Switzerland
Employees: 36,500
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Applied Materials Business Overview & Revenue Model

Company Description

Applied Materials, Inc. engages in provision of materials engineering solutions used to produce semiconductors. The firm also focuses on design, development, production, and servicing of the critical wafer fabrication tools used for customers to manu...

Applied Materials Earnings Call Summary

Earnings Call Date:Aug 12, 2026(Q3-2026)|% Change Since:-28.73%|Next Earnings Date:Nov 11, 2026

Earnings Call SentimentPositive

The call emphasized numerous record metrics (revenue, operating profit, EPS), strong demand driven by AI (particularly in DRAM, leading-edge logic, and advanced packaging), expanding product pipeline and strategic EPIC partnerships, and robust cash generation and capacity investments. Near-term challenges include ramp-related costs that temper immediate margin expansion, display/mix effects, supply-chain/clean-room constraints, and some guidance uncertainty (wide Q4 range and no FQ1 guide). On balance, the positives—strong multi-segment growth, margin expansion to date, product momentum, and multi-year customer visibility—outweigh the lowlights.

Positive Updates

Record Revenue and Strong Top-Line Growth

Fiscal Q3 revenue of $9.1B, up 15% sequentially and 25% year-over-year; fiscal Q4 guidance of $10.25B ± $0.5B, implying ~51% year-over-year growth.

Negative Updates

Near-Term Ramp Costs Pressure Margins

Despite strong revenue growth, company guided Q4 gross margin roughly flat at ~50.4% due in part to ramp-related headwinds (hiring/training manufacturing and support staff) and associated costs.

Company Guidance

Applied guided fiscal Q4 revenue of $10.25 billion ± $0.5B (≈+51% YoY) and non‑GAAP EPS of $4.02 ± $0.20 (≈+85% YoY); by business they expect Semiconductor Systems ≈$7.9B (+62% YoY), Applied Global Services ≈$1.84B (+22% YoY) and Other ≈$510M (primarily display), while modeling Other at roughly $400M/quarter on average through 2027. They see Q4 non‑GAAP gross margin ≈50.4%, non‑GAAP operating expenses ≈$1.58B, a non‑GAAP tax rate of ~11% (rising to ~13% in 2027 for the global minimum tax), and reminded investors Q1 fiscal 2027 is a 14‑week quarter (driving a higher-than‑average step‑up in OpEx). They also reiterated broader cadence targets and drivers (growing faster than the market; AGS >20% in calendar 2026 with sustainable mid‑teens long‑term growth; process diagnostics & control >50% in 2026; packaging >70% in 2026) and noted recent cash metrics: record operating cash flow >$3B, capex $707M, free cash flow $2.3B, $420M dividends, $440M repurchases with $12.8B buyback authorization remaining and a plan to return 80–100% of free cash flow to shareholders.

Applied Materials Risk Analysis

Applied Materials disclosed 24 risk factors in its most recent earnings report. Applied Materials reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.We may not continue to declare cash dividends or repurchase our shares.Q3, 2023

2.We are exposed to cybersecurity threats and incidents.Q3, 2023

3.We are exposed to ongoing changes specific to the semiconductor industry.Q3, 2023

Applied Materials Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

CH:AMAT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	82Outperform	$602.71B	40.34	63.91%	0.59%	28.99%	52.09%
LRCX	80Outperform	$298.69B	35.42	71.75%	0.46%	33.36%	48.32%
KLAC	73Outperform	$205.75B	39.25	87.02%	0.53%	15.80%	25.58%
ONTO	70Outperform	$9.89B	75.21	6.50%	―	8.08%	-33.87%
VECO	63Neutral	$2.38B	101.46	2.62%	―	-2.52%	-64.30%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

CH:AMAT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CH:AMAT	Applied Materials, Inc.	322.00	304.77	1768.94%
ASML	Asml Holding N.V.	1565.90	504.62	47.55%
KLAC	Kla Corporation	157.91	36.65	30.23%
LRCX	Lam Research Corp	239.11	78.61	48.98%
ONTO	Onto Innovation	201.57	69.86	53.04%
VECO	Veeco Instruments Inc	38.87	9.37	31.76%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Applied Materials AI Stock Analysis