Applied Materials uvedla, že poptávku po polovodičovém vybavení dál zvyšují investice do AI. CFO Brice Hill řekl, že prognózy zákazníků rostou napříč DRAM, leading-edge logic i advanced packaging.
These 3 GARP Stocks Show Why Growth and Value Do Not Have to ClashApplied Materials NASDAQ: AMAT sees continued strength in semiconductor equipment demand as artificial intelligence-related investment drives customer forecasts higher, Chief Financial Officer Brice Hill said at Citi’s 2026 Global TMT Conference.
Hill said the company’s rolling eight-quarter forecasts from its largest customers, particularly DRAM and leading-edge logic manufacturers, have increased throughout the year. He attributed the trend to demand for AI systems and pointed to rising capital-expenditure forecasts from cloud service providers, which he said exceed $700 billion for U.S. companies and approach $1 trillion globally.
Get Applied Materials alerts:
Applied Materials Beat Everything but Wall Street’s Expectations for Margins“Really all the indicators, all the arrows point up,” Hill said. “Our customers are investing, our customers’ customers are investing and highly profitable, and we’re investing.”
AI Systems Drive Demand Across Logic, Memory and Packaging Applied Materials is monitoring the design of AI systems, including GPU, accelerator, CPU and memory content, to assess future demand by device category. The company is also tracking more than 100 fab projects globally, with more than 10 added during each of the past two quarters, Hill said.
MarketBeat Week in Review – 06/22 - 06/26He said clean-room availability remains an important constraint on industry capacity growth over the medium term. Applied is evaluating the timing of new fabs and the capacity they will add, while using customer forecasts to plan for demand.
Hill identified advanced packaging as a major growth area alongside leading-edge logic and DRAM. Applied’s advanced-packaging business generated $1.4 billion in revenue last year, and the company expects it to grow by more than 70% this year. He said advanced packaging should continue growing in line with leading-edge logic and DRAM as AI systems require high-performance interconnects among processors, accelerators and high-bandwidth-memory stacks.
The company is also investing in panel-level packaging, which uses larger substrates to support more chips and higher-quality interconnects in computing systems. Hill said the industry remains in the development stage, with Applied generating revenue from panel-processing equipment but no volume production yet underway. The company recently acquired NEX, which provides fine-line interconnect capabilities for panel-level packaging.
ICAPS Recovery, NAND Remains Upgrade-Driven Hill said Applied expects moderate growth in its ICAPS business in 2026. ICAPS encompasses IoT, communications, automotive, power and sensor markets and had been weak for the previous several years as China added significant capacity.
Utilization rates are now improving, Hill said, and Applied expects a more normal growth year for ICAPS next year. He characterized normal growth in the underlying device markets as mid- to high-single digits, with equipment demand eventually tracking that growth as utilization normalizes.
NAND bit demand remains strong, in the “high 20% range,” according to Hill. However, he said that gains in layer counts have made NAND manufacturing more productive, allowing producers to add bit capacity with fewer wafers. As a result, NAND remains more dependent on equipment upgrades than greenfield fab construction, keeping the market smaller than the DRAM opportunity.
By contrast, Hill said DRAM capacity is entering a more significant greenfield investment cycle. He estimated that the industry had about 1.6 million DRAM wafer starts per month a year ago and is adding roughly 400,000 wafer starts per month this year. He expects additions of 300,000 to 400,000 wafer starts per month over the next several years.
Hill said an upgrade fab requires roughly 25% of the equipment investment of a greenfield facility. He estimated that process equipment for 100,000 wafer starts of greenfield capacity could total about $10 billion, illustrating the larger equipment opportunity associated with new DRAM fabs.
Capacity, Services and Process Control Applied has invested to support the ability to produce twice its current quarterly system output by 2028, Hill said, emphasizing that the target is a capacity statement rather than a revenue forecast. The company sends aggregated eight-quarter demand outlooks to suppliers by component type to help them plan hiring and capacity investments.
Hill said Applied’s services business is growing more than 20% this year, aided by high utilization across leading-edge logic, DRAM, ICAPS and NAND. Customers are purchasing more spare parts and components to maintain output, he said. The company’s longer-term services outlook is for mid-teens growth, supported by an installed base that is expanding by roughly 5% to 7% annually and higher revenue per tool from new offerings.
Those offerings increasingly include AI-based services that use tool sensors and operating data to help customers improve yield and output, Hill said.
Applied also expects its process diagnostics and control business to grow more than 50%. Hill said demand is being driven by more complex semiconductor architectures, including gate-all-around transistors, which require electron-beam inspection to identify buried defects that cannot be seen through optical inspection methods.
On profitability, Hill said Applied’s approximately 300-basis-point gross-margin improvement over the past three years has reflected the greater value of its product solutions and improved pricing processes. The company applies value-based pricing to both new and existing products, he said, while also accounting for higher costs for labor, materials and components.
About Applied Materials (NASDAQ:AMAT)Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials' offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Applied Materials Right Now?Before you consider Applied Materials, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Applied Materials wasn't on the list.
While Applied Materials currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
California State Teachers Retirement System ve 2. čtvrtletí výrazně navýšil pozici v Applied Materials a stal se jejím 16. největším akcionářem. Fond nyní drží 870 192 678 akcií.
California State Teachers Retirement System lifted its holdings in Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 70,976.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 870,192,678 shares of the manufacturing equipment provider’s stock after acquiring an additional 868,968,380 shares during the period. Applied Materials makes up 1.7% of California State Teachers Retirement System’s portfolio, making the stock its 16th biggest position. California State Teachers Retirement System owned about 109.65% of Applied Materials worth $629,149,306,000 as of its most recent SEC filing.
A number of other hedge funds have also made changes to their positions in AMAT. JFS Wealth Advisors LLC boosted its position in Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock worth $296,000 after purchasing an additional 17 shares during the period. Innovative Asset Advisors Group LLC raised its position in Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock valued at $695,000 after purchasing an additional 20 shares during the period. Stonebridge Financial Group LLC raised its position in Applied Materials by 2.1% in the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after purchasing an additional 21 shares during the period. N.E.W. Advisory Services LLC lifted its stake in shares of Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. lifted its stake in shares of Applied Materials by 13.0% during the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after purchasing an additional 21 shares in the last quarter. Hedge funds and other institutional investors own 80.56% of the company’s stock.
Analyst Ratings Changes A number of research firms have recently issued reports on AMAT. UBS Group increased their target price on Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a research note on Tuesday, September 1st. Stifel Nicolaus boosted their price target on Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. HSBC restated a “buy” rating and issued a $683.00 price target on shares of Applied Materials in a report on Monday, July 27th. Citigroup reiterated a “buy” rating on shares of Applied Materials in a research note on Monday, August 3rd. Finally, JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $515.00 to $660.00 and gave the stock an “overweight” rating in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $658.45.
Get Our Latest Report on Applied Materials Applied Materials News Roundup Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: AI-driven equipment demand remains the main catalyst. Growth in advanced packaging, DRAM and high-bandwidth memory (HBM), along with accelerating global fab investment, is strengthening the outlook for Applied Materials’ equipment orders. AMAT Rides on AI-Led WFE Demand: Can it Sustain the Momentum? Positive Sentiment: Raised forecasts have driven a major valuation re-rating. Although trailing-twelve-month revenue growth was only 7.8%, management reportedly increased its forecast twice between February and August as semiconductor demand expectations improved. That forward-growth story helps explain the stock’s roughly 180% one-year return. Why Did Applied Materials Stock Nearly Triple On Single-Digit Trailing Revenue Growth? Positive Sentiment: Analyst expectations are improving. UBS projected strong potential appreciation for AMAT, while another analyst raised the fiscal 2027 EPS estimate, signaling continued confidence in earnings growth and semiconductor capital spending. UBS Group Forecasts Strong Price Appreciation for Applied Materials FY2027 EPS Estimate for Applied Materials Boosted by Analyst Neutral Sentiment: Valuation remains a key debate. Despite a recent pullback, AMAT has gained about 237% over five years, leaving investors questioning how much AI and semiconductor-cycle optimism is already reflected in the shares. Can Applied Materials Still Look Cheap After a 237% Run? Negative Sentiment: Industry-cycle risks have not disappeared. Optimism about a permanently stronger semiconductor cycle is tempered by potential memory-capacity imbalances, which could pressure chipmakers’ capital spending if supply expands faster than demand. SEMIs CEO Has Watched Four Decades of Chip Cycles Applied Materials Stock Performance Shares of AMAT opened at $454.71 on Monday. The company has a market capitalization of $360.86 billion, a P/E ratio of 39.20, a P/E/G ratio of 1.27 and a beta of 1.60. Applied Materials, Inc. has a one year low of $158.82 and a one year high of $739.67. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The stock has a 50-day moving average price of $533.24 and a 200 day moving average price of $461.33.
Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same period in the previous year, the business earned $2.48 EPS. Applied Materials’s revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts forecast that Applied Materials, Inc. will post 12.76 EPS for the current fiscal year.
Applied Materials Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, August 20th. Applied Materials’s payout ratio is 18.28%.
Insider Transactions at Applied Materials In other Applied Materials news, insider Prabu G. Raja sold 10,000 shares of the firm’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the completion of the transaction, the insider directly owned 346,642 shares of the company’s stock, valued at $219,608,106.26. This trade represents a 2.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas J. Iannotti sold 9,250 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the completion of the sale, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 231,692 shares of company stock valued at $146,114,059 over the last ninety days. 0.30% of the stock is currently owned by corporate insiders.
(Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Recommended Stories Five stocks we like better than Applied Materials AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Applied Materials čeká v roce 2026 růst tržeb z advanced packaging o více než 70 % a tržeb z DRAM, včetně HBM packaging, o 52 % meziročně ve fiskálním 3. čtvrtletí. Firma zároveň plánuje do roku 2028 zdvojnásobit čtvrtletní výrobu systémů.
Key Takeaways AMAT is positioned for AI-led WFE growth as advanced logic, DRAM and packaging drive 2026-27 demand.AMAT expects advanced packaging revenues to grow over 70% in 2026, with DRAM revenues up 52%.AMAT plans to double quarterly system output by 2028 as leading-edge fabs operate at full capacity. Applied Materials (AMAT - Free Report) is well positioned to capitalize on AI-driven semiconductor demand as leading-edge foundry-logic, DRAM and advanced packaging are expected to account for around 80% of wafer fab equipment (WFE) growth in 2026 and 2027. AMAT’s leadership in these areas, particularly HBM and 3D chiplet stacking, strengthens its exposure to rising AI computing requirements and fab capacity investments globally.
AMAT introduced six new chipmaking systems in the latest quarter, spanning DRAM and advanced packaging. Enhanced Centura Prime Epi targets faster, more power-efficient DRAM and HBM, while Producer Avila 2 supports higher-layer-count HBM. AMAT also introduced Opta Quad CMP, Nokota VMax 2 ECD and new eBeam systems addressing demanding packaging, plating, metrology and defect-analysis requirements for advanced architectures and yield optimization across fabs.
As the opportunity broadens beyond equipment sales, chipmakers race to increase output and yield, benefiting wafer fabrication equipment manufacturers like AMAT. Applied Materials expects advanced packaging revenues to grow more than 70% in 2026, while DRAM revenues, including HBM packaging, rose 52% year over year in the fiscal third quarter. Process diagnostics and control revenues are also expected to increase more than 50% this year overall through 2026.
Strong customer visibility further supports AMAT’s growth outlook. Most leading-edge logic and DRAM fabs are operating at full capacity, customers announced more than 10 new fab projects during the third quarter of fiscal 2026, and some forecasts extend to 2030. AMAT plans to double quarterly system output by 2028. Applied Materials’ fiscal fourth-quarter revenue guidance of $10.25 billion also signals accelerating momentum into 2027.
How Competitors Fare Against AMATAMAT’s broad portfolio positions the company to capture a larger share of customer spending as semiconductor manufacturing becomes increasingly materials-intensive while also keeping its competitors like KLA Corporation (KLAC - Free Report) and Lam Research (LRCX - Free Report) at bay.
KLA Corporation remains a dominant player in process control, wafer inspection and yield management solutions, while Lam Research competes with Applied Materials across deposition and etch technologies, including advanced atomic layer deposition systems used in leading-edge semiconductor manufacturing.
The breadth of Applied Materials' portfolio also reduces its dependence on any single semiconductor technology cycle and supports stronger pricing power, helping it adapt amid the continuous competitive pressure of KLA Corporation and Lam Research.
AMAT’s Price Performance, Valuation and EstimatesApplied Materials shares have climbed 70.6% year to date, outperforming the Zacks Computer and Technology sector and the Zacks Electronics - Semiconductors industry’s appreciation of 16% and 24.2%, respectively.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
The rise in stock price has made AMAT stock trade at a premium. Currently, AMAT has a price-to-sales (P/S) multiple of 7.98X, which is much above the industry’s P/S of 4.88X. AMAT’s value score of D also suggests its overvaluation.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Applied Materials expects non-GAAP earnings of $4.02 per share (+/- 20 cents), indicating 85% year-over-year growth at the midpoint. The Zacks Consensus Estimate suggests year-over-year growth of 86.6%. The estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Applied Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Společnost Applied Materials ve 3. čtvrtletí zvýšila tržby na 9,12 miliardy USD a zisk na akcii na 3,50 USD, nad odhady. Firma zároveň čeká ve 4. čtvrtletí tržby 10,25 miliardy USD.
Benjamin Edwards Inc. lessened its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 3.5% in the second quarter, according to its most recent filing with the SEC. The firm owned 39,111 shares of the manufacturing equipment provider’s stock after selling 1,432 shares during the quarter. Benjamin Edwards Inc.’s holdings in Applied Materials were worth $28,282,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds also recently modified their holdings of the business. JFS Wealth Advisors LLC increased its stake in Applied Materials by 4.3% during the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after buying an additional 17 shares during the period. Innovative Asset Advisors Group LLC raised its position in shares of Applied Materials by 2.1% during the 2nd quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after buying an additional 20 shares in the last quarter. Stonebridge Financial Group LLC raised its holdings in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock worth $725,000 after purchasing an additional 21 shares in the last quarter. N.E.W. Advisory Services LLC lifted its position in Applied Materials by 5.9% in the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares during the period. Finally, IMG Wealth Management Inc. lifted its position in Applied Materials by 13.0% in the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after purchasing an additional 21 shares during the period. Institutional investors own 80.56% of the company’s stock.
Applied Materials News Roundup Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Semiconductor and AI demand remains strong: Recent coverage highlights Applied Materials’ $9.12 billion third-quarter revenue, up 25% year over year, and non-GAAP EPS of $3.50, up 41%. Management cited record demand visibility from AI infrastructure, more than 10 new fab projects during the quarter and fourth-quarter revenue guidance of $10.25 billion. The company is also continuing share repurchases and investing $5 billion in its EPIC Center to accelerate semiconductor innovation. The AI Buildout Is Turning Applied Materials Into A Profit Machine Positive Sentiment: New board member adds semiconductor expertise: AMAT appointed Akash Palkhiwala, Qualcomm’s CFO and COO, to its board and Audit Committee. His finance, operations and industry experience could strengthen oversight as Applied Materials pursues growth tied to advanced logic, memory and AI chip production. Applied Materials Appoints Akash Palkhiwala to Board of Directors Neutral Sentiment: Options market signals elevated uncertainty: A new analysis says options pricing for roughly one year ahead implies a particularly wide potential trading range, extending materially below and above the current level. That suggests investors should expect significant volatility rather than providing a clear directional signal. How Far Applied Materials Stock Can Move In A Year Negative Sentiment: CFO share sale may weigh modestly on sentiment: CFO Brice Hill sold 7,500 AMAT shares for approximately $3.6 million, reducing his direct holdings by 5.51%. The sale does not alter the company’s operating outlook, but insider selling can create a limited short-term sentiment overhang. SEC Insider Transaction Filing Applied Materials Stock Performance Shares of AMAT opened at $461.67 on Monday. The company has a 50-day moving average of $550.80 and a two-hundred day moving average of $457.65. The stock has a market cap of $366.38 billion, a price-to-earnings ratio of 39.80, a PEG ratio of 0.99 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. Applied Materials, Inc. has a one year low of $154.46 and a one year high of $739.67. Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The business had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The firm’s revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts expect that Applied Materials, Inc. will post 12.76 earnings per share for the current year.
Applied Materials Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s payout ratio is 18.28%.
Analyst Ratings Changes AMAT has been the topic of several research analyst reports. The Goldman Sachs Group reiterated a “buy” rating and set a $645.00 price target on shares of Applied Materials in a research report on Monday, August 3rd. Raymond James Financial set a $650.00 price objective on Applied Materials in a report on Wednesday, June 10th. Sanford C. Bernstein raised their target price on Applied Materials from $675.00 to $700.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Finally, Mizuho dropped their price target on shares of Applied Materials from $650.00 to $590.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 25th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $657.76.
Get Our Latest Research Report on AMAT
Insider Buying and Selling In other news, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This trade represents a 18.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total value of $6,335,300.00. Following the transaction, the insider owned 346,642 shares in the company, valued at $219,608,106.26. This represents a 2.80% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 284,192 shares of company stock valued at $172,625,209. 0.30% of the stock is currently owned by company insiders.
Applied Materials Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Further Reading Five stocks we like better than Applied Materials Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Callan Family Office LLC raised its holdings in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 8.4% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 30,770 shares of the manufacturing equipment provider’s stock after buying an additional 2,377 shares during the period. Applied Materials comprises approximately 0.4% of Callan Family Office LLC’s investment portfolio, making the stock its 29th biggest position. Callan Family Office LLC’s holdings in Applied Materials were worth $22,247,000 as of its most recent SEC filing.
Other hedge funds have also recently added to or reduced their stakes in the company. BlackRock Inc. boosted its holdings in shares of Applied Materials by 1.6% in the second quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider’s stock worth $57,993,650,000 after buying an additional 1,237,685 shares during the period. Capital Research Global Investors raised its holdings in shares of Applied Materials by 119.8% during the fourth quarter. Capital Research Global Investors now owns 32,707,049 shares of the manufacturing equipment provider’s stock valued at $8,405,458,000 after acquiring an additional 17,829,377 shares during the period. Morgan Stanley raised its holdings in shares of Applied Materials by 3.4% during the fourth quarter. Morgan Stanley now owns 11,470,835 shares of the manufacturing equipment provider’s stock valued at $2,947,891,000 after acquiring an additional 373,012 shares during the period. Norges Bank purchased a new stake in shares of Applied Materials in the 4th quarter valued at approximately $2,858,543,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Applied Materials by 17.1% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock valued at $2,746,769,000 after acquiring an additional 1,558,749 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company’s stock.
Analyst Ratings Changes AMAT has been the topic of several recent analyst reports. JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $515.00 to $660.00 and gave the company an “overweight” rating in a research note on Friday, August 14th. Raymond James Financial set a $650.00 target price on Applied Materials in a research report on Wednesday, June 10th. Seaport Research Partners reiterated a “buy” rating and set a $575.00 price target on shares of Applied Materials in a report on Friday, August 14th. Bank of America dropped their price target on Applied Materials from $720.00 to $650.00 and set a “buy” rating on the stock in a research report on Friday, August 14th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a research note on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, Applied Materials has a consensus rating of “Moderate Buy” and a consensus price target of $659.83.
Read Our Latest Report on AMAT Applied Materials Price Performance Shares of NASDAQ:AMAT opened at $484.19 on Tuesday. The stock has a market capitalization of $384.25 billion, a P/E ratio of 41.74, a P/E/G ratio of 1.06 and a beta of 1.61. The business has a 50-day moving average of $560.64 and a two-hundred day moving average of $453.08. Applied Materials, Inc. has a fifty-two week low of $154.46 and a fifty-two week high of $739.67. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.
Applied Materials (NASDAQ:AMAT – Get Free Report) last announced its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping the consensus estimate of $3.40 by $0.10. The firm had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business’s quarterly revenue was up 24.8% on a year-over-year basis. During the same quarter last year, the firm posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, equities research analysts predict that Applied Materials, Inc. will post 12.73 EPS for the current fiscal year.
Applied Materials Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.
Insider Activity at Applied Materials In other Applied Materials news, CEO Gary E. Dickerson sold 20,000 shares of Applied Materials stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total transaction of $14,704,400.00. Following the sale, the chief executive officer owned 1,599,843 shares in the company, valued at $1,176,236,570.46. The trade was a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the sale, the senior vice president owned 146,916 shares in the company, valued at approximately $87,184,361.88. This trade represents a 14.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 276,692 shares of company stock worth $169,030,834 in the last three months. Company insiders own 0.30% of the company’s stock.
(Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Further Reading Five stocks we like better than Applied Materials Visa Just Put Hims & Hers in the Penalty Box—Here’s Why It Matters Treasury Yields Are Surging Again: 3 Stocks That Could Feel the Pain Snowflake Could Be Headed for New Highs Despite Insider Selling MongoDB Is Surging—And the Next Catalyst Is Almost Here Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Arete Wealth Advisors LLC purchased a new stake in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 14,831 shares of the manufacturing equipment provider’s stock, valued at approximately $10,723,000.
A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Harborfront Financial Group LLC purchased a new stake in Applied Materials during the 2nd quarter valued at about $27,000. BOK Financial Private Wealth Inc. purchased a new position in Applied Materials in the 2nd quarter worth approximately $41,000. Financial Freedom LLC purchased a new position in Applied Materials in the 1st quarter worth approximately $28,000. Elevation Wealth Partners LLC lifted its position in Applied Materials by 34.8% in the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock valued at $67,000 after purchasing an additional 24 shares during the last quarter. Finally, Cornerstone Financial Management LLC bought a new stake in Applied Materials in the fourth quarter valued at approximately $25,000. 80.56% of the stock is owned by institutional investors.
Insiders Place Their Bets In other Applied Materials news, SVP Timothy M. Deane sold 8,621 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the transaction, the senior vice president owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the transaction, the insider owned 346,642 shares of the company’s stock, valued at $219,608,106.26. The trade was a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 276,692 shares of company stock valued at $169,030,834. Insiders own 0.30% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts have recently issued reports on the stock. Raymond James Financial set a $650.00 target price on shares of Applied Materials in a report on Wednesday, June 10th. Royal Bank Of Canada upped their price target on shares of Applied Materials from $520.00 to $600.00 and gave the company an “outperform” rating in a report on Friday, August 14th. KeyCorp increased their price target on shares of Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a research report on Monday, June 29th. Wells Fargo & Company raised their price target on shares of Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a report on Friday, June 26th. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $645.00 price objective on shares of Applied Materials in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $657.76. Get Our Latest Stock Report on AMAT
Key Headlines Impacting Applied Materials Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Goldman Sachs reportedly named Applied Materials a “top pick,” citing the company’s exposure to the continued buildout of AI infrastructure and chip-manufacturing capacity. Applied Materials Stock Is Named a Top Pick at Goldman Sachs Positive Sentiment: Analysts see significant upside after the stock’s decline from its high, with AI-driven semiconductor investment and record quarterly revenue supporting bullish price targets. One report cited an average target near $641, implying roughly 32% potential appreciation from recent levels. Wall Street Sees Rally Despite Decline From Peak Positive Sentiment: Applied Materials is viewed as a key beneficiary of AI infrastructure spending because its equipment and engineering solutions are essential to advanced semiconductor manufacturing. Why Investors Should Buy the Dip in AMAT Neutral Sentiment: Mizuho lowered its Applied Materials price target from $650 to $590 but retained an “outperform” rating. The reduced target reflects more cautious expectations, while the rating still indicates confidence in the company’s longer-term prospects. Benzinga Neutral Sentiment: The reported August short-interest figures show zero shares and a mathematically invalid change, making the data unreliable and unlikely to provide a meaningful trading signal. Negative Sentiment: Semiconductor stocks broadly declined as investors reduced risk ahead of NVIDIA’s results, weighing on Applied Materials alongside other chipmakers. Semiconductor Stocks Slide Ahead of NVIDIA Earnings Applied Materials Stock Down 0.9% Shares of NASDAQ:AMAT opened at $480.04 on Wednesday. The firm has a market capitalization of $380.96 billion, a P/E ratio of 41.38, a P/E/G ratio of 1.04 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The stock has a 50 day moving average price of $558.87 and a 200-day moving average price of $454.37. Applied Materials, Inc. has a 52-week low of $154.46 and a 52-week high of $739.67.
Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm’s revenue was up 24.8% on a year-over-year basis. During the same period in the previous year, the company posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, equities research analysts anticipate that Applied Materials, Inc. will post 12.73 EPS for the current fiscal year.
Applied Materials Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s payout ratio is presently 18.28%.
Applied Materials Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Featured Articles Five stocks we like better than Applied Materials Pathward’s Credit Scare Tests Its Comeback Story Wiring the AI Boom: Rumble’s $13.7B Pivot StoneX: Too Far Too Fast? DICK’s Sporting Goods Faces Pain Now for a Bigger Prize Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Applied Materials uvedl, že tržby AGS vzrostly ve 3. fiskálním čtvrtletí roku 2026 o 22 % na rekordních 1,78 miliardy USD. Firma očekává, že AGS v roce 2026 poroste o více než 20 %.
Key Takeaways Applied Materials' AGS revenues rose 22% to a record $1.78 billion, with margins expanding year over year.AGS is expected to grow more than 20% in 2026 and at a sustainable mid-teens rate long term.Rising fab utilization and yield demands are boosting demand for AMAT's advanced services and parts. Applied Materials’ (AMAT - Free Report) Applied Global Services (“AGS”) business is becoming an increasingly important source of recurring and higher-margin revenues. In the third quarter of fiscal 2026, AGS generated a record $1.78 billion in revenues, up 22% year over year, driven by growth in subscription services and strong transactional parts demand. AGS also delivered a 35.6% gross margin and 30.1% operating margin, up 180 basis points and 280 basis points, respectively, from a year earlier.
The strategic value of AGS extends beyond its revenue contribution. As semiconductor manufacturers operate fabs at high utilization and work to increase yield, output and ramp speed, AMAT is seeing greater demand for advanced service solutions. Management said most leading-edge logic and DRAM fabs are running at full capacity, while utilization is rising across other markets as well. This creates opportunities for AGS to help customers optimize the performance of their existing high-volume manufacturing operations.
Management now expects AGS revenues to grow more than 20% in 2026 and sees a sustainable long-term annual growth rate in the mid-teens. That outlook reflects the increasing value of advanced services as customers seek to improve fab yields and output while ramping new capacity. AMAT is therefore expanding AGS alongside the broader semiconductor capacity buildout rather than relying solely on new equipment sales.
As a result, AGS is becoming an important part of Applied Materials’ long-term earnings model. Its combination of subscription services, parts demand, advanced AI-enabled services and expanding margins provides AMAT with growing revenues by supporting customers throughout their manufacturing operations.
With AGS expected to grow more than 20% in 2026 and at a sustainable mid-teens rate over the long term, the segment should remain an important contributor to AMAT’s growth and profitability as AI drives higher semiconductor capacity, utilization and yield requirements.
How Competitors Fare Against AMATSince AMAT serves its own installed base through the AGS business, so there are no competitors in this segment. But in the broader product category, AMAT competes with ASML Holding (ASML - Free Report) and Lam Research (LRCX - Free Report) .
ASML is experiencing strong demand from DRAM and logic customers, which are ramping leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps shorten cycle time and lower costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and Lam Research, making it a stock worth holding.
Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Additionally, Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 86.8% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 24.9%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 8.81X, higher than the industry’s average of 4.95X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 35% and 42.8%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
Applied Materials currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Čína nařídila výrobcům čipů používat při nové kapacitě alespoň 50 % domácího vybavení, což zvyšuje tlak na Applied Materials. Firma přitom ve fiskálním 1. čtvrtletí 2026 získala z Číny 29,9 % tržeb.
China just unveiled domestic immersion DUV lithography systems, and semiconductor equipment stocks sold off hard, but the companies actually in the crosshairs may not be the ones investors are panicking about.
China has directed semiconductor manufacturers to use at least 50% domestically produced equipment when adding new capacity, according to a Reuters report citing people familiar with the policy. Fab projects that fail to meet that threshold are generally denied regulatory approval, although flexibility remains where no suitable Chinese tool is available. The requirement favors domestic equipment suppliers such as Naura Technology and AMEC over foreign companies and provides the context needed to understand China’s newly announced immersion deep-ultraviolet lithography systems.
Reports that Shanghai Aishengna Electronic Technology Group has begun producing immersion DUV systems sent shares of ASML Holding (ASML | ASML Price Prediction) down sharply and contributed to weakness across semiconductor equipment stocks, including Applied Materials (AMAT). The initial reaction treated the development as evidence that China could begin replacing Western equipment across its semiconductor industry. That conclusion is directionally understandable, but the immediate effect on Applied Materials is being overstated.
Applied Materials does not manufacture lithography systems. A Chinese immersion DUV machine competes directly with ASML, not with Applied Materials’ deposition, etch, thermal-processing, metrology, inspection and advanced-packaging systems. The greater risk is indirect and longer term: if domestic lithography becomes commercially usable, it fills one of the largest remaining holes in China’s equipment supply chain and allows Chinese fabs to build production lines containing a higher percentage of domestic deposition, etch, cleaning and chemical mechanical planarization equipment.
For investors, the distinction matters. Five unproven Chinese DUV systems will not materially change Applied Materials’ earnings in 2026. But the combination of China’s 50% domestic-equipment requirement, rapidly growing local equipment companies, and expanding fabs at CXMT, SMIC and Hua Hong could reduce Applied Materials’ addressable market in China over several years.
Applied Materials Remains Heavily Exposed to China Applied Materials generated $2.095 billion from China during its fiscal first quarter of 2026, representing 29.9% of total company revenue. China remained the company’s largest individual geographic market even though revenue declined 6.6% from $2.243 billion one year earlier.
China exposure held close to that level in fiscal Q2: reported China revenue was $2.087 billion, or 26.4% of the quarter’s $7.910 billion total. Across the first half of fiscal 2026, China generated $4.182 billion of Applied Materials’ $14.922 billion in revenue — 28.0% of the total (Table 1).
These figures do not mean that all $2.087 billion of quarterly China revenue is threatened by CXMT or Chinese DUV. U.S. controls already restrict exports of specified semiconductor manufacturing equipment used to produce advanced chips in China. The thresholds include logic at 16/14nm or below, DRAM at 18nm calculated half-pitch or below, and advanced NAND.
Applied Materials’ remaining China revenue therefore includes portions of the market it can still legally serve: qualifying mature-node fabs, specialty devices, packaging, display-related manufacturing, services and unrestricted customers. Its current China business should not be confused with the advanced memory and logic opportunities from which the company has already been partially excluded — exclusions that carry a real, quantified cost. Applied Materials has guided to roughly a $600 million revenue headwind in fiscal 2026 from expanded U.S. export restrictions, including $110 million in the fiscal fourth quarter alone.
China’s domestic-equipment policy layers a second risk on top of that sanctions-driven one. Chinese fabs are being encouraged to buy local equipment even in markets where foreign tools remain legally available, putting Applied Materials’ permitted China business under competitive pressure while it is simultaneously locked out of the country’s most advanced capacity additions.
Chinese Equipment Suppliers Are Already Gaining Share China’s domestic equipment industry is no longer a collection of small development programs. Naura supplies deposition, etch, furnaces, rapid thermal processing and other systems. AMEC competes in etch and deposition. Piotech participates in deposition, while Hwatsing Technology supplies CMP equipment. ACM Research (ACMR), through its large Chinese operating presence, supplies wet cleaning, plating, furnace and packaging systems, although its U.S. headquarters and dual corporate structure distinguish it from purely domestic companies such as Naura and AMEC.
Combined sales from six major Chinese semiconductor equipment suppliers increased from $748 million in 2020 to $7.608 billion in 2025 — more than a tenfold increase in five years. Their adjusted worldwide WFE share rose from 1.2% to 6.5% over the same period. These companies collectively grew sales 29.9% in 2025, led by Piotech, AMEC and Hwatsing (Table 2).
Chinese equipment companies do not need to replace Applied Materials worldwide to affect its financial performance — they only need to gain share inside China, where Applied Materials still produces more than a quarter of its revenue. The 50% domestic-equipment requirement gives them a protected qualification environment, while U.S. export controls limit the foreign competition they face at advanced Chinese fabs.
Domestic DUV can accelerate this process even if the scanners initially perform far below ASML’s systems. Lithography has remained one of the largest weaknesses in China’s equipment ecosystem. Progress there makes it easier to assemble a complete Chinese production line rather than pairing Chinese deposition and etch systems with imported ASML scanners.
Five Chinese DUV Systems Do Not Constitute Mass Production Shanghai Aishengna is reportedly targeting approximately five immersion DUV systems in 2026 and 20 in 2027. Initial deliveries are expected to go to SMIC, Hua Hong and CXMT. By comparison, ASML shipped 131 immersion DUV systems in 2025.
The Chinese systems reportedly use mostly domestic components, though selected critical parts still come from Japan. They also trail ASML’s scanners in performance, reliability and build quality and could require months of testing before entering production. China’s domestic EUV initiative remains at the prototype stage and is likely years from supporting commercial chip output.
Aishengna’s 2027 production target would equal only about 15.3% of ASML’s 2025 immersion DUV shipments (Table 3). The near-term numbers are small, but the planned customers are strategically important: China’s leading foundry, a major mature-node producer and its principal DRAM manufacturer.
“Mass production” therefore overstates the immediate commercial threat. Five systems are closer to a qualification fleet than a volume-production program. The investment significance is not that Aishengna is about to displace ASML across China, but that the scanners will be installed at the fabs most important to China’s semiconductor self-sufficiency strategy — where they can be tested alongside Chinese deposition, etch, cleaning, CMP and process-control equipment. If the resulting production line hits acceptable throughput and yield, later capacity expansions can carry a progressively higher share of domestic tools.
CXMT Demonstrates the Longer-Term Risk CXMT is the clearest example of how this equipment ecosystem could develop. The company is now the world’s fourth-largest DRAM producer, behind SK hynix, Samsung Electronics and Micron Technology (MU). Its G4 16Gb DDR5 process has an approximately 16nm feature size, placing it within the U.S. advanced-DRAM threshold covering production at 18nm calculated half-pitch or below.
Consequently, Applied Materials cannot freely compete for much of the equipment required for CXMT’s newest DRAM production. CXMT is not simply choosing Naura over Applied Materials in an unrestricted competitive bid. U.S. rules have already limited Applied Materials’ ability to supply and service controlled tools at advanced Chinese memory facilities.
The impact is no longer only theoretical. Industry trackers estimate that domestic equipment now accounts for roughly 40% to 50% of the tools installed on CXMT’s production lines, a share expected to rise as new expansion phases begin. In core processes such as etch, domestic penetration reportedly exceeds 60% at some facilities, although I have not independently been able to verify these figures. Naura, AMEC and other Chinese suppliers, not Applied Materials, are already capturing much of the equipment spending tied to China’s fastest-growing DRAM producer.
This means CXMT’s expansion represents foregone growth as much as direct displacement of Applied Materials’ currently reported China revenue, and the foregone share is already substantial. CXMT’s capacity reached approximately 290,000 wafer starts per month in Q1 2026 and could approach 350,000 by year-end. New fabs under construction in Shanghai and Hefei could eventually lift CXMT’s capacity above 600,000 wafers per month and allow it to overtake Micron in physical wafer capacity by 2030.
CXMT will still trail Micron technologically. Its older process produces fewer bits per wafer, while Micron receives additional revenue from leading-edge DRAM and HBM. However, CXMT’s lower manufacturing efficiency may require greater wafer capacity and equipment intensity to produce a given number of bits. That would normally create an opportunity for deposition and etch suppliers. China’s domestic-equipment policy, and CXMT’s own sourcing pattern, instead directs much of that opportunity toward local companies.
China’s DUV program reinforces this outcome. CXMT has already relied on imported ASML DUV systems and multi-patterning to produce advanced DRAM without EUV. A domestic DUV platform would not immediately give CXMT the same technology as Micron, Samsung or SK hynix, but it could allow the company to add future lithography capacity without depending entirely on additional ASML shipments or foreign servicing.
Applied Materials’ AI Opportunity Remains Intact The China risk should not obscure Applied Materials’ growth opportunities elsewhere. AI is increasing demand for advanced logic, gate-all-around transistors, HBM, high-performance interconnects, 3D architectures and advanced packaging. These transitions increase materials-engineering intensity and support demand for Applied Materials’ deposition, etch and packaging systems.
The company’s June 2026 product introductions for 2nm and advanced 3D architectures — including its Viva nanosheet engineering platform and new ALD and etch systems — target precisely these AI-related manufacturing transitions. Spending by TSMC, Samsung, Intel, Micron and SK hynix can offset some of the equipment opportunities Applied Materials cannot pursue in China.
China’s five initial DUV systems therefore do not invalidate the Applied Materials investment story; they are too few, too immature and too far behind ASML to produce an immediate earnings shock. The larger issue is whether domestic DUV lets China qualify a complete equipment ecosystem that eventually reaches beyond restricted advanced fabs and begins displacing Applied Materials in the mature-node and specialty markets where it can still sell.
Investor Takeaway The market reaction to China’s domestic DUV announcement exaggerated the near-term threat to Applied Materials. Aishengna does not compete directly with Applied Materials, and five planned systems will not materially reduce its 2026 revenue. Applied Materials’ most important AI-related growth opportunities remain tied to advanced manufacturing outside China, where its deposition, etch, gate-all-around and packaging technologies retain strong competitive positions.
The longer-term China risk is nevertheless real, and CXMT shows it is no longer only longer-term. Applied Materials generated 29.9% of fiscal Q1 2026 revenue from China, while six major Chinese equipment companies increased combined sales more than tenfold between 2020 and 2025. China’s 50% domestic-equipment requirement gives those suppliers a structural advantage, and CXMT—one of the first planned recipients of China’s domestic DUV systems—already sources an estimated 40%–50% of its production-line equipment domestically.
For investors, the correct interpretation is not that Chinese DUV immediately threatens Applied Materials’ earnings. It is that China has turned its fastest-growing advanced fab into a protected qualification market for domestic processing equipment, and CXMT’s rising localization rate is the clearest evidence of how far that substitution has already progressed. Applied Materials can continue growing through AI-driven investment elsewhere, but a progressively self-sufficient Chinese equipment industry will limit how much of China’s semiconductor expansion the company can capture.
Contact [email protected] for any questions or corrections.
Společnost Applied Materials uvedla, že AI letos pohání asi 80 % růstu v oblasti zařízení pro výrobu waferů, hlavně v oblasti advanced logic, pamětí a pokročilého pouzdření. Dickerson zároveň řekl, že byznys s pokročilým pouzdřením letos roste o více než 50 %.
Applied Materials Beat Everything but Wall Street’s Expectations for MarginsApplied Materials NASDAQ: AMAT President and CEO Gary Dickerson said artificial intelligence is creating what he views as the semiconductor industry’s most consequential growth inflection, driving demand for new computing architectures, memory technologies and advanced packaging.
Speaking at The Six Five Summit: AI Unleashed 2026, Dickerson said AI’s impact will extend beyond software applications and data centers, reshaping how semiconductor equipment makers develop products, serve customers and commercialize new chip technologies.
Get Applied Materials alerts:
MarketBeat Week in Review – 06/22 - 06/26“AI is the biggest inflection of our lifetimes,” Dickerson said. “I think it’s going to transform every industry. It’s going to touch every individual.”
AI-Driven Demand Across Chip Manufacturing Dickerson said Applied Materials is using AI internally in product development, operations, supply chain management and services. He emphasized that the company’s goal is not primarily to reduce headcount, but to accelerate products and services to market and support revenue growth.
From Quantum to Clothing: Insider Trades Hit 3 Big NamesHe said the company is introducing products this year that it would not have been able to bring to market without AI. Applied’s service business, meanwhile, is growing at a 20% compound annual growth rate, according to Dickerson.
On semiconductor demand, Dickerson said the current AI cycle is more pervasive than prior technology transitions, including the shift from mainframes to personal computers and the mobile-computing boom. He said demand is being supported not only by people using computing resources but also by AI agents consuming compute capacity.
“The compute demand is going to keep going up,” Dickerson said, pointing to data-center workloads as well as emerging edge-AI applications. He said the economics of AI adoption are compelling enough to support continued demand across industries.
In wafer-fab equipment, about 80% of growth this year is tied to AI-driven areas, including advanced logic, memory such as high-bandwidth memory, and advanced packaging, he said. Dickerson also said Applied Materials holds the No. 1 position in each of those segments.
Memory, Packaging and Materials Innovation Dickerson said the industry’s focus is increasingly on improving “tokens per second per watt” and lowering the cost per token. Achieving those goals will require innovation across the technology stack rather than merely producing more chips, he said.
He highlighted several areas of development:
Advanced logic technologies designed to process more data. Faster memory and high-bandwidth memory technologies intended to move data on and off chips more quickly. Stacked memory approaches aimed at placing chips closer together to improve speed and reduce power consumption. Advanced packaging technologies that connect multiple computing components and influence performance, power and cost. Applied Materials’ advanced-packaging business is growing by more than 50% this year, Dickerson said. He added that an advanced package next year could contain more than 300 chips, more than 500 billion transistors and more than 2,000 miles of wiring.
Material science will be central to enabling these new architectures, according to Dickerson. He said the company is developing materials as thin as one or two nanometers and controlling them within an angstrom, or one-tenth of a nanometer.
EPIC Center Investment Targets Faster Commercialization Dickerson discussed Applied Materials’ $5 billion investment in its EPIC Center in Silicon Valley, describing it as an effort to bring together the company, customers, customers’ customers and supply-chain partners to speed the development and commercialization of semiconductor technologies.
Rather than pursuing innovation through a sequential process from materials to systems, the facility is intended to support earlier and closer collaboration among technology partners, he said. Dickerson called the approach “high-velocity co-innovation.”
The objective is not simply to introduce new architectures first, he said, but to ramp them at high yields, with reliability and competitive costs. “If you don’t have those three things, cost doesn’t matter,” Dickerson said, referring to performance, yield and reliability.
Dickerson said the center is intended to help partners bring architectures to market faster, secure design wins and give Applied Materials greater visibility into technology needs across multiple future nodes. That visibility, he said, can help the company determine where to direct research-and-development investment.
“We have to innovate the way we innovate, or we will not accomplish what we could accomplish together,” Dickerson said. He added that the company is seeing strong interest from ecosystem partners in collaborating on AI-focused computing technologies.
About Applied Materials (NASDAQ:AMAT)Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials' offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Applied Materials Right Now?Before you consider Applied Materials, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Applied Materials wasn't on the list.
While Applied Materials currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. "Physical AI" is coming. Learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Applied Materials podle JPMorgan čeká asi 40% meziroční růst tržeb v divizi Semiconductor Systems díky silné poptávce po AI čipech. Firma zároveň vidí, že AI segmenty tvoří zhruba 80 % letošního růstu trhu s výrobními zařízeními pro čipy.
Applied Materials Inc. (NASDAQ:AMAT) could see semiconductor systems revenue grow about 40% this year as AI-driven chip investment continues to strengthen, according to JPMorgan.
Analyst Harlan Sur maintained an Overweight rating on Applied Materials with a $660 price forecast. The comments followed a Thursday meeting with Mike Sullivan, the company’s corporate vice president and head of investor relations.
Applied Materials Sees Stronger Chip Equipment DemandSullivan said roughly 40% year-over-year growth in Applied Materials’ Semiconductor Systems business appears achievable this year. Demand has strengthened over the past 13 weeks, although limited cleanroom space at customers could constrain further upside.
The company also plans to expand manufacturing capacity to support as much as twice its recent systems output by 2028. However, Sullivan stressed that the plan should not be viewed as a forecast for semiconductor equipment spending.
Instead, the company wants enough capacity to meet demand if the industry expands faster than expected. The company has more than eight quarters of visibility through its backlog and customer forecasts.
AI Drives Most Of Industry GrowthApplied Materials has become more confident about the 2027 wafer fabrication equipment outlook. Customer forecasts now extend into the first half of 2028, while some customers are discussing plans through 2030.
AI-related markets, including leading-edge logic, DRAM and advanced packaging, are driving about 80% of wafer fabrication equipment growth this year. Applied Materials expects a similar mix in 2027.
DRAM also represents a growing opportunity. The company estimates its revenue opportunity for every 100,000 greenfield wafer starts per month could rise from about $6 billion at 6F² technology to $6.5 billion at 4F² and $7.5 billion with 3D DRAM.
Meanwhile, Sullivan said value-based pricing is becoming increasingly important as the company seeks to capture more of the economic benefits its equipment delivers through better chip performance, yields and throughput.
AMAT Price Action: Applied Materials shares were down 0.67% at $492.85 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock
Read Next
Market News and Data brought to you by Benzinga APIs
Applied Materials čeká, že tržby z advanced packaging v roce 2026 vzrostou o více než 70 %. Firma zároveň posílila nabídku pro HBM, DRAM a 3D packaging.
Key Takeaways Applied Materials launched systems targeting HBM, 3D packaging, DRAM and process control in July 2026.AMAT expects advanced packaging revenues to grow more than 70% in 2026 as memory demand stays constrained.Its broad portfolio supports pricing power and reduces reliance on any single semiconductor technology cycle. Applied Materials (AMAT - Free Report) has been at the forefront of the wafer fabrication equipment space, driven by the rapid build-out of AI computing infrastructure, which is increasing the demand for higher system performance, power efficiency and cost optimization. In the advanced packaging space, AMAT has strong positions in high-bandwidth memory and 3D chiplet stacking.
In July 2026, Applied Materials introduced a suite of semiconductor manufacturing systems to accelerate next-generation AI chip production, particularly for HBM and advanced 3D packaging. The company launched an enhanced epitaxy system for DRAM, improving transistor performance and efficiency while reducing the fab footprint by 20%.
Three new CMP, copper deposition and PECVD systems target critical advanced-packaging processes, improving stacking yield and enabling higher-layer HBM designs. AMAT also introduced two eBeam metrology and defect-analysis systems for increasingly complex packaging substrates.
Overall, the launches strengthen Applied Materials’ positioning across DRAM, HBM, advanced packaging and process control as AI-driven semiconductor complexity rises. Applied Materials’ advanced packaging, along with leading-edge foundry-logic and DRAM, is expected to account for more than 80% of the year-over-year growth in wafer fab equipment spending in 2026.
AMAT is expected to gain tremendously as the data center memory space remains among the most supply-constrained markets amid massive demand. The eventual ramp-up of memory chip production gives AMAT an edge throughout 2026 and 2027, as it is a leading process equipment supplier in advanced packaging. Applied Materials now expects advanced packaging revenues to grow more than 70% in 2026.
How Competitors Fare Against AMATAMAT’s broad portfolio positions the company to capture a larger share of customer spending as semiconductor manufacturing becomes increasingly materials-intensive while also keeping its competitors like Lam Research (LRCX - Free Report) and Camtek (CAMT - Free Report) at bay. The breadth of Applied Materials' portfolio also reduces its dependence on any single semiconductor technology cycle and supports stronger pricing power.
Lam Research competes with Applied Materials in deposition and etch technologies, including advanced atomic layer deposition systems for leading-edge semiconductor manufacturing. Camtek focuses on semiconductor inspection, metrology, advanced packaging and high-performance computing applications.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 91.1% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 25.4%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 11.08X, higher than the industry’s average of 9.53X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 35% and 43%, respectively. Earnings estimates for fiscal 2026 and 2027 have been revised upward over the past seven days.
Image Source: Zacks Investment Research
Applied Materials currently flaunts a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABN AMRO Bank N.V. boosted its stake in Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 13.1% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 99,652 shares of the manufacturing equipment provider’s stock after purchasing an additional 11,532 shares during the period. ABN AMRO Bank N.V.’s holdings in Applied Materials were worth $71,856,000 at the end of the most recent quarter.
Other large investors also recently added to or reduced their stakes in the company. Financial Freedom LLC acquired a new position in shares of Applied Materials in the first quarter worth $28,000. Elevation Wealth Partners LLC increased its holdings in Applied Materials by 34.8% during the 2nd quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider’s stock worth $67,000 after purchasing an additional 24 shares during the period. Cornerstone Financial Management LLC purchased a new stake in Applied Materials during the 4th quarter worth about $25,000. Whipplewood Advisors LLC raised its position in Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock valued at $35,000 after purchasing an additional 70 shares in the last quarter. Finally, Wilkerson Advisory Group LLC acquired a new stake in Applied Materials in the 4th quarter valued at about $26,000. 80.56% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades A number of brokerages have recently commented on AMAT. B. Riley Financial reissued a “buy” rating and set a $700.00 price objective (down from $790.00) on shares of Applied Materials in a research report on Friday, August 14th. Royal Bank Of Canada raised their price objective on shares of Applied Materials from $520.00 to $600.00 and gave the company an “outperform” rating in a report on Friday, August 14th. Wall Street Zen raised Applied Materials from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Zacks Research upgraded Applied Materials from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Finally, JPMorgan Chase & Co. increased their price target on shares of Applied Materials from $515.00 to $660.00 and gave the company an “overweight” rating in a research note on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $659.83.
Read Our Latest Analysis on Applied Materials Insider Buying and Selling In other Applied Materials news, SVP Omkaram Nalamasu sold 24,263 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the transaction, the senior vice president directly owned 146,916 shares of the company’s stock, valued at approximately $87,184,361.88. The trade was a 14.17% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Timothy M. Deane sold 8,621 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the transaction, the senior vice president owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is currently owned by insiders.
Key Headlines Impacting Applied Materials Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Applied Materials was included in Zacks’ Rank #1 (Strong Buy) momentum list, reflecting continued favorable technical and fundamental sentiment after its substantial 2026 rally. Best Momentum Stock to Buy for August 19th Positive Sentiment: An analyst upgrade recently supported AMAT, while longer-term bullish arguments point to AI-driven semiconductor demand, a broad equipment portfolio and strong international revenue opportunities. Applied Materials Trading Higher Following Analyst Upgrade Neutral Sentiment: Applied Materials had surged about 98% in 2026 and 31% over three months, making it a major beneficiary of the AI-capital-spending trade but also leaving the stock vulnerable to profit-taking and shifts in expectations. Applied Materials Rockets 98% in 2026 Neutral Sentiment: Analysts remain constructive on AI-related growth and semiconductor demand, but AMAT’s premium valuation requires continued execution and strong forecasts to justify further gains. Should You Buy, Sell or Hold AMAT Stock Negative Sentiment: The immediate pressure is concentrated across chip-equipment names, including Applied Materials, Lam Research and Teradyne. Because the broader market is rising while the group sells off, investors appear concerned about the durability or timing of AI-related capital expenditures rather than interest rates alone. What Is Prompting the Selloff in Chip Equipment Stocks? Negative Sentiment: Investors are also questioning whether AMAT is “priced for perfection,” with its elevated earnings multiple increasing the risk of a sharper reaction to any slowdown in AI spending or semiconductor demand. Applied Materials Is Priced For Perfection Applied Materials Stock Down 3.5% Shares of NASDAQ:AMAT opened at $496.17 on Thursday. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $739.67. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The stock has a market cap of $393.94 billion, a P/E ratio of 42.77, a P/E/G ratio of 1.11 and a beta of 1.61. The firm has a fifty day moving average price of $565.29 and a 200 day moving average price of $449.54.
Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The firm had revenue of $9.12 billion for the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The business’s revenue was up 24.8% on a year-over-year basis. During the same quarter last year, the company posted $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts predict that Applied Materials, Inc. will post 12.65 EPS for the current year.
Applied Materials Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is 18.28%.
Applied Materials Company Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
See Also Five stocks we like better than Applied Materials Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Applied Materials zveřejnila za fiskální 3. čtvrtletí tržby 9,12 miliardy USD a upravený EPS 3,50 USD, obojí nad odhady. Firma zároveň zvýšila výhled na fiskální 4. čtvrtletí.
Carret Asset Management LLC cut its position in Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 4.6% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 31,772 shares of the manufacturing equipment provider’s stock after selling 1,521 shares during the quarter. Applied Materials makes up about 2.0% of Carret Asset Management LLC’s holdings, making the stock its 8th biggest position. Carret Asset Management LLC’s holdings in Applied Materials were worth $22,971,000 at the end of the most recent reporting period.
Several other institutional investors have also recently bought and sold shares of AMAT. Brighton Jones LLC increased its stake in shares of Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock worth $2,061,000 after purchasing an additional 2,771 shares during the period. Sivia Capital Partners LLC boosted its stake in Applied Materials by 26.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after purchasing an additional 679 shares during the period. Forefront Wealth Partners LLC bought a new stake in Applied Materials during the 2nd quarter valued at approximately $410,000. Schnieders Capital Management LLC. grew its holdings in Applied Materials by 30.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock valued at $2,747,000 after buying an additional 3,469 shares during the last quarter. Finally, Sei Investments Co. grew its holdings in Applied Materials by 59.3% in the 2nd quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock valued at $77,383,000 after buying an additional 157,426 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.
Key Stories Impacting Applied Materials Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks. Applied Materials Stock Performance NASDAQ AMAT opened at $507.18 on Monday. Applied Materials, Inc. has a twelve month low of $154.46 and a twelve month high of $739.67. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. The stock has a market cap of $402.68 billion, a P/E ratio of 43.72, a PEG ratio of 1.25 and a beta of 1.61. The company’s 50-day simple moving average is $564.15 and its 200 day simple moving average is $445.77.
Applied Materials (NASDAQ:AMAT – Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. The firm had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The company’s revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter last year, the company earned $2.48 earnings per share. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, research analysts forecast that Applied Materials, Inc. will post 12.48 earnings per share for the current fiscal year.
Applied Materials Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is 18.28%.
Insider Buying and Selling at Applied Materials In related news, Director Thomas J. Iannotti sold 9,250 shares of the business’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the sale, the director owned 40,559 shares of the company’s stock, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Prabu G. Raja sold 50,000 shares of the company’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $505.28, for a total value of $25,264,000.00. Following the completion of the sale, the insider owned 356,642 shares in the company, valued at $180,204,069.76. This trade represents a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 278,088 shares of company stock worth $169,654,805 over the last three months. 0.30% of the stock is currently owned by insiders.
Analyst Upgrades and Downgrades Several research analysts have commented on the company. Wells Fargo & Company lifted their price target on Applied Materials from $715.00 to $740.00 and gave the stock an “overweight” rating in a research report on Friday, June 26th. Wolfe Research increased their price objective on Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. Mizuho raised their price objective on shares of Applied Materials from $540.00 to $650.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 8th. Barclays boosted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the stock an “overweight” rating in a research report on Thursday, June 11th. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $645.00 target price on shares of Applied Materials in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Applied Materials has a consensus rating of “Moderate Buy” and a consensus price target of $640.17.
Read Our Latest Report on Applied Materials
Applied Materials Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Read More Five stocks we like better than Applied Materials The Metals Company’s Big Bet Now Comes Down to a License OneSpaWorld Keeps Turning Cruise Demand Into Record Earnings Meta and Tesla Are Rebounding From Oversold Levels—Now What? AMG’s Alternatives Boom Powers Record Growth
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Caitong International Asset Management ve 2. čtvrtletí zvýšila podíl v Applied Materials o 61,8 % na 8 938 akcií v hodnotě 6,462 milionu USD. Společnost je nyní 21. největší pozicí fondu.
Caitong International Asset Management Co. Ltd increased its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 61.8% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 8,938 shares of the manufacturing equipment provider’s stock after buying an additional 3,413 shares during the quarter. Applied Materials comprises about 0.9% of Caitong International Asset Management Co. Ltd’s holdings, making the stock its 21st largest position. Caitong International Asset Management Co. Ltd’s holdings in Applied Materials were worth $6,462,000 as of its most recent filing with the Securities & Exchange Commission.
Several other institutional investors have also recently added to or reduced their stakes in AMAT. Brighton Jones LLC grew its stake in shares of Applied Materials by 28.0% in the 4th quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider’s stock valued at $2,061,000 after purchasing an additional 2,771 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in shares of Applied Materials by 26.7% in the second quarter. Sivia Capital Partners LLC now owns 3,225 shares of the manufacturing equipment provider’s stock valued at $590,000 after purchasing an additional 679 shares during the period. Forefront Wealth Partners LLC purchased a new stake in shares of Applied Materials during the second quarter worth approximately $410,000. Schnieders Capital Management LLC. raised its stake in shares of Applied Materials by 30.1% during the second quarter. Schnieders Capital Management LLC. now owns 15,003 shares of the manufacturing equipment provider’s stock worth $2,747,000 after purchasing an additional 3,469 shares during the last quarter. Finally, Sei Investments Co. lifted its holdings in shares of Applied Materials by 59.3% during the second quarter. Sei Investments Co. now owns 422,694 shares of the manufacturing equipment provider’s stock worth $77,383,000 after purchasing an additional 157,426 shares during the period. Institutional investors and hedge funds own 80.56% of the company’s stock.
Insider Transactions at Applied Materials In other Applied Materials news, CEO Gary E. Dickerson sold 20,000 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $735.22, for a total value of $14,704,400.00. Following the completion of the transaction, the chief executive officer directly owned 1,599,843 shares of the company’s stock, valued at approximately $1,176,236,570.46. This trade represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Prabu G. Raja sold 10,000 shares of Applied Materials stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the sale, the insider owned 346,642 shares of the company’s stock, valued at approximately $219,608,106.26. The trade was a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 278,088 shares of company stock valued at $169,654,805. 0.30% of the stock is owned by company insiders.
Analyst Upgrades and Downgrades A number of equities analysts recently weighed in on AMAT shares. Susquehanna lifted their price objective on shares of Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. Raymond James Financial set a $650.00 price objective on shares of Applied Materials in a research report on Wednesday, June 10th. Needham & Company LLC restated a “buy” rating and issued a $740.00 target price on shares of Applied Materials in a research note on Friday. Barclays lifted their target price on shares of Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a report on Thursday, June 11th. Finally, Stifel Nicolaus boosted their price target on shares of Applied Materials from $530.00 to $650.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Applied Materials has a consensus rating of “Moderate Buy” and an average price target of $640.17.
Get Our Latest Report on Applied Materials
More Applied Materials News Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Record quarterly performance: Fiscal Q3 revenue rose 24.8% year over year to $9.12 billion, ahead of the $8.99 billion consensus estimate, while adjusted EPS of $3.50 exceeded expectations. AI infrastructure demand, advanced packaging and memory spending supported growth. Applied Materials Q3 Earnings Beat Estimates, Revenues Rise Y/Y Positive Sentiment: Above-consensus outlook: Management projected fiscal Q4 revenue of approximately $9.8 billion to $10.8 billion and EPS of $3.82 to $4.22, both above analyst expectations. The company also pointed to stronger systems growth and unusually long customer visibility into fiscal 2027 and beyond. Applied Materials Forecasts Quarterly Revenue Above Estimates Positive Sentiment: Analyst and institutional support: JPMorgan, RBC, TD Cowen, B. Riley, Needham and other firms maintained positive ratings or raised price targets. Soros Capital also reportedly added AMAT among several semiconductor positions, reinforcing the longer-term AI and chip-cycle investment case. Soros Capital Loads Up on Semiconductor Stocks Neutral Sentiment: Options imply a possible rebound: Derivatives-market data indicates traders expect the pullback could be temporary, although elevated volatility reflects uncertainty over the stock’s near-term direction. Applied Materials Options Data Negative Sentiment: Expectations were exceptionally high: Despite the earnings beat and upbeat guidance, investors wanted faster growth and clearer evidence that AMAT is outpacing rivals in semiconductor manufacturing equipment. Concerns about competition, margins and the pace of systems growth overshadowed the headline results. Applied Materials Slips as Investors Seek Faster Growth Negative Sentiment: Broader market pressure added to selling: Weaker July retail-sales data, profit-taking after record highs and a semiconductor-sector selloff weighed on AMAT and other AI-related stocks. Applied Materials Stock Performance Shares of AMAT stock opened at $507.18 on Monday. The business’s fifty day moving average price is $564.15 and its 200 day moving average price is $445.77. Applied Materials, Inc. has a 1-year low of $154.46 and a 1-year high of $739.67. The firm has a market capitalization of $402.68 billion, a PE ratio of 43.72, a P/E/G ratio of 1.25 and a beta of 1.61. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79.
Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The firm had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. During the same quarter in the prior year, the business posted $2.48 earnings per share. Applied Materials’s revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, sell-side analysts forecast that Applied Materials, Inc. will post 12.48 EPS for the current fiscal year.
Applied Materials Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 18.28%.
Applied Materials Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Featured Stories Five stocks we like better than Applied Materials The Metals Company’s Big Bet Now Comes Down to a License OneSpaWorld Keeps Turning Cruise Demand Into Record Earnings Meta and Tesla Are Rebounding From Oversold Levels—Now What? AMG’s Alternatives Boom Powers Record Growth Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Applied Materials (AMAT -5.12%) came into Thursday's fiscal third-quarter report about 28% beneath its 52-week high of $739.67, closing the session at $534.54.
The chip-equipment maker then posted records on nearly every line. Revenue came in at $9.1 billion, up 25% year over year. Non-GAAP (adjusted) earnings per share rose 41% to a record $3.50. Operating income and operating cash flow set records, too, with the latter topping $3 billion.
Management then guided fiscal fourth-quarter revenue to $10.25 billion, plus or minus $500 million, good for 51% year-over-year growth at the midpoint. The stock fell about 5% in after-hours trading anyway.
A company reporting records while its shares sit more than a quarter below their high makes for a disagreement worth taking seriously. What is the market discounting that the income statement isn't showing?
Image source: Getty Images.
Accelerating growth
Not only is the growth strong, but it's also speeding up. Revenue rose 15% sequentially -- growth that CEO Gary Dickerson called "the highest quarter-on-quarter revenue growth in the company's history" on the earnings call -- on top of the 25% year-over-year gain. Non-GAAP gross margin reached 50.4%, the 13th consecutive quarter of year-over-year expansion, and non-GAAP operating margin hit a record 34%. DRAM revenue, which includes high-bandwidth memory (HBM) packaging, grew 52% year over year to record levels.
And the fiscal fourth-quarter guide points the same direction: 25% year-over-year growth in fiscal Q3 becomes 51% at the fiscal Q4 midpoint, with non-GAAP earnings per share guided to $4.02, up 85% -- a comparison helped by a soft year-ago quarter, when revenue had dipped.
The demand behind those numbers is the artificial intelligence (AI) build-out. Management said leading-edge chipmaking, DRAM, and advanced packaging should represent about 80% of the growth in the wafer fab equipment market in 2026 and 2027. Those are the areas it calls most important to AI computing, and where it says it holds leadership positions. It also expects a very significant increase in DRAM revenue in the second half of the calendar year as memory makers expand cleanroom capacity.
Even the familiar overhang softened. The company said it now expects its China revenue to increase this calendar year, led by investments in 28-nanometer chipmaking, where it has strong market positions. And shareholders get a large share of the cash. Management said it expects to distribute 80% to 100% of free cash flow, with $12.8 billion remaining on its buyback authorization.
Why is the stock down, then?
Semiconductor equipment is a cyclical business, and the spending boom driving these records is also the reason for the market's caution. Applied's customers are racing to add AI capacity, and when capacity races end, equipment orders are among the first things cut.
The guided quarter would put revenue about 50% above a year earlier. The bigger the step up, the further orders could fall if spending normalizes.
The stock's own path shows how much optimism came and went. Shares ran from a 52-week low of $154.47 to a high of $739.67 inside a year. Even after the pullback since, the stock has more than tripled off that low as of Thursday's close.
And the price still assumes a lot. At Thursday's close, the multiple on Applied's last 12 months of earnings is about 50. On analysts' estimates for the next 12, it is about 31. A price like that already pays for the guided surge -- the forecast 85% earnings jump for fiscal Q4 is baked in.
Today's Change
(
-5.12
%) $
-27.36
Current Price
$
507.18
A high bar either way
Sure, 31 times forward earnings is a high bar for a cyclical company. But shares this far below their high are not priced with euphoria, either. The market appears to be paying up for next year while refusing to pay for the years after it.
I'd argue that split is about duration, and duration is the honest uncertainty here. Applied's records say nothing about how many quarters of 50% growth remain, and no guide can say much beyond the quarter it covers.
What Thursday's report did establish is that the current stretch of demand keeps strengthening -- the two strongest quarters in the company's history are this one and, if guidance holds, the next one.
The gap between record results and a stock more than a quarter below its high comes down to how long the AI equipment cycle runs. The report added one more quarter of evidence that demand is still building. It couldn't add more than that.
Akcie Applied Materials před otevřením trhu klesly asi o 5 %, protože silný výhled investory neuklidnil kvůli rostoucí konkurenci. Firma po prudkém růstu letos více než zdvojnásobila cenu akcií.
A smartphone with a displayed Applied Materials logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
Aug 14 (Reuters) - Applied Materials (AMAT.O), opens new tab shares fell about 5% in premarket trading on Friday, as the chip equipment maker's upbeat outlook failed to soothe investors worried about the threat from intensifying competition.
The muted reaction illustrates the high bar chip stocks have to clear and suggests that investors have little tolerance for any hint that a company may be falling behind peers.
The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.
After a sharp rally that has more than doubled Applied's shares this year, investors want clearer signals that the company's growth is outpacing rivals in the wafer-fab-equipment market.
Summit Insights Group said Applied's topline performance has lagged peers such as Dutch chip-equipment maker ASML (ASML.AS), opens new tab and Lam Research.
The company forecast fourth-quarter revenue of about $10.25 billion a day earlier, above the $9.54 billion consensus estimate and forecast that margin would be steady at 50.4% in the October quarter.
Morgan Stanley said the flat outlook was not a major concern amid capacity expansion, but leaves the company exposed to investor demands.
Rivals Lam Research (LRCX.O), opens new tab and KLA (KLAC.O), opens new tab last month reported upbeat results, and ASML lifted its 2026 outlook.
Applied Materials shares are at 32.14 times the expected earnings over the next 12 months, according to data from LSEG. That compares with 34.59, 36.85 and 33.39 for Lam, KLA and ASML, respectively.
Reporting by Akriti Shah in Bengaluru; Editing by Mrigank Dhaniwala
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Applied Materials oznámila výsledky za 3. fiskální čtvrtletí 2026. V konferenčním hovoru k nim uvedla i upozornění na rizika a ne-GAAP finanční ukazatele.
Applied Materials, Inc. (AMAT) Q3 2026 Earnings Call August 13, 2026 4:30 PM EDT
Company Participants
Michael Sullivan - Corporate Vice President of Investor Relations
Gary Dickerson - President, CEO & Executive Director
Brice Hill - Senior VP, CFO & leads Global Information Services
Conference Call Participants
Christopher Muse - Cantor Fitzgerald & Co., Research Division
Vivek Arya - BofA Securities, Research Division
Stacy Rasgon - Bernstein Institutional Services LLC, Research Division
Timothy Arcuri - UBS Investment Bank, Research Division
Sreekrishnan Sankarnarayanan - TD Cowen, Research Division
Harlan Sur - JPMorgan Chase & Co, Research Division
Blayne Curtis - Jefferies LLC, Research Division
James Schneider - Goldman Sachs Group, Inc., Research Division
Mehdi Hosseini - Susquehanna Financial Group, LLLP, Research Division
Srinivas Pajjuri - RBC Capital Markets, Research Division
Presentation
Operator
Welcome to the Applied Materials Third Quarter of Fiscal 2026 Earnings Call. [Operator Instructions]
I would now like to turn the call over to Mike Sullivan, Corporate Vice President of Investor Relations. Please go ahead.
Michael Sullivan
Corporate Vice President of Investor Relations
Good afternoon, everyone, and thank you for joining today's call. With me are Gary Dickerson, our President and CEO; and Brice Hill, our Chief Financial Officer.
Before we begin, I'd like to remind you that today's call includes forward-looking statements, which are subject to risks and uncertainties that could cause our actual results to differ. Information concerning these risks and uncertainties is discussed in our most recent Form 10-Q and other filings with the SEC.
Today's call also includes non-GAAP financial measures. Reconciliations to GAAP measures can be found in today's earnings press release and in our quarterly earnings materials, which are available on our website at ir.appliedmaterials.com.
In addition, any comments regarding calendar 2026 refer to Q2 of this fiscal year through Q1 of fiscal 2027, which will be a 14-week quarter.
Applied Materials ve 3. čtvrtletí překonala odhady: tržby dosáhly 9,115 miliardy USD a upravený EPS činil 3,50 USD. Firma zároveň zvýšila výhled na 4. čtvrtletí na tržby 10,25 miliardy USD a upravený EPS 4,02 USD.
Live Coverage Updates appear automatically as they are published.
Live Updates 6 minutes ago
Live
That wraps up our initial coverage of AMAT’s Q3 results. Thank you for stopping by!
15 minutes ago
Live
Applied Materials generated a record $3.04 billion in operating cash flow during the quarter and $2.33 billion in non-GAAP free cash flow, up 14% year over year.
This helped the business return $860 million to shareholders through $440 million in share repurchases and $420 million in dividends.
Meanwhile, China declined to 28% of total revenue from 35% a year ago, with sales slipping slightly from $2.55 billion to $2.51 billion.
Growth elsewhere more than offset that weakness: U.S. revenue doubled to $1.37 billion, while European revenue more than tripled to $483 million.
That geographic shift leaves Applied Materials less dependent on China while positioning the company to benefit from the global expansion of semiconductor manufacturing capacity.
17 minutes ago
Live
Applied Materials’ core Semiconductor Systems segment generated $7.04 billion in Q3 revenue, up 27% from $5.56 billion a year earlier.
Non-GAAP operating income climbed 45% to $2.67 billion, while operating margin expanded from 33.2% to 38.0%.
DRAM increased to 26% of segment revenue from 22% last year, and AMAT also introduced six new systems targeting DRAM and advanced packaging, including technology designed to support 12-layer, 16-layer, and future higher-layer-count HBM designs.
The combination of accelerating revenue growth and expanding profitability reinforces management’s view that Applied Materials can grow faster than the broader semiconductor equipment market.
26 minutes ago
Live
Applied Materials’ momentum is expected to accelerate into the fourth quarter. Management guided for $10.25 billion in revenue, plus or minus $500 million, and $4.02 in non-GAAP EPS, plus or minus $0.20.
At the midpoint, revenue would rise another 12% sequentially after Applied Materials just delivered the highest sequential revenue growth in its history.
CEO Gary Dickerson also raised the company’s calendar 2026 Semiconductor Systems outlook and said stronger customer visibility points to “another strong growth year” in 2027.
The outlook suggests that spending on AI chips, DRAM, leading-edge foundry logic, and advanced packaging remains firmly in expansion mode. Still, Applied Materials shares are down 2.5% following the Q3 earnings release.
30 minutes ago
Live
Applied Materials just reported earnings, with shares initially down 4% despite beating expectations on both the top and bottom lines. Here are the key numbers:
Revenue: $9.115 billion vs. $9.00 billion expected Adjusted EPS: $3.50 vs. $3.39 expected Quick Read:
Revenue increased 25% year over year and 15% sequentially, while EPS jumped 41% year over year and 22% from the previous quarter.
The initial selloff suggests investors were looking for more after Applied Materials’ enormous run over the past year.
Attention will now turn to management’s outlook, margins, China exposure, and commentary surrounding AI, high-bandwidth memory, and Gate-All-Around demand.
44 minutes ago
Live
Across the last five quarters, Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) has beaten every time, yet the immediate reaction has averaged -2.18% day-of.
The largest single-day drop was -14.07% following Q3 FY2025, while Q1 FY2026 delivered the biggest pop at +8.08%. Forward guidance drives direction more than beat size.
Initial reactions rarely hold. Every 30-day window post-report has been positive, ranging from -1.53% to +35.8%. Even the ugly August 2025 sell-off recovered +10.12% within a month.
With shares near $540.99 and a forwardP/E of 36, tonight’s guidance and any China commentary will matter far more than the headline beat itself.
50 minutes ago
Live
With Applied Materials (NASDAQ:AMAT) set to report Q3 earnings at 4:00 PM ET, here is the preview framework for tonight’s call.
Top 5 Analyst Questions Is the >30% calendar 2026 WFE growth guide sustainable, or front-loaded? China trajectory after falling to 27% of Q2 revenue from 35% a year ago? HBM/DRAM share versus ASML, Lam, and KLA? Free cash flow recovery after Q2 FCF dropped 80.2%? ASMPT NEXX close timing and Gate-All-Around 2nm traction? Key Topics and Buzzwords Listen for: EPIC Center, book-to-bill, capacity digestion, leading-edge logic. Gross margin push beyond the 50.0% Q2 mark. Red Flags Any softer Q4 guide echoing the Q3 FY2025 China-driven guide-down. Fresh export-control commentary following the $253M BIS settlement. Working-capital drag persisting into Q4. 55 minutes ago
Live
Options positioning suggests traders are bracing for volatility. The August 14 expiration shows put volume exceeding calls by 35%, while the August 21 chain flips call-heavy (2.3x put volume), signaling expected turbulence followed by directional conviction.
Investors will watch the DRAM mix (29% last quarter) as a proxy for HBM demand, plus advanced packaging commentary tied to the 50%+ packaging growth target.
AMAT’s historical pattern warrants caution: across five straight beats, the average earnings-day change is -2.18%, and Q3 FY25 fell 14.07% on soft guidance.
Upside trigger: revenue near the $9.45B high end or Semi Systems topping $7B. Downside trigger: any cut to the 30% equipment growth outlook, fresh China commentary, or a light Q4 guide. 57 minutes ago
Live
Guidance Is Everything: What Q4 Signal Investors Need Tonight’s headline numbers matter less than the Q4 FY26 outlook. Wall Street is anchored to management’s $8.95 billion revenue and $3.36 EPS guide, plus the more than 30% calendar 2026 equipment growth call.
CEO Gary Dickerson guides conservatively with +/- $500 million ranges, yet has raised the annual outlook twice this year.
Bullish scenario: Q4 revenue above $9.5 billion, EPS above $3.60, growth lifted toward 35%, DRAM/HBM mix expanding, and gross margin beyond 50.0%. Bearish scenario: Guide below $8.5 billion, a maintained (not raised) full-year outlook, weaker China commentary, or any AI capex digestion language echoing the Q3 FY25 China miss. After a 193.05% one-year run, investors are likely looking for guidance to be raised tonight.
59 minutes ago
Live
Beyond the China overhang, four surprise factors could swing tonight’s reaction.
First, the $253M settlement with the Commerce Department’s Bureau of Industry and Security in Q1 leaves export-license commentary as a live catalyst. Second, options positioning is defensive: tomorrow’s expiration shows put volume of 12,267 versus 9,060 calls, signaling hedged books despite the 94.1% Polymarket beat probability. Third, HBM/DRAM mix now sits at 29% of Semi Systems, up from 27%, making any AI-memory commentary market-moving. Fourth, history warns of asymmetric downside: Q3 FY2025 fell -14.07% day-of despite a 5.09% beat. 1 hour ago
Live
Applied Materials enters tonight’s Q3 earnings with expectations running high. Management’s guidance calls for $8.95 billion in revenue and $3.36 in non-GAAP EPS, while its 2026 equipment growth outlook has been raised to more than 30%.
AI infrastructure, high-bandwidth memory, and Gate-All-Around transistor demand continue to power the AI-equipment supercycle.
However, free cash flow fell 80.21% last quarter due to working-capital pressure, while China, which is responsible for 27% of revenue, remains a major wildcard.
Polymarket traders assign a 94.1% probability that Applied Materials beats expectations. Yet with the stock soaring 193.05% over the past year, a simple beat is likely not what the market is pricing in. Analysts carry a consensus price target of $633.34, with 32 Buy ratings.
Applied Materials (NASDAQ:AMAT) reports Q3 FY2026 after the market closes today at 4:00 PM ET. With shares up 113.83% year to date, investors are waiting to see the company’s guidance and commentary on China.
Last Quarter’s Backdrop Last quarter, Applied Materials delivered $7.91 billion in revenue, up 11.41% YoY, and non-GAAP EPS of $2.86, a 6.56% beat. The company’s Semiconductor Systems segment margin expanded to 35.1% from 32.8%, and DRAM mix rose to 29% on HBM demand.
However, operating cash flow dropped 46.21% to $845 million. Shares have gained 24.58% since the May 14 filing, outpacing both SPY and QQQ.
Consensus Estimates Metric Q3 FY26 Guide YoY vs Q3 FY25 FY25 Actual FY26 Trajectory Revenue $8.95B vs $7.302B $28.368B Equip. >30% growth EPS (Non-GAAP) $3.36 vs $2.48 $9.42 Accelerating The midpoint implies a step change from the $7.302B that AMAT posted a year ago. Semi Systems is doing the heavy lifting, and the raised calendar-2026 target signals confidence in orders through year-end.
What I’m Watching Tonight: Margins, China, and AI Order Cadence Tonight, I’ll be watching four things. First, Semi Systems’ operating margin. 35.1% set a new bar last quarter, and any give-back would sting given the stock’s current multiple. Second, DRAM and HBM mix. Management flagged HBM as the primary driver behind the DRAM step-up, and SK hynix, Micron, and Samsung are all named EPIC Center partners.
Third, the Gate-All-Around ramp. New tools, including Precision Selective Nitride PECVD and Trillium ALD, are tied to the 2nm transition at TSMC and others. Investors will also focus on order commentary tied to those platforms. Fourth, China. $2.087 billion came from China last quarter, and the $253 million BIS settlement earlier this year underscores export policy.
Free cash flow is another wildcard analysts will be watching. FCF of just $210 million against record revenue drew scrutiny, and Reddit debate on July 29 swung from a bullish score of 72 to bearish 32 within hours. Full-chain put/call sits at 1.02, hedged positioning.
Earnings History Quarter EPS Surprise 1-Day Move 1-Week Move 30-Day Move Q2 FY26 +6.56% -5.28% -1.02% +35.8% Q1 FY26 +7.84% +1.19% +5.25% -1.53% Q4 FY25 +2.36% +1.19% -0.88% +9.85% Q3 FY25 +5.09% +1.09% +0.45% +10.12% On average, shares moved roughly -0.21% one week after earnings over the past year, with recovery within 30 days.
Contact [email protected] for any questions or corrections.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Applied Materials čeká ve 3. čtvrtletí rekordní výnosy 9,00 miliardy USD a EPS 3,39 USD. Akcie jsou letos výše o 105,1 %, ale od červnového maxima jsou níže o 25 %.
Applied Materials (NASDAQ:AMAT) looks to get its stock back to all-time highs when the company reported third-quarter financial results Thursday after market close.
Here are the earnings estimates, what experts are saying ahead of the report and key items to watch.
Applied Materials Q3 EarningsAnalysts expect Applied Materials to report third-quarter revenue of $9.00 billion, up from $7.30 billion in last year’s third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in four straight quarters and in nine of the last 10 quarters overall.
The estimate calls for record revenue, surpassing the $7.91 billion reported in the second quarter by the company.
Analysts expect Applied Materials to report third-quarter earnings per share of $3.39, up from $2.48 in last year’s third quarter.
The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.
Read Next
Applied Materials Analyst RatingsBank of America Securities analysts highlighted Applied Materials as an AI-related stock to consider buying after a pullback in July. Analyst Vivek Arya said the selloff creates an entry point after hitting all-time highs on June 30 and falling in July.
The analyst rated Applied Materials with a Buy rating and $720 price target in July.
Arya said Applied Materials is the largest and most diversified name in the group, giving exposure to many corners of the upcycle.
With shares trading at 28 times forward earnings estimates at the time of the note, Arya said this was the widest discount to peers in five years.
Here are recent analyst ratings on Applied Materials and their price targets:
William Blair: Assumes with Market Perform rating, no price target UBS: Maintained Buy rating, raised price target from $570 to $705 Stifel: Maintained Buy rating, raised price target from $530 to $650 Needham: Maintained Buy rating, raised price target from $530 to $740 Key Items to WatchApplied Materials has been one of the hottest stocks in major indexes in 2026, but shares are currently down 25% from all-time highs set back on June 30.
The stock is a member of major indexes and a key holding in semiconductor ETFs, which could make any volatility in shares after the earnings report felt sector wide. Here are some of the top ETFs that have AMAT stock and their exposure:
SPDR S&P 500 ETF Trust (NYSE:SPY): 0.6%, 25th largest holding Invesco QQQ Trust (NASDAQ:QQQ): 1.8%, 16th largest holding iShares Semiconductor ETF (NASDAQ:SOXX): 5.0%, 6th largest holding VanEck Semiconductor ETF (NASDAQ:SMH): 4.8%, 7th largest holding The semiconductor company looks to gain momentum again and get shares back to all-time highs.
Analysts expect record results, which could ramp up the pressure on the company.
Second-quarter revenue was up 11% year-over-year, with the company highlighting strong leadership positions in several sectors. In the company’s guidance, they said semiconductor equipment segment revenue is expected to be up 30% year-over-year in calendar 2026, up from prior guidance of 20% year-over-year.
That optimism and strong guidance from the company could be enough to power record results.
The question is how much of a beat is needed from the company, or how strong guidance needs to be going forward, for investors to be excited and send shares higher.
Applied Materials Stock Price ActionApplied Materials stock is up 5.0% to $551.68 on Wednesday versus a 52-week trading range $154.46 to $739.67. Applied Materials stock is up 105.1% year-to-date in 2026.
Read Next
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Applied Materials klesly během středečního obchodování o 2,3 % poté, co Erste Group Bank snížila doporučení z „koupit“ na „držet“. Akcie se obchodovaly až na 530,57 USD.
Applied Materials, Inc. (NASDAQ:AMAT – Get Free Report)’s stock price was down 2.3% during trading on Wednesday after Erste Group Bank downgraded the stock from a buy rating to a hold rating. The company traded as low as $530.57 and last traded at $534.24. Approximately 5,051,443 shares were traded during trading, a decline of 39% from the average daily volume of 8,260,841 shares. The stock had previously closed at $546.62.
A number of other research firms have also weighed in on AMAT. The Goldman Sachs Group reissued a “buy” rating and issued a $645.00 price objective on shares of Applied Materials in a research report on Monday. Royal Bank Of Canada lifted their target price on shares of Applied Materials from $500.00 to $520.00 and gave the stock an “outperform” rating in a research note on Friday, May 15th. HSBC reiterated a “buy” rating and issued a $683.00 price target on shares of Applied Materials in a report on Monday, July 27th. HC Wainwright set a $850.00 price objective on Applied Materials in a report on Monday, June 29th. Finally, Stifel Nicolaus upped their target price on Applied Materials from $530.00 to $650.00 and gave the company a “buy” rating in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $603.23.
View Our Latest Stock Analysis on AMAT
Insider Activity In other news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president directly owned 134,631 shares of the company’s stock, valued at approximately $79,534,609.56. The trade was a 6.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total value of $14,398,392.09. Following the sale, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 278,088 shares of company stock worth $169,654,805 in the last ninety days. 0.30% of the stock is currently owned by company insiders.
Applied Materials News Summary Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Applied Materials continues to benefit from strong semiconductor-equipment fundamentals. The company recently exceeded quarterly earnings and revenue expectations, with revenue rising 11.4% year over year, and issued third-quarter fiscal 2026 EPS guidance of $3.16–$3.56. A broader semiconductor rally, driven by AI optimism and strong memory demand, is also supportive for equipment suppliers. Semiconductor Rally Powers S&P 500 to Fresh Record High Positive Sentiment: Wall Street’s average recommendation remains equivalent to a Buy, indicating that analysts generally expect continued upside from Applied Materials’ exposure to semiconductor manufacturing and AI-related capital spending. Wall Street Analysts See Applied Materials as a Buy Neutral Sentiment: The semiconductor sector has rallied sharply, helping lift major indexes to records. That momentum supports AMAT’s industry backdrop, but it may also increase valuation and profit-taking risk after a strong run. Semiconductor ETFs Surge as the AI Trade Ramps Back Up Negative Sentiment: Applied Materials was reportedly among the large-cap stocks shorted by Michael Burry, who has warned of a potential 1987-style market selloff. The report is weighing on sentiment toward highly valued chip-related stocks, even though Burry’s position is an opinion rather than a change in AMAT’s business outlook. Applied Materials Faces Fresh Scrutiny After Michael Burry Short Bet Negative Sentiment: Erste Group Bank AG downgraded Applied Materials from “buy” to “hold,” adding near-term pressure to the stock and reinforcing concerns that its elevated valuation leaves less room for disappointment. Finviz Analyst Rating Information Hedge Funds Weigh In On Applied Materials Several large investors have recently modified their holdings of the stock. JFS Wealth Advisors LLC boosted its holdings in shares of Applied Materials by 4.3% in the 2nd quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after acquiring an additional 17 shares during the last quarter. Innovative Asset Advisors Group LLC boosted its stake in shares of Applied Materials by 2.1% in the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after buying an additional 20 shares during the last quarter. Stonebridge Financial Group LLC raised its position in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock valued at $725,000 after acquiring an additional 21 shares in the last quarter. Basecamp Wealth Advisors LLC raised its position in Applied Materials by 0.7% during the first quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider’s stock valued at $1,124,000 after acquiring an additional 22 shares in the last quarter. Finally, Financial Management Professionals Inc. lifted its holdings in Applied Materials by 2.2% in the second quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider’s stock valued at $752,000 after acquiring an additional 22 shares during the period. Institutional investors own 80.56% of the company’s stock.
Applied Materials Price Performance The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock has a fifty day simple moving average of $556.14 and a 200-day simple moving average of $435.59. The company has a market capitalization of $424.17 billion, a price-to-earnings ratio of 50.16, a P/E/G ratio of 1.39 and a beta of 1.61.
Applied Materials (NASDAQ:AMAT – Get Free Report) last issued its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.68 by $0.18. The business had revenue of $7.91 billion for the quarter, compared to analysts’ expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The business’s revenue was up 11.4% on a year-over-year basis. During the same quarter last year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts anticipate that Applied Materials, Inc. will post 12.14 EPS for the current year.
Applied Materials Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.
Applied Materials Company Profile (Get Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Recommended Stories Five stocks we like better than Applied Materials SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINESnap (NYSE:SNAP) Trading Down 8.1% on Analyst Downgrade
NEXT HEADLINE »Eli Lilly and Company (NYSE:LLY) Trading 4.9% Higher Following Better-Than-Expected Earnings
Applied Materials před zveřejněním výsledků 13. srpna čeká na potvrzení silného růstu: vedení zvýšilo výhled růstu v oblasti polovodičových zařízení pro rok 2026 na více než 30 %. Analytici zároveň očekávají tržby 8,95 miliardy USD a non-GAAP EPS 3,36 USD.
At $534.24, Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) sits at a decision point heading into the August 13 earnings report. The stock has staged one of the sharpest recoveries in large-cap semis this year, and the earnings report will decide whether the next leg is toward $600 or back into the low $400s.
Applied Materials is the largest wafer fab equipment vendor by revenue, selling deposition, etch, and inspection tools to TSMC, Samsung, SK hynix, Micron and Intel. It has ridden the Gate-All-Around transition and the HBM buildout hard: shares are up 108.4% year to date and 200.44% over the past year. After peaking near $739.67, a July drawdown pulled the stock back before a 22.41% one-week rebound heading into the report.
Why the Setup Looks Explosive Management raised its calendar 2026 semi equipment growth outlook to more than 30%, and Q3 guidance calls for revenue of $8.95 billion and non-GAAP EPS of $3.36, up nearly 36% year over year. Q2 already delivered $7.91 billion in revenue and $2.86 EPS, a 6.56% beat.
CEO Gary Dickerson expects packaging revenues to grow more than 50% in calendar 2026, with leading-edge foundry logic, DRAM and advanced packaging driving more than 80% of WFE growth. Morningstar raised its fair value to $520 and flagged global WFE spending above $150 billion in 2026. Polymarket puts the odds of another beat at 92.5%.
Why the Rally Could Snap Applied trades at 32 times forward earnings and 51 times trailing, rich for a cyclical toolmaker. Free cash flow collapsed 80.21% year over year to $210 million on working capital build, and operating cash flow fell 46.21%.
China still contributes 27% of revenue after a $253 million BIS settlement, and history shows Applied often sells off on earnings day. The average day-of reaction across the last five beats is -2.18%, including a -14.07% drop after Q3 2025. KLA beat last week and still dipped, a warning that the bar is high.
Why Patience Wins Buy conviction requires the October-quarter guide to hold above $8.95 billion with commentary confirming 2027 strength; Sell conviction requires softness on China licenses or a walk-back on the 30% growth outlook. Both answers arrive only with Wednesday’s report.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Applied Materials didn't make the cut. Grab the names FREE today.
Q2 gross margin at 50%, Semi Systems operating margin at 35.1%, and a 15% dividend hike make it hard to sell here. But the 108.4% YTD move makes it hard to chase.
What the Numbers Say Applied Materials trades at $534.24 against an analyst average target of $629.09, implying roughly 18% upside if consensus is right, though targets are one data point rather than a promise. Of 39 analysts, 32 rate it Buy or Strong Buy, 7 Hold, and none Sell.
YTD, AMAT is up 108.4%, dwarfing the S&P 500’s low-single-digit gain implied by SPY’s move to $769.79. The 200-day moving average sits at $374.97, showing how much technical distance the stock has traveled.
The Verdict: Hold Through the Earnings Report At $534.24, Applied Materials is a Hold. A clean beat plus October-quarter guidance confirming the 2027 record year commentary from CFO Brice Hill would validate the analyst target and open a path back toward $600. Any hedge on China license timing, HBM order pacing, or 2027 buildouts pushes shares back into the range-bound zone described earlier.
The cost of waiting one week is small; the cost of buying at a 32 forward multiple into a report where the crowd already prices in a 92.5% beat probability is asymmetric to the downside. Investors should watch the October revenue guide, packaging commentary, and China licensing color. When a stock has doubled YTD and history shows a -2.18% average earnings-day move, patience through one report is the cheapest option available.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Applied Materials didn't make the cut. Grab the names FREE today.
Akcie Applied Materials ve čtvrtek 30. července vyskočily asi o 15 % bez vlastních zpráv, tažené růstem sektoru po výsledcích Lam Research. Akcie jsou ale stále více než 30 % pod 52týdenním maximem a další test přijde 13. srpna s výsledky.
Applied Materials (AMAT +1.18%) rose about 15% on Thursday, July 30, without releasing any news of its own. Shares closed that day at $501.77 and edged higher again on Friday, leaving them more than 30% short of their 52-week high of $739.67. And the company's next chance to justify the move arrives on Thursday, Aug. 13, when it reports fiscal third-quarter results.
The catalyst was a peer, not Applied itself. Lam Research, which sells chip-manufacturing equipment into many of the same factories, reported record June-quarter revenue, operating margin, and earnings per share on Wednesday, and it guided for about $8.1 billion in September-quarter revenue.
Investors marked up equipment stocks across the board on Thursday, and Applied Materials, already up more than 200% from its 52-week low of $154.47, moved with them.
Image source: Getty Images.
The Aug. 13 test Applied's own most recent update supports the optimism. In May, the company reported record fiscal second-quarter results: Revenue rose 11% year over year to $7.91 billion, and non-GAAP (adjusted) earnings per share grew 20% to $2.86. Management guided for fiscal third-quarter revenue of about $8.95 billion, plus or minus $500 million, which would be another record. Also worth noting, Applied raised its quarterly dividend 15% this year, to $0.53 per share, its ninth straight annual increase.
CEO Gary Dickerson said at the time that the company expects its semiconductor equipment business to grow more than 30% in calendar 2026. In the earnings release, he said the artificial intelligence (AI) build-out, combined with the company's positions in leading-edge logic, DRAM, and advanced packaging, provides "an exceptionally strong foundation for sustained, multi-year revenue and profit growth."
Today's Change
(
1.18
%) $
5.90
Current Price
$
507.67
So the Aug. 13 report has two jobs. It needs to deliver on the roughly $9 billion revenue guide, and it needs to show demand strong enough to back that 30% growth call for the calendar year.
Until then, Thursday's gain is a bet on results Applied hasn't reported yet. The AI spending wave that lifted Lam Research favors the whole equipment group, and Applied's May numbers suggest it is riding the same demand.
But a move this large gets confirmed on earnings day, and investors will get their answer in less than two weeks.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials and Lam Research. The Motley Fool has a disclosure policy.
Applied Materials je považována za bezpečnější sázku díky širšímu portfoliu pro výrobu čipů a AI packaging; v roce 2026 má více než 80 % růstu výdajů táhnout foundry, DRAM a advanced packaging.
Key Takeaways Applied Materials' broad chip equipment portfolio supports AI-driven advanced packaging growth.AMAT expects foundry, DRAM and advanced packaging to drive most 2026 equipment spending growth.Qnity posted strong AI-related growth but faces inventory, debt and China exposure risks. Applied Materials, Inc. (AMAT - Free Report) and Qnity Electronics (Q - Free Report) are two prominent players in the semiconductor supply chain, both involved in advanced packaging and stand out as major beneficiaries of the AI-driven semiconductor upcycle. Applied Materials sits at the heart of chip manufacturing, supplying critical equipment used by foundries to produce advanced semiconductors, and Qnity Electronics serves the fast-growing semiconductor market with a broad portfolio of advanced materials, CMP consumables, advanced packaging, interconnect chemistry and thermal management.
Given the major tailwind, let’s analyze their business models, risk profiles and long-term outlooks and examine which one looks like the better investment right now.
The Case for Applied Materials StockApplied Materials is its unmatched breadth across semiconductor wafer fabrication equipment manufacturing. Applied Materials offers solutions across deposition, materials engineering, etch, metrology, inspection, packaging and process integration, allowing customers to optimize manufacturing flows using a single vendor across multiple stages of production.
Management believes that leading-edge foundry-logic, DRAM and advanced packaging will account for more than 80% of the year-over-year growth in wafer fabrication equipment spending during 2026. In the second quarter of fiscal 2026, Applied Global Services, which accounts for AMAT’s equipment servicing business, generated $1.665 billion of revenues, up from $1.42 billion a year earlier, while its gross margin improved to 34.7% and its operating margin rose to 29.2%.
AMAT already offers what it describes as the industry’s broadest portfolio for the emerging panel trend, spanning chemical vapor deposition, etch, physical vapor deposition, digital lithography, electrochemical deposition and e-beam metrology and test. Now it plans to strengthen this portfolio through its acquisition of the NEXX business from ASMPT. The combined portfolio of NEXX and AMAT is designed to help chipmakers and systems companies build larger AI accelerators with higher energy-efficient performance.
Revenue composition further highlights the shift toward AI-driven semiconductor investment. Foundry, logic and other applications contributed 67% of segment revenues, DRAM accounted for 29%, and flash memory represented just 4%. The higher contribution from foundry-logic and DRAM is increasingly driving demand for leading-edge logic chips, high-bandwidth memory and advanced packaging technologies.
Collaboration is another important element of Applied Materials’ packaging strategy. Through the EPIC Center, AMAT and SK hynix plan to work on next-generation DRAM, HBM and 3D advanced packaging. These factors establish AMAT at a sweet spot in the packaging business. The Zacks Consensus Estimate for AMAT’s 2026 earnings is pegged at $12.14, implying year-over-year growth of 29%. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
The Case for Qnity Electronics StockQnity Electronics is benefiting from rising semiconductor complexity as AI shifts the industry from traditional transistor scaling toward vertically stacked chip architectures, where materials intensity, integration and reliability become increasingly critical. The company's momentum is already translating into strong financial performance. In first-quarter 2026, net sales increased 18% year over year to $1.32 billion, while organic sales grew 17%.
During the first quarter, organic sales in the Semiconductor Technologies segment grew 12%, supported by advanced logic, HBM, improving NAND demand and higher fab utilization. Qnity noted that 3-nanometer production continues to ramp up while meaningful activity has begun at 2-nanometer nodes. Adjusted operating EBITDA rose 22% to $411 million, and adjusted EBITDA margin expanded 125 basis points to 31.3%.
Qnity Electronics’ interconnect solutions (ICS) segment has become its fastest-growing business. The segment delivered 22% organic sales growth during the first quarter, driven by advanced packaging, advanced interconnects and thermal management. Revenues from these core AI-related product categories increased more than 50% year over year as the company benefited from data-center demand and production ramps from shorter-cycle Process of Record (POR) wins secured during 2025.
Management also highlighted new business wins with AI PCB manufacturers serving leading hyperscalers and premium smartphone OEMs, while increasing thermal management requirements continue to drive higher content per device. ICS generated an adjusted operating EBITDA margin of 28.5%, reflecting strong operating leverage and favorable product mix. However, Qnity faces several near-term challenges despite solid execution. Growth remains sensitive to customer inventory cycles, with recent semiconductor restocking benefits unlikely to persist.
Qnity Electronics’ cash flow is under pressure as elevated capital spending and IT separation investments reduce free cash flow and limit buybacks and deleveraging. Additionally, high debt raises interest costs, and significant China exposure leaves the company vulnerable to geopolitical and trade-related disruptions. The Zacks Consensus Estimate for Qnity’s 2026 earnings is pegged at $4.16, implying year-over-year growth of 24%. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
AMAT vs. Q: Price Performance & Valuation CheckQnity shares have risen 69.8% year to date, while Applied Materials has soared 123.9%.
YTD Performance Chart
Image Source: Zacks Investment Research
On the valuation front, Applied Materials trades at a forward 12-month price-to-sales (P/S) multiple of 11.20X, above its median of 9.29X, while Qnity Electronics trades at a P/S multiple of 5.11X, below its median of 5.29X.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: Which Stock is a Safer Bet?Applied Materials appears to be the safer long-term investment. Its unmatched portfolio across semiconductor manufacturing equipment, expanding AI-driven advanced packaging opportunities, higher expected earnings growth, and robust high-margin services business provide greater visibility and resilience. While Qnity Electronics offers an attractive valuation and strong exposure to advanced packaging materials, its near-term outlook is tempered by customer inventory sensitivity, elevated capital spending, higher leverage and China-related risks. Investors seeking a balanced combination of growth, profitability and execution may find Applied Materials better positioned to capitalize on the AI semiconductor investment cycle.
AMAT and Q carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alesco Advisors LLC nově ve 1. čtvrtletí koupila 2 884 akcií Applied Materials za zhruba 986 000 USD. Institucionální investoři drží 80,56 % akcií společnosti.
Alesco Advisors LLC An ESL Co acquired a new position in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm acquired 2,884 shares of the manufacturing equipment provider’s stock, valued at approximately $986,000.
Other institutional investors and hedge funds also recently made changes to their positions in the company. Insight Advisors LLC PA acquired a new position in Applied Materials during the 1st quarter worth approximately $253,000. Saturna Capital Corp grew its stake in Applied Materials by 34.2% in the first quarter. Saturna Capital Corp now owns 1,590 shares of the manufacturing equipment provider’s stock valued at $543,000 after acquiring an additional 405 shares during the period. Danica Pension Livsforsikringsaktieselskab increased its holdings in shares of Applied Materials by 0.7% during the first quarter. Danica Pension Livsforsikringsaktieselskab now owns 78,906 shares of the manufacturing equipment provider’s stock valued at $26,969,000 after acquiring an additional 576 shares in the last quarter. ABN Amro Investment Solutions raised its position in shares of Applied Materials by 33.3% during the first quarter. ABN Amro Investment Solutions now owns 438,392 shares of the manufacturing equipment provider’s stock worth $149,838,000 after purchasing an additional 109,506 shares during the period. Finally, PNC Financial Services Group Inc. grew its position in Applied Materials by 13.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 567,604 shares of the manufacturing equipment provider’s stock valued at $194,001,000 after purchasing an additional 69,366 shares during the period. Institutional investors own 80.56% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts have weighed in on AMAT shares. Wolfe Research raised their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the company an “outperform” rating in a research note on Friday, May 15th. Mizuho increased their price target on Applied Materials from $540.00 to $650.00 and gave the company an “outperform” rating in a research report on Wednesday, July 8th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a report on Wednesday, June 24th. Susquehanna upped their target price on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a report on Tuesday, June 30th. Finally, Sanford C. Bernstein reiterated an “outperform” rating and set a $525.00 price target on shares of Applied Materials in a report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and a consensus target price of $593.84.
Read Our Latest Research Report on AMAT
Insider Activity In other news, SVP Timothy M. Deane sold 8,621 shares of Applied Materials stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the completion of the sale, the senior vice president owned 134,631 shares in the company, valued at approximately $79,534,609.56. This trade represents a 6.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Omkaram Nalamasu sold 24,263 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the transaction, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. The trade was a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 278,088 shares of company stock worth $169,654,805. Company insiders own 0.30% of the company’s stock.
Key Applied Materials News Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Peer Taiwan Semiconductor Manufacturing announced plans to raise chipmaking prices by up to 10% in 2027, while wafer supplier IQE lifted guidance, reinforcing expectations for strong AI and data-center chip demand and more equipment spending across the semiconductor supply chain. Why Applied Materials (AMAT) Stock Is Up Today Positive Sentiment: Applied Materials’ installed base services business appears to be a growing recurring-revenue engine, with Applied Global Services revenue rising to $1.665 billion from $1.42 billion a year earlier as fab utilization improves. Is AMAT’s Installed Base Business Built for Long-Term Growth? Positive Sentiment: Industry commentary continues to point to AI-driven semiconductor growth as a tailwind for AMAT, with analysts highlighting the company as a beneficiary of sustained demand for advanced chips and manufacturing equipment. 3 Stocks to Buy From the Prospering Semiconductor Industry Neutral Sentiment: Applied Materials also joined CuspAI’s AI Materials Foundry as a founding member, a strategic move that could support long-term materials discovery efforts, though it is not an immediate earnings catalyst. Applied Materials (AMAT) Joins CuspAI Foundry To Speed Semiconductor Materials Discovery Negative Sentiment: Some market commentary flagged seasonal weakness for AMAT heading into late July, which could temper momentum if investors focus on near-term trading patterns. Three Stocks Just Flashed Seasonal Signals Applied Materials Stock Performance NASDAQ:AMAT opened at $564.55 on Wednesday. The business’s fifty day moving average is $537.43 and its 200 day moving average is $418.14. The firm has a market cap of $448.23 billion, a price-to-earnings ratio of 53.01, a PEG ratio of 1.34 and a beta of 1.57. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. Applied Materials, Inc. has a 52-week low of $154.46 and a 52-week high of $739.67.
Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same period last year, the business earned $2.39 earnings per share. Applied Materials’s revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Research analysts predict that Applied Materials, Inc. will post 12.14 EPS for the current year.
Applied Materials Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.53 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 19.91%.
Applied Materials Company Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Further Reading Five stocks we like better than Applied Materials Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding AMAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Materials, Inc. (NASDAQ:AMAT – Free Report).
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Divize Arvest Bank Trust v 1. čtvrtletí snížila podíl v Applied Materials o 39,3 % a prodala 14 870 akcií. Po prodeji držela 22 931 akcií v hodnotě 7,838 milionu USD.
Arvest Bank Trust Division cut its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 39.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 22,931 shares of the manufacturing equipment provider’s stock after selling 14,870 shares during the period. Arvest Bank Trust Division’s holdings in Applied Materials were worth $7,838,000 at the end of the most recent quarter.
Other large investors have also recently added to or reduced their stakes in the company. Evolve Private Wealth LLC grew its holdings in shares of Applied Materials by 59.0% in the first quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider’s stock valued at $983,000 after acquiring an additional 1,067 shares in the last quarter. Worth Asset Management LLC bought a new stake in shares of Applied Materials in the fourth quarter valued at $1,531,000. World Investment Advisors raised its stake in Applied Materials by 4.5% in the 4th quarter. World Investment Advisors now owns 82,296 shares of the manufacturing equipment provider’s stock valued at $21,149,000 after acquiring an additional 3,508 shares during the period. WealthPlan Investment Management LLC bought a new stake in Applied Materials in the 4th quarter valued at about $1,082,000. Finally, Baker Chad R lifted its holdings in Applied Materials by 76.6% during the fourth quarter. Baker Chad R now owns 16,530 shares of the manufacturing equipment provider’s stock valued at $4,297,000 after purchasing an additional 7,170 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.
Trending Headlines about Applied Materials Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Peer Taiwan Semiconductor Manufacturing announced plans to raise chipmaking prices by up to 10% in 2027, while wafer supplier IQE lifted guidance, reinforcing expectations for strong AI and data-center chip demand and more equipment spending across the semiconductor supply chain. Why Applied Materials (AMAT) Stock Is Up Today Positive Sentiment: Applied Materials’ installed base services business appears to be a growing recurring-revenue engine, with Applied Global Services revenue rising to $1.665 billion from $1.42 billion a year earlier as fab utilization improves. Is AMAT’s Installed Base Business Built for Long-Term Growth? Positive Sentiment: Industry commentary continues to point to AI-driven semiconductor growth as a tailwind for AMAT, with analysts highlighting the company as a beneficiary of sustained demand for advanced chips and manufacturing equipment. 3 Stocks to Buy From the Prospering Semiconductor Industry Neutral Sentiment: Applied Materials also joined CuspAI’s AI Materials Foundry as a founding member, a strategic move that could support long-term materials discovery efforts, though it is not an immediate earnings catalyst. Applied Materials (AMAT) Joins CuspAI Foundry To Speed Semiconductor Materials Discovery Negative Sentiment: Some market commentary flagged seasonal weakness for AMAT heading into late July, which could temper momentum if investors focus on near-term trading patterns. Three Stocks Just Flashed Seasonal Signals Wall Street Analysts Forecast Growth AMAT has been the subject of several recent research reports. Cantor Fitzgerald lifted their target price on shares of Applied Materials from $650.00 to $850.00 and gave the stock an “overweight” rating in a research note on Monday, June 29th. Barclays lifted their target price on Applied Materials from $500.00 to $590.00 and gave the company an “overweight” rating in a report on Thursday, June 11th. Royal Bank Of Canada boosted their price target on shares of Applied Materials from $500.00 to $520.00 and gave the company an “outperform” rating in a research report on Friday, May 15th. Zacks Research upgraded Applied Materials from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 1st. Finally, Wolfe Research boosted their price objective on Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $593.84.
Check Out Our Latest Report on Applied Materials
Insider Activity In other Applied Materials news, insider Prabu G. Raja sold 10,000 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $633.53, for a total value of $6,335,300.00. Following the completion of the transaction, the insider owned 346,642 shares in the company, valued at approximately $219,608,106.26. This represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Thomas J. Iannotti sold 9,250 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $599.77, for a total value of $5,547,872.50. Following the transaction, the director directly owned 40,559 shares of the company’s stock, valued at $24,326,071.43. This represents a 18.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is owned by company insiders.
Applied Materials Price Performance AMAT opened at $564.55 on Wednesday. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock’s 50 day simple moving average is $537.43 and its 200 day simple moving average is $418.14. The firm has a market cap of $448.23 billion, a price-to-earnings ratio of 53.01, a PEG ratio of 1.34 and a beta of 1.57. Applied Materials, Inc. has a 1 year low of $154.46 and a 1 year high of $739.67.
Applied Materials (NASDAQ:AMAT – Get Free Report) last released its quarterly earnings data on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the prior year, the firm posted $2.39 earnings per share. The business’s quarterly revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, analysts predict that Applied Materials, Inc. will post 12.14 earnings per share for the current year.
Applied Materials Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio (DPR) is currently 19.91%.
Applied Materials Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
See Also Five stocks we like better than Applied Materials Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
Applied Materials oznámila, že výnosy AGS vzrostly na 1,665 mld. USD z 1,42 mld. USD před rokem díky vyššímu využití fabů. Firma čeká, že AGS poroste středním tempem v nižších až středních desítkách procent.
Key Takeaways Applied Materials' AGS revenues rose to $1.665B as higher fab utilization boosted recurring services.AMAT expects AGS to sustain mid-teens annual growth as revenue per installed tool continues to expand.AMAT has connected more than 35,000 chambers to AIx software for AI-powered monitoring and analytics. Applied Materials’ (AMAT - Free Report) large installed base has turned into a recurring revenue engine. Applied Global Services (AGS), under which the servicing of installed bases is reported, has generated $1.665 billion in revenues, up from $1.42 billion a year earlier, reflecting higher fab utilization.
AGS’ gross margin improved to 34.7% and its operating margin rose to 29.2%. The strategic value of AGS is that it adds resilience to Applied Materials’ profit model. Unlike the more cyclical equipment business, services are tied to a growing installed base and to customer needs throughout the tool lifecycle.
Management said AGS is another important growth driver because Applied Materials increases the revenue it generates “per tool” on top of a growing installed base. AMAT expects the AGS segment to deliver a sustainable annual growth rate in the mid-teens, potentially higher this year. That makes AGS an important bridge between one-time equipment sales and long-duration customer relationships.
What makes AGS especially relevant in the AI era is the company’s AI-enabled service layer. Applied Materials said that more than 35,000 chambers are connected to its AIx software capabilities, which use AI-powered monitoring, diagnostics and analytics. This matters because Applied Materials’ broader AI and advanced-node strategy depends on execution, visibility and support after installation.
In that setting, AGS helps stabilize Applied Materials’ revenue base, deepen customer relationships and improve operating leverage as the company scales. The segment’s margin profile, recurring nature and AI-driven service enhancements make it a valuable part of Applied Materials’ long-term earnings power.
How Competitors Fare Against AMATSince AMAT serves its own installed base through the AGS business, there are no competitors in this segment. But in the broader product category, AMAT competes with Lam Research (LRCX - Free Report) and ASML Holding (ASML - Free Report) .
ASML is experiencing strong demand from DRAM and logic customers, which are ramping up leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps shorten cycle time and lower costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and Lam Research, making the stock worth holding.
Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 104.5% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 27.4%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 12.81X, higher than the industry’s average of 10.48X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 29% and 34%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward over the past seven days.
Image Source: Zacks Investment Research
Applied Materials currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Common Asset Management zvýšil v 1. čtvrtletí podíl ve společnosti Applied Materials o 138,8 % na 46 362 akcií. Hodnota pozice činila 15,846 milionu USD.
Boston Common Asset Management LLC increased its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 138.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 46,362 shares of the manufacturing equipment provider’s stock after buying an additional 26,945 shares during the quarter. Boston Common Asset Management LLC’s holdings in Applied Materials were worth $15,846,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also bought and sold shares of the stock. Financial Freedom LLC bought a new position in Applied Materials during the 1st quarter valued at $28,000. Cornerstone Financial Management LLC bought a new stake in shares of Applied Materials in the 4th quarter worth $25,000. Whipplewood Advisors LLC grew its stake in shares of Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider’s stock worth $35,000 after acquiring an additional 70 shares in the last quarter. Wilkerson Advisory Group LLC purchased a new stake in shares of Applied Materials in the fourth quarter valued at about $26,000. Finally, MBM Wealth Consultants LLC purchased a new stake in shares of Applied Materials in the first quarter valued at about $38,000. 80.56% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In Several research analysts recently weighed in on AMAT shares. Truist Financial set a $575.00 price target on shares of Applied Materials in a report on Thursday, May 28th. Morgan Stanley upped their price objective on shares of Applied Materials from $502.00 to $647.00 and gave the stock an “equal weight” rating in a research report on Monday, July 6th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $525.00 price objective on shares of Applied Materials in a research note on Friday, May 15th. JPMorgan Chase & Co. lifted their target price on shares of Applied Materials from $400.00 to $515.00 and gave the stock an “overweight” rating in a research report on Friday, May 15th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Applied Materials in a report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $593.84.
Check Out Our Latest Research Report on AMAT
Trending Headlines about Applied Materials Here are the key news stories impacting Applied Materials this week:
Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 earnings estimates for Applied Materials and reiterated a Buy rating, signaling confidence in the company’s growth outlook and AI-driven demand. Article link Positive Sentiment: Applied Materials CEO comments reinforcing the AI investment thesis may help support longer-term sentiment around the stock. Article link Neutral Sentiment: Zacks noted that AMAT has been drawing increased attention from investors, but the piece was mainly a stock-screening update rather than a new fundamental catalyst. Article link Neutral Sentiment: Recent commentary suggested Applied Materials may be trading above fair value after a strong multi-year run, which could limit upside even if earnings remain solid. Article link Negative Sentiment: A broad semiconductor selloff is pressuring AMAT along with peers like AMD and Intel, as the market rotates out of chip stocks and into other areas. Article link Applied Materials Price Performance Shares of NASDAQ:AMAT opened at $529.66 on Monday. The company’s 50-day moving average is $533.12 and its 200 day moving average is $414.11. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.80 and a current ratio of 2.51. The company has a market capitalization of $420.53 billion, a P/E ratio of 49.73, a price-to-earnings-growth ratio of 1.35 and a beta of 1.57. Applied Materials, Inc. has a fifty-two week low of $154.46 and a fifty-two week high of $739.67.
Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter in the prior year, the business earned $2.39 earnings per share. The firm’s revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts forecast that Applied Materials, Inc. will post 12.14 earnings per share for the current year.
Applied Materials Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Thursday, August 20th. Applied Materials’s dividend payout ratio is currently 19.91%.
Insider Activity In other news, CEO Gary E. Dickerson sold 71,727 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total transaction of $42,587,906.25. Following the completion of the sale, the chief executive officer owned 1,695,164 shares in the company, valued at $1,006,503,625. This trade represents a 4.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $593.43, for a total transaction of $14,398,392.09. Following the completion of the sale, the senior vice president directly owned 146,916 shares in the company, valued at $87,184,361.88. This trade represents a 14.17% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 278,088 shares of company stock worth $169,654,805. 0.30% of the stock is owned by insiders.
Applied Materials Profile (Free Report)
Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.
Applied Materials’ offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.
Recommended Stories Five stocks we like better than Applied Materials Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Shopify’s Quiet AI Strategy Could Be Its Biggest Advantage Yet Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises 3 Aerospace Suppliers That Could Benefit as Aircraft Makers Face Bottlenecks
Receive News & Ratings for Applied Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Materials and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINERalph Lauren Corporation $RL Shares Sold by Boston Common Asset Management LLC
NEXT HEADLINE »Boston Common Asset Management LLC Invests $7.50 Million in eBay Inc. $EBAY
Applied Materials vykázala ve 2. čtvrtletí fiskálního roku 2026 tržby 7,91 mld. USD a zvýšila výhled růstu trhu s polovodičovým vybavením v kalendářním roce 2026 na více než 30 %. KLA ve 3. čtvrtletí fiskálního roku 2026 utržila 3,415 mld. USD a obě firmy překonaly odhady.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Applied Materials (NASDAQ: AMAT | AMAT Price Prediction) and KLA (NASDAQ: KLAC) both closed strong quarters tied to AI infrastructure buildout. Applied posted Q2 FY2026 revenue of $7.91 billion on May 14, 2026. KLA reported Q3 FY2026 revenue of $3.415 billion on April 29, 2026. Both beat consensus. Their playbooks look nothing alike.
AI Fab Tools Lift One. Inspection Dominance Lifts the Other. Applied’s Semiconductor Systems segment delivered $5.965 billion at a 35.1% operating margin, up from 32.8%. DRAM mix moved to 29% of that segment, reflecting real HBM pull. CEO Gary Dickerson told investors Applied delivered “record quarterly performance” and now expects the semi equipment business to grow more than 30% in calendar 2026, raised from an earlier 20% call. That is a rare mid-cycle upgrade.
KLA’s story is narrower and richer. Process Control brought in $3.083 billion, roughly 90% of revenue, at a non-GAAP gross margin guide of 61.75% for June. Rick Wallace flagged “continued market share momentum in process control” backed by third-party industry data. Fewer product lines, harder moat.
Business Driver AMAT KLA Main revenue engine Semi Systems $5.965B Process Control $3.083B YoY revenue growth 11.4% 11.5% China revenue share 27% Meaningful, more insulated per analysts Breadth Play vs. Specialist Fortress Applied is widening the net. New Gate-All-Around tools like Precision Selective Nitride PECVD and Trillium ALD, the agreement to acquire ASMPT’s NEXX business for panel-level advanced packaging, and EPIC Center partnerships with TSMC, SK hynix, Micron and Samsung keep Applied embedded in every atomic-layer transition. This makes AMAT the more comprehensive AI manufacturing play, capturing raw physical volume of global foundry expansion.
KLA leans harder on one dominant niche. Inspection and metrology carry structurally higher margins, and Barclays upgraded KLAC to Overweight citing relative insulation from China export controls. The tradeoff: KLA’s diagnostic business is sensitive to wafer-start fluctuations.
The Next Test Is Cash and China Applied’s free cash flow fell to $210 million, down 80.21% YoY on working capital consumption. KLA’s FCF also softened to $622 million, off 36.97%, but the absolute figure remains healthier. Watch whether Applied converts its Q3 revenue guide of roughly $8.95 billion into cash, and whether KLA hits its $3.575 billion June-quarter target.
Why I Lean Toward Applied Materials Right Now AMAT is the sharper AI-infrastructure vehicle today. The 30%+ calendar 2026 equipment growth call, GAA tool ramp, and HBM exposure line up with where fab spending is going. KLA remains a beautiful business, and its 17th consecutive dividend increase plus a fresh $7 billion buyback authorization reward patient holders. For direct leverage to physical AI capacity coming online, Applied offers the clearest exposure. That thesis weakens if China restrictions tighten materially or if Applied’s cash conversion stays weak past one more quarter.
Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.
From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.
Boom umělé inteligence pokračuje: Micron Technology, Applied Materials a Cisco Systems posilují nabídku i infrastrukturu pro umělou inteligenci a Cisco navíc zvýšila výhled na tržby pro rok 2026 na 62,8–63,0 miliardy USD.
Key Takeaways MU expanded its AI memory and storage portfolio for training and inference workloads.AMAT introduced new AI chip manufacturing systems for DRAM and advanced packaging.CSCO raised 2026 revenue guidance on AI infrastructure demand and expanded its NVIDIA partnership. Technology stocks have been taking a beating lately. However, the information technology sector has outperformed its peers and has primarily been responsible for the broader market rally over the past three years.
Artificial intelligence (AI), especially generative AI, stocks have emerged as the industry’s darling as their widespread adoption has been boosting Wall Street. The space is poised to get a further boost with the advent of agentic AI, while tech companies continue to pump billions of dollars into AI infrastructure.
Needless to say, the AI boom is far from over, and there’s still a lot of room to play, as the recent decline appears to be temporary. We have identified three AI-driven stocks that are poised to excel in the second half of 2026.
These three stocks are Micron Technology, Inc (MU - Free Report) , Applied Materials, Inc. (AMAT - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Each of our picks currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron TechnologyMicron Technology, through its global brands, namely Micron, Crucial and Ballistix, markets high-performance memory and storage technologies, including Dynamic Random Access Memory (DRAM), NAND flash memory, NOR Flash and other technologies. The company’s solutions are used in leading-edge computing, consumer, networking, mobile, automotive, industrial and data center products.
Micron Technology recently announced that it has reached a deal with Anthropic to co-design next-generation AI memory and storage architectures. The strategic partnership includes a long-term supply arrangement, Micron's investment in Anthropic's Series H funding round and deployment of Claude AI across Micron's engineering and manufacturing operations.
The company also recently launched its expanded portfolio of AI-optimized memory and storage products, which includes HBM4, a 256GB SOCAMM2 module, 256GB DDR5 RDIMMs, and the 245TB Micron 6600 ION SSD. The new range of products is aimed at boosting AI training and inference workloads from data centers to edge devices.
The company’s third-quarter fiscal 2026 revenue outlook of around $33.5 billion reflects strong AI infrastructure spending.
Moreover, Micron has a debt-to-equity ratio of 5.1%, which is lower than the Computer - Integrated System industry’s 36.8%. The company’s ROE stands at 72.4% compared to the sub-industry’s 22.1%. The company has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year and next-quarter earnings has improved 26.1% and 46.3%, respectively, over the last 60 days.
Applied Materials, Inc.Applied Materials is a leading supplier of equipment used to manufacture semiconductor devices, flat panel displays and solar photovoltaic products. Applied Materials has given a boost to its AI semiconductor development through innovations in materials engineering, advanced packaging, and memory technologies.
The company earlier this year introduced new deposition, etch, and materials-modification systems to boost next-generation AI chips, including 2nm-and-beyond logic technologies. Applied Materials has also announced the acquisition of NEXX in a bid to expand its advanced packaging capabilities. The technology will help larger AI accelerator designs using chiplets, HBM stacks, and advanced substrates, giving more powerful AI systems.
Last month, Applied Materials introduced new semiconductor manufacturing systems that are focused on DRAM and advanced packaging for AI chips. These will allow higher-yield HBM stacking and improved AI accelerator performance.
The Zacks Rank #1 company has a debt-to-equity ratio of 22%, which is lower than the Electronics-Semiconductors industry’s 66.3%. The company’s ROE stands at 37% compared to the sub-industry’s 35.2%. The company has an expected earnings growth rate of 28.8% for the current year. The Zacks Consensus Estimate for current-year and next-quarter earnings has improved 8.7% and 8.6%, respectively, over the last 60 days.
Cisco Systems, Inc.Cisco Systems has given a boost to its AI strategy by developing secure, high-performance networking infrastructure for the AI era. Last year, the Zacks Rank #1 company expanded its partnership with NVIDIA Corporation (NVDA - Free Report) , combining Cisco Silicon One networking technology with NVIDIA Spectrum-X to come up with AI-ready data center architectures.
Cisco also launched the Cisco Secure AI Factory with NVIDIA, integrating networking, security, and AI infrastructure solutions to simplify enterprise AI deployment. Earlier, Cisco introduced AI-ready data center innovations, including AI PODs, Unified Nexus Dashboard improvements and Spectrum-X integration.
Cisco Systems raised its 2026 revenue guidance to $62.8-$63.0 billion, driven by solid demand for AI data-center infrastructure and massive cloud-provider orders.
Cisco has a debt-to-equity ratio of 39.6%, which is lower than the Computer-Networking industry’s 44.7%%. The company’s ROE stands at 34.3% compared to the sub-industry’s 27.9%. The company has an expected earnings growth rate of 12.3% for the current year. The Zacks Consensus Estimate for current-year and next-quarter earnings has improved 2.6% and 5.5%, respectively, over the last 60 days.
Akcie Applied Materials vzrostly téměř o 7 % poté, co zprávy o plánu Meta vyrábět vlastní AI čip podpořily celý sektor polovodičů. Lam Research a KLA přidaly více než 6 %.
Applied Materials Inc. shares AMAT climbed nearly 7% on Thursday as semiconductor stocks rallied after reports that Meta Platforms plans to begin manufacturing its in-house artificial intelligence chip in September, boosting optimism around demand for wafer fabrication equipment and AI infrastructure.
The broader semiconductor rally also lifted Lam Research and KLA Corp., while optical networking company Lumentum led gains in the S&P 500.
Applied Materials gained nearly 7%, while Lam Research and KLA rose more than 6% as investors reacted to reports that Meta expects to begin work on its AI data-center chip, codenamed "Iris," using custom-built silicon. Reuters first reported the development.
The move was viewed as a positive development for companies supplying wafer fabrication equipment used to convert raw silicon wafers into microchips.
The rally comes as expectations continue to build around rising capital expenditure by hyperscale technology companies.
According to Citi, the wafer fabrication equipment market is expected to grow from about $145 billion this year to $200 billion in 2027 and $250 billion in 2028.
The brokerage also forecasts hyperscaler spending to increase 84% this year, 56% in 2027 and 38% in 2028.
Amazon, Microsoft, Alphabet, Meta Platforms and Oracle are expected to spend more than $1.1 trillion in 2027, up from $650 billion this year.
Brokerages also turned more optimistic on semiconductor equipment makers.
Mizuho Securities raised its price target on Applied Materials to $650 from $540 while maintaining its Outperform rating. It also increased its target on Lam Research to $400 from $380.
TD Cowen lifted its price target on Applied Materials to $700 from $525 while maintaining its rating on the stock.
The brokerage models wafer fabrication equipment spending reaching $250 billion in 2028 and potentially $400 billion by 2030, supported by stronger industry profitability and demand backed by take-or-pay agreements.
Under its $250 billion scenario, TD Cowen estimates Applied Materials could generate earnings of about $25 per share, compared with its calendar 2026 estimate of $13.35.
Lam Research could earn between $11 and $12 per share, while KLA could generate $9 to $10 per share.
The firm said Applied Materials would be the biggest beneficiary under that scenario, followed by KLA because of their exposure to leading-edge semiconductor manufacturing and DRAM investment.
Investor sentiment also received support from comments by Applied Materials CEO Gary Dickerson.
In an interview with Nikkei Asia, Dickerson said Applied Materials has “tremendous visibility” into customer demand over the next 24 months.
He added that chipmakers are providing equipment demand forecasts at least two years in advance, giving the company confidence that the AI-driven semiconductor investment cycle still has years to run.
AMAT Technicals Applied Materials continues to trade above its 20-day, 50-day and 200-day simple moving averages.
Its relative strength index stands at 53.70, a neutral reading, while traders are watching the 20-day moving average near $503 as the first support level and the 52-week high near $739.67 as the next major resistance.
Applied Materials čeká, že tržby z advanced packaging v kalendářním roce 2026 vzrostou o více než 50 %. Pohání je poptávka po AI a nedostatek paměťových čipů v datacentrech.
Key Takeaways Applied Materials expects advanced packaging revenues to grow more than 50% in calendar 2026.AI demand and supply-constrained data center memory give AMAT an edge through 2026 and 2027.The NEXX acquisition and EPIC Center collaboration strengthen Applied Materials' packaging strategy. Applied Materials’ (AMAT - Free Report) advanced packaging has emerged as a major growth engine as the rapid build-out of AI computing infrastructure increases the need for higher system performance, power efficiency and cost optimization. In the advanced packaging space, AMAT has strong positions in high-bandwidth memory and 3D chiplet stacking. The company is well-positioned for upcoming packaging inflections.
AMAT is expected to gain tremendously as the data center memory space remains among the most supply-constrained markets amid the massive demand. The eventual ramp-up of memory chip production gives AMAT an edge throughout 2026 and 2027 as it is one of the leading process equipment suppliers in advanced packaging. The company expects its packaging revenues to grow more than 50% in 2026.
Applied Materials’ advanced packaging, alongside leading-edge foundry-logic and DRAM, are one of the three markets with the greatest impact on AI computing. Together, these areas are expected to account for more than 80% of year-over-year wafer fab equipment spending growth in 2026, with a similar profile expected in 2027.
AMAT already offers what it describes as the industry’s broadest portfolio for the emerging panel trend, spanning chemical vapor deposition, etch, physical vapor deposition, digital lithography, electrochemical deposition, and e-beam metrology and test. Now it plans to strengthen this portfolio through its acquisition of the NEXX business from ASMPT.
The combined portfolio of NEXX and AMAT is designed to help chipmakers and systems companies build larger AI accelerators with higher energy-efficient performance. Collaboration is another important element of Applied Materials’ packaging strategy. Through the EPIC Center, AMAT and SK hynix plan to work on next-generation DRAM, HBM and 3D advanced packaging. These factors establish AMAT at a sweet spot in the packaging business.
How Competitors Fare Against AMATAMAT’s broad portfolio positions the company to capture a larger share of customer spending as semiconductor manufacturing becomes increasingly materials-intensive while also keeping its competitors like Lam Research (LRCX - Free Report) and Camtek (CAMT - Free Report) at bay. The breadth of Applied Materials' portfolio also reduces its dependence on any single semiconductor technology cycle and supports stronger pricing power.
Camtek focuses on semiconductor inspection, metrology, advanced packaging and high-performance computing applications. Lam Research competes with Applied Materials across deposition and etch technologies, including advanced atomic layer deposition systems used in leading-edge semiconductor manufacturing.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 115.7% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 40.4%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 11.26X, higher than the industry’s average of 8.77X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 28% and 32%, respectively. The estimates for fiscal 2026 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
Applied Materials currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials oznámila rekordní tržby 7,91 miliardy USD ve fiskálním 2. čtvrtletí, meziročně o 11 % více, a zisk na akcii vzrostl o 20 % na rekordních 2,86 USD. Firma zároveň čeká, že její podnikání v oblasti zařízení pro výrobu polovodičů v roce 2026 poroste o více než 30 %.
Key Takeaways AMAT surged 283.7% from its 52-week low, while fiscal second-quarter revenues hit a record.AMAT expects its semiconductor equipment business to grow more than 30% in calendar 2026.AMAT returned $765 million to shareholders while funding capacity and supply-chain investments. Applied Materials (AMAT - Free Report) stock’s 52-week low was recorded at $154.47 on Sept. 3, 2025. Since then, AMAT stock has climbed 283.7%. Year to date, AMAT stock has surged 130.6%, outperforming the Zacks Electronics - Semiconductors industry’s growth of 42.7%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
The massive rise in the stock price has made AMAT trade at a premium. Currently, Applied Materials has a price-to-sales (P/S) multiple of 12.06X, which is much above the industry’s P/S of 8.93X. AMAT’s value score of D also suggests its overvaluation.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Given the rise in share price and valuation combination, investors might ask: Should they buy, sell or hold the stock? Let’s discuss the fundamentals in detail.
AMAT Gains From Traction Across its Broad Product PortfolioApplied Materials has an unmatched breadth across semiconductor manufacturing. Applied Materials offers solutions across deposition, materials engineering, etch, metrology, inspection, packaging and process integration, allowing customers to optimize manufacturing flows using a single vendor across multiple stages of production. AMAT’s semiconductor systems segment delivered record revenues of $5.97 billion during the second quarter of fiscal 2026, representing 10% year-over-year growth and 16% sequential growth.
Revenue composition further highlights the shift toward AI-driven semiconductor investment. Foundry, logic and other applications contributed 67% of segment revenue, DRAM accounted for 29%, and flash memory represented just 4%. The higher contribution from foundry-logic and DRAM is increasingly driving demand for leading-edge logic chips, high-bandwidth memory, and advanced packaging technologies.
Management believes that leading-edge foundry-logic, DRAM and advanced packaging will account for more than 80% of the year-over-year growth in wafer fabrication equipment spending during 2026. In the second quarter of fiscal 2026, AGS generated $1.665 billion of revenues, up from $1.42 billion a year earlier, while its gross margin improved to 34.7% and its operating margin rose to 29.2%.
AMAT’s broad portfolio positions the company to capture a larger share of customer spending as semiconductor manufacturing becomes increasingly materials-intensive while also keeping its competitors like KLA Corporation (KLAC - Free Report) , Lam Research (LRCX - Free Report) and Camtek (CAMT - Free Report) at bay. The breadth of Applied Materials' portfolio also reduces its dependence on any single semiconductor technology cycle and supports stronger pricing power.
KLA Corporation remains a dominant player in process control, wafer inspection and yield management solutions, while Camtek focuses on semiconductor inspection, metrology, advanced packaging and high-performance computing applications. Lam Research competes with Applied Materials across deposition and etch technologies, including advanced atomic layer deposition systems used in leading-edge semiconductor manufacturing.
AMAT’s CapEx Spend & AI Demand Signal Future Cash Flow StrengthIn the second quarter of fiscal 2026, AMAT’s operating cash flow declined to $845 million from $1.686 billion in the prior quarter, and free cash flow decreased to $210 million from $1.04 billion in the prior quarter. AMAT’s expanding manufacturing capacity and strengthening supply chain readiness can be a probable reason.
AMAT is investing in building plans, inventory positions and logistics capacity to ensure that it can meet accelerating customer demand. Customers are providing longer-term demand forecasts, allowing Applied Materials to prepare manufacturing resources well in advance and support expected industry growth through 2027 and beyond.
The company also expects its semiconductor equipment business to grow more than 30% in 2026 as customers expand cleanroom capacity and accelerate equipment pull-ins. This demand mix aligns with Applied Materials’ stated leadership positions and supports a more durable multi-year spending cycle than prior compute-driven upturns, suggesting future cash flow strength.
Beyond all these, Applied Materials’ ability to generate sufficient cash to return capital to shareholders is a green flag. During the second quarter of fiscal 2026, Applied Materials distributed $765 million through $400 million of share repurchases and $365 million in dividends while simultaneously funding investments in production capacity and supply chain capabilities.
The favorable mix shift toward AI-driven markets is already translating into stronger financial performance. Applied Materials reported record fiscal second-quarter 2026 revenues of $7.91 billion, up 11% year over year, while non-GAAP earnings per share increased 20% to a record $2.86. The Zacks Consensus Estimate for fiscal 2026 earnings currently implies growth of 29%. The estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Conclusion: Buy AMAT Stock NowAMAT’s broad portfolio, rising AI-driven WFE demand, expanding semiconductor equipment business and investments in manufacturing capacity support further growth. Strong earnings momentum, upward estimate revisions and continued shareholder returns reinforce the bullish case. Therefore, investors should consider buying AMAT stock for long-term growth potential. Given these factors, we suggest that investors should accumulate this Zacks Rank #1 (Strong Buy) stock at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials ve 2. čtvrtletí zvýšil tržby o 11 % a očekává nejméně 30% růst tržeb polovodičové divize v kalendářním roce 2026. Firma zároveň oznámila dohody s TSMC, Micron a SK Hynix.
Nvidia and Micron Technology have drawn significant investor attention as they power AI infrastructure, but savvy investors may also want to turn some of that attention to Applied Materials (AMAT 7.82%). Applied Materials doesn't make chips, but it designs vital equipment that chipmakers use to create their chips.
In short, Applied Materials is an enabler of chipmakers, but that's not the only thing you need to know when deciding if the stock is a good buying opportunity.
Image source: Getty Images.
A star-studded customer list Applied Materials isn't the only company that produces equipment chipmakers need to create their chips, but it is the largest semiconductor equipment provider in the U.S.
The company's fiscal 2026 second-quarter results highlighted several customer partnerships that suggest accelerated revenue growth is on the way. In its release, Applied Materials mentioned agreements and partnerships with Taiwan Semiconductor Manufacturing, Micron, and SK Hynix. All of these companies have been working together for years, and the parabolic revenue growth they are seeing should translate into higher revenue growth for Applied Materials.
The company delivered 11% year-over-year revenue growth in its fiscal 2026 second quarter, which ended April 26, but it expects at least 30% revenue growth for its semiconductor business in calendar 2026. Semiconductor revenue made up $5.965 billion of the company's $7.91 billion of its second-quarter revenue, which comes to 75% of total revenue.
That segment only had 10.4% year-over-year revenue growth in the quarter, so guidance for 30% revenue growth throughout calendar 2026 implies substantial acceleration in upcoming quarters.
Today's Change
(
-7.82
%) $
-50.89
Current Price
$
600.02
Applied Materials has an elevated valuation Not every investor is waiting around for Applied Materials to deliver at least 30% revenue growth in calendar 2026. The stock has more than doubled year to date, resulting in a P/E ratio that soared from the mid-teens just a year ago to over 50 right now.
While the current valuation leaves a lower margin of safety, Applied Materials can fit nicely into its new valuation if it delivers on guidance. The company's guidance for 30% revenue growth for its semiconductor segment in calendar 2026 does not mean it will maintain a 30% revenue growth rate for the rest of the year.
Applied Materials has to achieve 40% to 50% revenue growth in future quarters to offset an 11% year-over-year revenue jump in its Q2. The company has maintained high net profit margins, reaching 35.5% in the most recent quarter, so net income should meaningfully advance in calendar 2026.
Applied Materials' fundamentals are set to strengthen thanks to a multiyear AI supercycle. That can address the valuation and make it more attractive in the near future. Investors who buy now, anticipating what the company can become, may be making a wise decision.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Applied Materials vystřelila na nové historické maximum 739 USD a od začátku roku přidává téměř 200 %. Růst táhne optimismus kolem výdajů na AI infrastrukturu a výrobu čipů.
Applied Materials (AMAT - Free Report) ) has been one of the hottest stocks in the tech sector, climbing to fresh all-time highs of $739 a share in Tuesday’s trading session, and has now rallied nearly 200% year to date.
The rally reflects growing investor confidence that the artificial intelligence (AI) infrastructure boom is still in its early innings, positioning Applied Materials as one of the biggest beneficiaries of rising chip manufacturing spending.
But after such a powerful run, investors are asking the obvious question: Is there still room for AMAT stock to move higher, or has the good news already been priced in?’
Image Source: Zacks Investment Research
Why Applied Materials Stock Is SurgingSeveral catalysts have fueled Applied Materials' recent surge.
Perhaps the biggest driver has been renewed optimism surrounding AI-related semiconductor spending. Strong earnings and bullish outlooks from memory chip giant Micron Technology (MU - Free Report) ) and chipmaker Qualcomm (QCOM - Free Report) ) have reinforced expectations that hyperscalers and semiconductor manufacturers will continue investing aggressively in AI infrastructure.
That spending ultimately flows to semiconductor equipment suppliers like Applied Materials, which provides the tools needed to manufacture advanced chips.
Analysts have become increasingly bullish on the company, with multiple Wall Street firms recently raising their price targets for AMAT after management highlighted accelerating demand for leading-edge logic, Dynamic Random Access Memory (DRAM), and advanced packaging equipment.
To that point, some analysts believe wafer fabrication equipment spending could remain elevated for years to come as AI adoption expands across various industries.
Tracking Applied Materials’ OutlookBased on Zacks estimates, Applied Materials' annual sales are expected to increase 17% this year to a new peak of $33.29 billion, up from $28.37 billion in 2025. Furthermore, fiscal 2027 sales are projected to spike another 25% to $41.74 billion.
More impressively, Applied Materials' adjusted annual earnings are expected to jump 28% this year to a new peak of $12.11 per share, up from EPS of $9.42 on roughly $7 billion in adjusted net income last year. Better still, FY27 EPS is projected to climb another 32% to $15.98.
Image Source: Zacks Investment Research
It’s also noteworthy that over the last 60 days, FY26 and FY27 EPS estimates have risen 9% (F1) and 14% (F2), respectively.
Image Source: Zacks Investment Research
Monitoring AMAT’s ValuationFollowing its sharp rally, AMAT now trades at its highest P/E valuation in the last decade at 57X forward earnings. However, this is not an overly stretched premium to its Zacks Electronics-Semiconductors Industry average of 54X.
Like most AI-related semiconductor stocks, AMAT trades at a noticeable price-to-forward sales (P/S) premium as well, at 19X compared to its industry average of 8X.
Image Source: Zacks Investment Research
Is AMAT Still a Buy?Applied Materials is benefiting from one of the strongest investment cycles the semiconductor industry has experienced in years. Rising AI infrastructure spending, improving industry fundamentals, analyst upgrades, and stronger semiconductor capital expenditure forecasts have all combined to push shares to record highs.
Although investors should expect some volatility after the recent rally, Applied Materials remains well-positioned to capitalize on the long-term AI semiconductor buildout. For investors seeking exposure to the semiconductor equipment space, the company continues to offer an attractive combination of market leadership, strong earnings momentum, and secular growth potential.
Keeping this in mind, Applied Materials stock currently sports a Zacks Rank #2 (Buy), based on the trend of positive earnings estimate revisions, which is helping to justify its elevated P/E valuation.
Akcie Applied Materials vzrostly o více než 10 % po komentáři KeyBanc před výsledky za třetí čtvrtletí. KeyBanc zvýšila cílovou cenu na 750 USD a ponechala rating Overweight.
Applied Materials AMAT shares drew investor attention on Monday, rising more than 10% after KeyBanc Capital Markets issued early commentary ahead of the company’s upcoming third-quarter earnings.
The move came as markets reassessed expectations around the semiconductor equipment maker’s near-term performance and longer-term growth outlook tied to artificial intelligence infrastructure demand.
More than a month before Applied Materials reports its third-quarter results, KeyBanc highlighted what it described as elevated expectations across the company’s key business segments.
This includes the semiconductor capital equipment, electronic manufacturing services, and outsourced semiconductor assembly and test operations.
The firm noted that expectations are now higher than ever, increasing short-term risk around results.
According to TheFly, KeyBanc said that for the stock to continue rising, investors would need to see earnings beats on key metrics, guidance above consensus, and management commentary supporting continued positive out-year revisions.
While the firm remained constructive, maintaining an ‘Overweight’ rating, it also raised its price target by $200 to $750, implying roughly 20% upside from the previous closing price on Friday.
KeyBanc also warned that any disappointment—actual or perceived—could trigger downside volatility, referencing patterns seen in the prior quarter.
Investor sentiment toward Applied Materials has also been shaped by its recent 2026 DRAM and Advanced Packaging Master Class event.
During the presentation, the company projected that semiconductor industry revenue could reach $1 trillion this year.
Brokerage commentary following the event reinforced a positive long-term view.
B. Riley described AMAT as well-positioned for a sustained multi-year semiconductor equipment investment cycle and a “larger-than-expected long-term” opportunity, with potential for increased market share.
Wells Fargo also said the event reinforced its constructive outlook on the company’s product portfolio.
Cantor Fitzgerald added that the artificial intelligence infrastructure buildout is accelerating industry growth, stating that expectations could reach roughly $3 trillion by 2029 and potentially exceed $3.5 trillion by 2030.
A key theme emerging from the company’s messaging is demand tied to next-generation computing constraints.
The June 25 Master Class event highlighted new chipmaking systems aimed at accelerating DRAM production and advanced packaging for AI chips, addressing what management described as a “memory wall” constraining AI compute performance.
A wave of analyst price target revisions has also supported sentiment around Applied Materials in recent weeks.
Jefferies raised its target to $770 from $510, B. Riley lifted its target to $790 from $550, Wells Fargo increased its target to $740 from $715, and BofA moved its target to $720 from $540, with all firms maintaining Buy or Overweight ratings.
The upgrades come alongside strong company guidance for fiscal Q3, projecting revenue of approximately $8.95 billion and non-GAAP EPS of $3.36, implying roughly 36% year-over-year earnings growth.
Sector conditions have also provided a supportive backdrop.
Peer Micron’s recent earnings report highlighted surging AI-driven memory demand, reinforcing the broader industry narrative benefiting semiconductor equipment suppliers like Applied Materials.
Taken together, KeyBanc’s caution on elevated expectations, strong AI-driven structural demand, and a steady stream of analyst upgrades have combined to keep Applied Materials firmly in focus as investors position ahead of its upcoming earnings release.
Applied Materials snížila provozní cash flow na 845 mil. USD z 1,686 mld. USD a volné cash flow na 210 mil. USD z 1,04 mld. USD ve 2. čtvrtletí fiskálního roku 2026 kvůli investicím do kapacit a dodavatelského řetězce. Firma přitom očekává, že růst poptávky po AI zvedne její byznys s polovodičovým vybavením v roce 2026 o více než 30 %.
Key Takeaways AMAT's lower cash flow reflected investments to expand manufacturing and strengthen supply chains.Applied Materials expects AI-led demand to drive semiconductor equipment growth above 30% in 2026.AMAT returned $765 million via buybacks and dividends while funding capacity expansion. Applied Materials' (AMAT - Free Report) operating cash flow declined to $845 million from $1.686 billion in the prior quarter, and free cash flow declined to $210 million from $1.04 billion in the prior quarter in the second quarter of fiscal 2026. AMAT’s expanding manufacturing capacity and strengthening supply chain readiness can be a probable reason.
AMAT is investing in building plans, inventory positions and logistics capacity to ensure it can meet accelerating customer demand. Customers are providing longer-term demand forecasts, allowing Applied Materials to prepare manufacturing resources well in advance and support expected industry growth through 2027 and beyond.
Applied Materials is seeing AI adoption broaden and diversify, which is pushing wafer fab equipment spending toward leading-edge foundry-logic, DRAM and advanced packaging. Management expects these three areas to drive more than 80% of year-over-year total WFE growth in calendar 2026, with a similar profile in 2027.
The company also expects its semiconductor equipment business to grow more than 30% in 2026 as customers expand cleanroom capacity and accelerate equipment pull-ins. This demand mix aligns with Applied Materials’ stated leadership positions and supports a more durable multi-year spending cycle than prior compute-driven upturns, suggesting future cash flow strength.
Beyond all these, Applied Materials’ ability to generate sufficient cash to return capital to shareholders is a green flag. During the second quarter of fiscal 2026, Applied Materials distributed $765 million through $400 million of share repurchases and $365 million in dividends while simultaneously funding investments in production capacity and supply chain capabilities.
How Competitors Fare Against AMATApplied Materials has an unmatched breadth across semiconductor manufacturing. Applied Materials offers solutions across deposition, materials engineering, etch, metrology, inspection, packaging and process integration, allowing customers to optimize manufacturing flows using a single vendor across multiple stages of production. This broad portfolio positions the company to capture a larger share of customer spending as semiconductor manufacturing becomes increasingly materials-intensive, while also keeping its competitors like KLA Corporation (KLAC - Free Report) and Lam Research (LRCX - Free Report) .
KLA Corporation remains a dominant player in process control, wafer inspection and yield management solutions, while Lam Research competes with Applied Materials across deposition and etch technologies, including advanced atomic layer deposition systems used in leading-edge semiconductor manufacturing. Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 159.9% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 56.1%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 13.67X, higher than the industry’s average of 10.13X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 28% and 32%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
Applied Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Materials uvedla nové systémy pro DRAM a pokročilé pouzdření, které mají zlepšit výrobu 3D AI čipů a vyšší výtěžnost výroby. Novinky míří na HBM, 3D stacking i kontrolu defektů v pokročilém pouzdření.
June 25, 2026 09:00 ET | Source: Applied Materials, Inc.
Innovations spanning DRAM and advanced packaging enable the 3D architectures behind cutting-edge AI chipsA new epitaxy system optimized for DRAM fabs adds a critical logic-class step—boosting memory speed and efficiency while maximizing output within tight fab footprint and supply constraints New CMP and deposition systems target the most critical advanced packaging steps, delivering higher-yield chip stacking for HBM and logicNew eBeam systems bring wafer-fab-grade metrology and defect review to advanced packaging, optimized to handle the unique challenges these packages present SANTA CLARA, Calif., June 25, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc., the leader in materials engineering for the semiconductor industry, today introduced a suite of new chipmaking systems for building the advanced 3D chip architectures that power next-generation AI.
AI compute is increasingly constrained by memory, as model scale and data movement demands outpace gains in bandwidth, capacity and energy efficiency. This growing “memory wall” is accelerating adoption of advanced packaging architectures, including high bandwidth memory (HBM) and 3D stacking. These technologies deliver step-change improvements in bandwidth and efficiency but introduce new challenges in process complexity. Applied is enabling this transition with a materials engineering portfolio spanning DRAM, advanced packaging and process control, extending its leadership across each domain to help customers bring a new generation of AI chips to production faster and at higher yield.
Enhanced Epitaxy Brings Logic-Class Technology to Next-Generation DRAM
Epitaxy has been used for years in leading-edge logic, where precision growth of a crystalline material in the transistor channel has boosted performance well beyond what geometric scaling alone can deliver. Those same techniques are now becoming critical in DRAM peripheral transistors. Applied pioneered silicon germanium epitaxy in transistor channels more than a decade ago with its Centura™ Prime™ Epi system.
Enhanced Centura™ Prime™ Epi
Applied is now introducing an enhanced Centura™ Prime™ Epi system that selectively grows doped silicon germanium and silicon phosphorous in source/drain regions, combining advanced strain engineering with precise doping control. The result is higher drive current and transistor efficiency, enabling faster, more power-efficient DRAM operation—essential for the bandwidth demands of HBM and next-generation DDR. The new system also features a 20% smaller footprint, enabling higher tool density and faster capacity scaling in DRAM fabs.
“The transistor and materials technologies that drove performance gains in leading-edge logic are now becoming essential in DRAM,” said Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials. “As DRAM scales to meet the bandwidth demands of HBM and AI workloads, the distinction between logic and memory process technology is converging. By leveraging our epitaxy leadership in leading-edge logic, Applied is uniquely positioned to drive this transition in DRAM.”
New CMP and Deposition Systems Target the Most Critical Advanced Packaging Steps
In recent years, advanced packaging has become as strategically important to the computing industry as on-chip transistor scaling. Modern AI server chips pack trillions of transistors by integrating multiple dies into a single package. HBM is a leading example of this approach, stacking DRAM chips on top of one another and connecting them with through-silicon vias (TSVs). Applied is the leader in process equipment for advanced packaging, including systems covering the majority of materials engineering steps required to create the TSVs, copper pillars and microbumps that connect stacked dies. Today, Applied is introducing three new systems targeting the most critical advanced packaging process steps.
Opta™ Quad CMP
Leveraging Applied’s leadership position in chemical mechanical planarization (CMP), the Opta™ Quad platform is engineered specifically for advanced packaging, where thicker films, longer polish times and tighter tolerances raise the risk of non-uniformity and yield loss. Opta Quad continuously monitors wafer conditions during polish and dynamically adjusts in real time, improving within-wafer uniformity and total thickness variation control. This is particularly critical for hybrid bonding—an emerging 3D stacking technology in which copper wiring and surrounding dielectrics from two chips are fused together in a single step, requiring near-perfect surface planarity for high-yield results.
Nokota™ VMax™ 2 ECD
As 3D stacks scale, uneven interconnects can leave gaps that prevent reliable contact between layers. Ensuring the TSVs and microbumps are leveled across the entire wafer becomes critical to stacking yield. Nokota™ VMax™ 2 is an electrochemical deposition (ECD) system engineered for high-precision copper plating across a broad range of applications for next-generation packaging, from TSV fill for 3D stacking to fine-pitch interconnects such as microbump formation. Nokota VMax 2 introduces Adaptive Pattern Tuning (APT), which dynamically shapes the electric field to correct for layout-driven variation and improve plating uniformity across the wafer.
Producer™ Avila™ 2 PECVD
To fit more layers into a stack, HBM dies are thinned to roughly 1/25th the thickness of a standard wafer, making them prone to warpage and deformation. These effects compound as layers are added, increasing the risk of bonding failure and yield loss. Producer™ Avila™ 2 is a plasma-enhanced chemical vapor deposition (PECVD) system that improves the mechanical stability of ultra-thin DRAM dies by depositing stress-balanced dielectric films around TSVs, enabling reliable stacking of 12, 16, and future high-layer-count HBM designs. In addition to HBM, the system supports a range of advanced memory and logic integration schemes.
“Advanced packaging has become a primary driver of system-level performance, and the complexity of next-generation 3D architectures demands new levels of precision across every process step,” Raja said. “Applied’s leadership in dielectric CVD, ECD and CMP—combined with deep process integration expertise—gives customers the tools they need to scale 3D stacks reliably and at yield.”
New eBeam Systems Bring Wafer-Fab Process Control to Advanced Packaging
Advanced packaging fabs are encountering defect and metrology challenges once exclusively found in wafer fabs. Feature dimensions have shrunk below the resolution limit of optical inspection tools, and particles that were tolerable with larger bumps now impact yield. A single defect can require scrapping an entire HBM stack, elevating process control to a strategic priority. Applied is extending its eBeam leadership with two new systems specifically designed for advanced packaging—both engineered to handle a wide range of substrate geometries and materials.
VeritySEM™ 7AP CD Metrology
The latest in Applied’s VeritySEM™ portfolio for critical dimension (CD) metrology, VeritySEM™ 7AP enables precise measurement of features on thick, heterogeneous, and highly warped substrates common in HBM and chiplet architectures. VeritySEM AP systems automatically reconfigure to support a range of sizes and materials, while delivering sub-10nm sensitivity—orders of magnitude better than optical tools.
SEMVision™ G7AP Defect Analysis
SEMVision™ is the industry’s leading eBeam defect analysis platform. SEMVision™ G7AP extends Applied’s leadership into advanced packaging, enabling high-resolution defect review and automated classification across silicon, organic, and glass substrates. The system can accelerate yield learning by helping customers quickly distinguish critical defects from nuisance signals. SEMVision G7AP is already in production at leading memory and logic manufacturers supporting high-volume advanced packaging.
“Applied has been at the forefront of eBeam technology for decades,” said Keith Wells, Group Vice President and General Manager of the Imaging and Process Control Group at Applied Materials. “As advanced packaging geometries scale below the resolution limit of optical tools, packaging fabs need eBeam-grade precision to both redetect and classify the defects. In developing the VeritySEM 7AP and SEMVision G7AP tools, Applied is transferring proven wafer fab expertise into packaging—purpose-built for the substrates and defect challenges of 3D architectures.”
A media kit with additional information on the new systems is available on the Applied Materials website. Further details about Applied’s advanced technologies will be provided at the company’s DRAM and Advanced Packaging Master Class being held later today.
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.
Contact:
Ricky Gradwohl (Media) 408.235.4676
Mike Sullivan (Financial Community) 408.986.7977
Applied Materials letos vzrostl o více než 140 % a Citi zvýšila cílovou cenu na 710 USD kvůli strukturálnímu růstu poptávky po NAND díky agentic AI. Akcie se ale obchodují na valuaci nad úrovní dot-com bubliny.
This week's news that Applied Materials Inc NASDAQ: AMAT has just crossed the price-to-sales valuation it held at the peak of the dot-com bubble in April 2000 might have been enough to get even the most committed bulls reaching for the Pepto.
Applied Materials Today
AMAT
Applied Materials
$591.47 +5.59 (+0.95%)
As of 12:26 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$154.46▼
$641.18Dividend Yield0.36%
P/E Ratio55.69
Price Target$501.26
That’s because headlines comparing a stock's valuation to its dot-com bubble level usually serve as a flashing red light for investors. When you consider just how big a tear the semiconductor equipment maker has been on, it’s somewhat understandable.
Get Applied Materials alerts:
Applied Materials’ share hit yet another fresh all-time high this week, as the multi-month rally continued to gain momentum. All told, the stock is up more than 140% year to date and a staggering 50% in the past month alone.
That kind of run is the kind that makes new highs, breaks technical models, and, eventually, attracts headlines like this one. The question for investors is whether that historical comparison is the warning sign it sounds like, or whether the current environment is different enough that the multiple is actually justified. Let's jump into it.
Why the Rally Is Anything But IrrationalThe starting point worth holding onto is that this isn't a 1999-style story of a company being bought purely on hope and hype. Applied Materials is genuinely benefiting from one of the most powerful structural tailwinds the semiconductor industry has ever seen. The team at Citi made that exact point earlier this week, raising its price target on the stock as it cited a "structural increase" in NAND demand driven by the explosion of agentic AI workloads.
The argument is technical, but still fairly intuitive when you boil it down. As AI workloads become more complex and demanding, they require a much larger memory pool than the fastest and most expensive memory types can practically provide. That's pushing the industry toward cheaper, higher-capacity alternatives, and Applied Materials sits at the heart of the equipment supply chain that makes those alternatives possible.
Coupled with ongoing innovation across the broader memory landscape, the team at Citi sees this shift as a structural tailwind that should continue to drive the company's earnings growth well into 2028. That's not a near-term sugar high. That's a multi-year trend that the bulls are betting will continue to drive revenue growth at rates most other tech stocks would kill for.
Analysts Are Unanimous in Their OutlookOverall MarketRank™83rd Percentile
Analyst RatingModerate Buy
Upside/Downside15.5% Downside
Short Interest LevelHealthy
Dividend StrengthModerate
News Sentiment1.11 Insider TradingSelling Shares
Proj. Earnings Growth31.90%
See Full Analysis
In fact, Applied Materials’ Moderate Buy consensus rating and the latest round of higher analyst price targets are another reason to avoid leaning too heavily on the dot-com comparison.
Citi’s $710 target, up from $550, still implies upside from recent highs, and the firm is far from alone.
Barclays, UBS Group and Cantor Fitzgerald are among the firms that have recently reiterated or raised bullish views on Applied Materials.
When well-regarded analysts continue to raise their targets, even after a stock has already gained 140% this year, it tells you something about their confidence in its growth trajectory.
The Risks Are Real TooFor all that, however, there's no escaping the sheer one-directional nature of the chart in recent months, or this week’s dot-com headline. Applied Materials’ relative strength index is also pushing into overbought territory, which can often set the scene for a sharp reset whenever sentiment starts swinging the other way.
There are also genuine fundamental concerns that shouldn't be ignored. Almost 30% of the company’s revenue comes from China, which leaves Applied Materials more exposed than most to any sudden trade-policy disruption or further restrictions on equipment exports.
How to Build a Position CarefullyFor investors looking to get involved, there’s plenty to consider. The bull case is genuine, the structural demand picture is compelling, and the analyst community is firmly in the camp of higher prices ahead. But the chart is also stretched, the valuation is at historically extreme levels, and one-directional rallies tend to find their reckoning eventually.
For investors looking to chase this entry, that probably means resisting the urge to go all-in on a single position and instead building it up in stages. A starter position now, with the discipline to add on the pullbacks that almost certainly lie ahead, is likely a smarter way to play this than trying to time the absolute top. The dot-com comparison may make for an uncomfortable headline, but the difference between 2000 and 2026 is that this time, the demand is genuinely there. The trick is to make sure you don't pay too much for it.
Should You Invest $1,000 in Applied Materials Right Now?Before you consider Applied Materials, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Applied Materials wasn't on the list.
While Applied Materials currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Unlock the timeless value of gold with our exclusive 2026 Gold Forecasting Report. Explore why gold remains the ultimate investment for safeguarding wealth against inflation, economic shifts, and global uncertainties. Whether you're planning for future generations or seeking a reliable asset in turbulent times, this report is your essential guide to making informed decisions.
Applied Materials vykázala rekordní tržby v segmentu Semiconductor Systems ve výši 5,97 mld. USD díky poptávce po AI čipech. Firma očekává, že tržby z advanced packaging v roce 2026 vzrostou o více než 50 %.
Key Takeaways Applied Materials posted record Semiconductor Systems revenues, driven by AI chip manufacturing demand.AMAT expects leading-edge logic, DRAM and advanced packaging to drive wafer equipment spending growth.Applied Materials sees advanced packaging revenue rising more than 50% in 2026. Applied Materials’ (AMAT - Free Report) Semiconductor Systems segment emerged as the company’s primary growth engine in the past several quarters, driven by the rapid expansion of artificial intelligence infrastructure and increasing demand for advanced semiconductor manufacturing technologies.
AMAT’s semiconductor systems segment delivered record revenues of $5.97 billion during the second quarter of fiscal 2026, representing 10% year-over-year growth and 16% sequential growth. Profitability also strengthened, with gross margin expanding to 54.7% from 53.5% a year earlier and operating margin improving to 35.1% from 32.8%.
Revenue composition further highlights the shift toward AI-driven semiconductor investment. Foundry, logic and other applications contributed 67% of segment revenues, DRAM accounted for 29%, and flash memory represented just 4%. The higher contribution from foundry-logic and DRAM is increasingly driving demand for leading-edge logic chips, high-bandwidth memory and advanced packaging technologies.
Management believes that leading-edge foundry-logic, DRAM and advanced packaging will account for more than 80% of the year-over-year growth in wafer fabrication equipment spending during 2026. The company also introduced two new products designed for next-generation gate-all-around manufacturing. Trillium ALD and Precision Selective Nitride PECVD for reducing parasitic capacitance and improving chip performance-per-watt.
In memory, Applied Materials continues to benefit from accelerating AI-driven DRAM investments and expects further gains from future transistor and device architecture transitions. Meanwhile, advanced packaging remains another major growth opportunity, with packaging revenues expected to increase more than 50% in 2026.
How Competitors Fare Against AMATASML Holding (ASML - Free Report) and Lam Research (LRCX - Free Report) are strong contenders in leading-edge logic chips, high-bandwidth memory and advanced packaging technologies.
ASML is experiencing strong demand from DRAM and logic customers, which are ramping leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps in shortening cycle time and lowering costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and Lam Research, making it a stock worth holding.
Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Additionally, Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 121.1% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 52.1%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 11.69X, higher than the industry’s average of 9.90X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 28% and 32%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
Applied Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akcie Applied Materials, ASML a Lam Research vystřelily na rekordy po býčím reportu Citi o sektoru polovodičových zařízení. Citi zároveň zvýšila cílové ceny pro Applied Materials, KLA a Lam Research.
Several leading semiconductor equipment firms saw their shares hit record highs on Wednesday after a bullish report on the sector from investment firm Citi. ASML (ASML) stock was among those in rarefied air.
Citi analyst Atif Malik increased his bull-case estimates for wafer fabrication equipment (WFE) sales for 2026 and the next two years. He also raised his price targets on buy-rated Applied Materials (AMAT), KLA (KLAC) and Lam Research (LRCX).
↑ X NOW PLAYING The Best Investments Beyond AI
Malik upped his price target on Applied Materials to 710 from 550. On the stock market today, Applied Materials surged 4.4% to close at 592.92. Earlier in the session, AMAT stock notched an all-time high of 623.35.
He raised his price target on KLA to 290 from 206.40. KLA stock rose 0.6% to 238.73 on Wednesday. It is trading below its record high of 267.17, reached on Monday.
Malik increased his price target on Lam stock to 450 from 315. On Wednesday, Lam stock climbed 1.3% to 374.18. In intraday trading, it reached an all-time high of 397.54.
ASML Stock Spikes To Record High Elsewhere among chip gear stocks, ASML jumped 3.5% to close at 1,867.83. Earlier in the day, it hit a record high of 1,938.49.
Semiconductor equipment stocks are benefiting from chipmakers buying new gear to increase capacity to produce logic, memory and other chips for the artificial intelligence boom.
Malik predicted bull-case WFE sales of $145 billion this year, $200 billion in 2027 and $250 billion in 2028.
"We are more constructive on 2028 WFE given continued capacity constraints and expansion at both TSMC and memory makers, as well as recent progress at Intel and Samsung foundries," he said in a client note.
Other chip gear stocks hitting record highs on Wednesday included ACM Research (ACMR), MKS (MKSI), Teradyne (TER) and Tokyo Electron (TOELY).
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
AMD Stock Upgraded To Buy On GPU Upside
Taiwan Semiconductor Sales Rise 30% In May, Remain On Target
Discover Profitable Trades Each Day With MarketDiem. See How.
Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens
Join IBD Live For Stock Ideas Each Morning Before The Open
Applied Materials oznámila, že výnosy segmentu AGS ve 2. čtvrtletí fiskálního roku 2026 vzrostly na 1,665 mld. USD a marže se meziročně zlepšily. Firma u AGS očekává dlouhodobý růst v nižších desítkách procent ročně.
Key Takeaways Applied Materials' AGS revenues rose to $1.665B in fiscal Q2 2026 as margins improved year over year.AMAT expects AGS to deliver sustainable mid-teens annual growth driven by revenue per installed tool.Applied Materials says AIx now connects 35,000 chambers with AI-powered monitoring and diagnostics. Applied Materials’ (AMAT - Free Report) Applied Global Services (“AGS”) is becoming an increasingly important part of Applied Materials’ business because it turns the company’s large installed base into a recurring revenue engine. In the second quarter of fiscal 2026, AGS generated $1.665 billion of revenues, up from $1.42 billion a year earlier, while its gross margin improved to 34.7% and its operating margin rose to 29.2%.
The strategic value of AGS is that it adds resilience to Applied Materials' profit model. Unlike the more cyclical equipment business, services are tied to a growing installed base and to customer needs throughout the tool lifecycle. Management said AGS is another important growth driver because Applied Materials increases the revenue it generates “per tool” on top of a growing installed base.
AMAT expects the AGS segment to deliver a sustainable annual growth rate in the mid-teens, potentially higher this year. That makes AGS an important bridge between one-time equipment sales and long-duration customer relationships. What makes AGS especially relevant in the AI era is the company’s AI-enabled service layer. Applied Materials said that more than 35,000 chambers are connected to its AIx software capabilities, which use AI-powered monitoring, diagnostics and analytics.
This matters because Applied Materials’ broader AI and advanced-node strategy depends on execution, visibility and support after installation. Management noted that customers are giving the clearest and longest visibility it has ever seen, while demand remains strong across leading-edge logic and DRAM.
In that setting, AGS helps stabilize Applied Materials’ revenue base, deepen customer relationships and improve operating leverage as the company scales. The segment’s margin profile, recurring nature and AI-driven service enhancements make it a valuable part of Applied Materials’ long-term earnings power.
How Competitors Fare Against AMATSince AMAT serves its own installed base through the AGS business, there are no competitors in this segment. But in the broader product category, AMAT competes with Lam Research (LRCX - Free Report) and ASML Holding (ASML - Free Report) .
ASML is experiencing strong demand from DRAM and logic customers, which are ramping leading-edge nodes using ASML’s NXE:3800E EUV systems. Additionally, ASML noted that multiple DRAM customers are adopting EUV lithography, which helps in shortening cycle time and lowering costs. However, AMAT offers a broad range of WFE products that do not compete directly with ASML and LRCX, making the stock worth holding.
Lam Research secured multiple critical etch wins at a major DRAM manufacturer with its new Akara etch system, which supports 3D DRAM architectures. This was supported by LRCX’s customer investments in DDR5, LPDDR5 and high-bandwidth memory. Additionally, Lam Research’s Aether dry-resist technology was recently selected as the production tool of record for a leading DRAM customer, securing a foothold in this high-growth segment.
AMAT’s Price Performance, Valuation and EstimatesShares of Applied Materials have surged 140.1% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 57.3%.
AMAT YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 12.68X, higher than the industry’s average of 10.3X.
AMAT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 and 2027 earnings implies year-over-year growth of 28% and 32%, respectively. Estimates for fiscal 2026 have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
The estimates for fiscal 2026 and 2027 have been revised upward over the past 30 days.Applied Materials currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
