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.
