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Compass Wealth Management LLC cut its stake in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 6.3% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 32,178 shares of the manufacturing equipment provider’s stock after selling 2,179 shares during the quarter. Applied Materials makes up 3.1% of Compass Wealth Management LLC’s portfolio, making the stock its 4th largest holding. Compass Wealth Management LLC’s holdings in Applied Materials were worth $16,455,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Curry Webb Wealth Management LLC acquired a new stake in shares of Applied Materials in the third quarter valued at $30,000. SeaCrest Wealth Management LLC raised its holdings in shares of Applied Materials by 1.1% in the third quarter. SeaCrest Wealth Management LLC now owns 6,895 shares of the manufacturing equipment provider’s stock valued at $3,526,000 after buying an additional 78 shares during the last quarter. NBT Bank N.A. acquired a new position in Applied Materials during the 3rd quarter worth about $1,542,000. Isthmus Partners LLC lifted its position in Applied Materials by 1.9% during the 3rd quarter. Isthmus Partners LLC now owns 34,665 shares of the manufacturing equipment provider’s stock worth $17,727,000 after buying an additional 649 shares in the last quarter. Finally, Root Financial Partners LLC lifted its position in Applied Materials by 3.1% during the 3rd quarter. Root Financial Partners LLC now owns 2,351 shares of the manufacturing equipment provider’s stock worth $1,202,000 after buying an additional 71 shares in the last quarter. 80.56% of the stock is owned by institutional investors.

Insider Buying and Selling In other Applied Materials news, CFO Brice Hill sold 7,500 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the transaction, the chief financial officer owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. This represents a 5.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Judy Bruner sold 1,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the transaction, the director owned 25,544 shares of the company’s stock, valued at $11,877,960. The trade was a 3.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 9,225 shares of company stock valued at $4,454,181 over the last ninety days. Insiders own 0.30% of the company’s stock.

Applied Materials Price Performance Applied Materials stock opened at $375.58 on Friday. The business’s 50-day simple moving average is $469.97 and its 200 day simple moving average is $487.71. The stock has a market cap of $298.06 billion, a price-to-earnings ratio of 32.38, a P/E/G ratio of 1.14 and a beta of 1.60. Applied Materials, Inc. has a 12-month low of $203.40 and a 12-month high of $739.67. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. Applied Materials (NASDAQ:AMAT – Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping the consensus estimate of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The firm had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. During the same period in the previous year, the business posted $2.48 EPS. The company’s quarterly revenue was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, research analysts anticipate that Applied Materials, Inc. will post 12.79 earnings per share for the current year.

Applied Materials Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Thursday, November 19th. Applied Materials’s payout ratio is 18.28%.

Analysts Set New Price Targets AMAT has been the topic of a number of research analyst reports. Citigroup reissued a “buy” rating and set a $710.00 price objective (up from $550.00) on shares of Applied Materials in a report on Monday, August 3rd. Needham & Company LLC dropped their target price on shares of Applied Materials from $740.00 to $580.00 and set a “buy” rating for the company in a research note on Friday, October 16th. New Street Research reduced their target price on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating on the stock in a research report on Friday, August 14th. KeyCorp increased their price target on shares of Applied Materials from $550.00 to $750.00 and gave the company an “overweight” rating in a research note on Monday, June 29th. Finally, B. Riley Financial reissued a “buy” rating and set a $700.00 price target (down from $790.00) on shares of Applied Materials in a research note on Friday, August 14th. Thirty analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, Applied Materials presently has an average rating of “Moderate Buy” and an average price target of $632.70.

Check Out Our Latest Stock Analysis on Applied Materials

Key Applied Materials News Here are the key news stories impacting Applied Materials this week:

Positive Sentiment: Applied Materials saw approximately $102.1 million of net ETF buying on Tuesday, indicating continued institutional demand for the stock despite recent weakness. Applied Materials Sees $102.1 Million in Net ETF Buying on Tuesday Positive Sentiment: The company’s Semiconductor Systems business is positioned to benefit from AI-chip investment in advanced logic, DRAM and advanced packaging. These trends could support revenue growth and margin expansion in coming years. Can Semiconductor Systems Drive AMAT’s Next Growth Phase? Neutral Sentiment: Applied Materials will report fourth-quarter and fiscal 2026 results on November 12, 2026. The announcement gives investors a clear upcoming catalyst, but contains no change to earnings guidance. Applied Materials to Report Fourth Quarter and Fiscal 2026 Results on Nov. 12, 2026 Negative Sentiment: Lam Research’s outlook, described as only “a bit higher,” disappointed investors following an otherwise strong quarter. Its warning that supply constraints could limit growth pressured the broader chip-equipment group, including AMAT. Applied Materials Sinks on Lam’s Outlook Negative Sentiment: The sector-wide selloff reflects concerns that equipment makers may face near-term capacity and supply limitations even as AI demand remains strong. Applied Materials’ shares also remain below their recent moving averages, amplifying investor caution. Lam Research Sinks as Supply Constraints Cap Outlook Negative Sentiment: Investors have reacted cautiously to Applied Materials’ 2030 plan, including a target of more than $12 billion in services revenue and roughly 54% non-GAAP gross margin. The long-term targets may require substantial execution and are not immediately easing concerns about the current equipment cycle. Applied Materials Slides After Targeting $12 Billion in Services by 2030 Applied Materials Profile (Free Report)

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.

Featured Articles Five stocks we like better than Applied Materials Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check 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).

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Axxcess Wealth Management LLC reduced its stake in Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 83.5% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 4,852 shares of the manufacturing equipment provider’s stock after selling 24,473 shares during the quarter. Axxcess Wealth Management LLC’s holdings in Applied Materials were worth $2,481,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. State Street Corp raised its holdings in Applied Materials by 85.4% during the 2nd quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock worth $50,267,184,000 after purchasing an additional 32,018,892 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Applied Materials in the 2nd quarter worth approximately $5,252,863,000. Jupiter Topco LLC acquired a new position in shares of Applied Materials in the 2nd quarter worth approximately $1,512,287,000. Amundi boosted its stake in shares of Applied Materials by 19.0% in the 2nd quarter. Amundi now owns 7,808,207 shares of the manufacturing equipment provider’s stock valued at $5,645,344,000 after purchasing an additional 1,246,876 shares during the last quarter. Finally, BlackRock Inc. boosted its stake in shares of Applied Materials by 1.6% in the 2nd quarter. BlackRock Inc. now owns 80,212,518 shares of the manufacturing equipment provider’s stock valued at $57,993,650,000 after purchasing an additional 1,237,685 shares during the last quarter. 80.56% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades Several equities research analysts have recently weighed in on AMAT shares. Cantor Fitzgerald reiterated an “overweight” rating on shares of Applied Materials in a research report on Tuesday. William Blair initiated coverage on shares of Applied Materials in a report on Tuesday, August 11th. They issued a “market perform” rating on the stock. Seaport Research Partners reaffirmed a “buy” rating and set a $575.00 price target (up from $500.00) on shares of Applied Materials in a research report on Friday, August 14th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $600.00 price target on shares of Applied Materials in a research report on Wednesday, October 14th. Finally, Weiss Ratings downgraded Applied Materials from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, September 9th. Thirty investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, Applied Materials has an average rating of “Moderate Buy” and an average price target of $632.70.

Read Our Latest Stock Analysis on AMAT Insider Activity In related news, CFO Brice Hill sold 7,500 shares of the business’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the sale, the chief financial officer directly owned 128,613 shares of the company’s stock, valued at $61,637,780.25. The trade was a 5.51% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Adam Sanders sold 725 shares of the business’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total value of $394,806.00. Following the completion of the sale, the chief accounting officer directly owned 3,181 shares of the company’s stock, valued at $1,732,245.36. The trade was a 18.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 9,225 shares of company stock worth $4,454,181. Company insiders own 0.30% of the company’s stock.

Applied Materials News Summary Here are the key news stories impacting Applied Materials this week:

Positive Sentiment: Applied Materials saw approximately $102.1 million of net ETF buying on Tuesday, indicating continued institutional demand for the stock despite recent weakness. Applied Materials Sees $102.1 Million in Net ETF Buying on Tuesday Positive Sentiment: The company’s Semiconductor Systems business is positioned to benefit from AI-chip investment in advanced logic, DRAM and advanced packaging. These trends could support revenue growth and margin expansion in coming years. Can Semiconductor Systems Drive AMAT’s Next Growth Phase? Neutral Sentiment: Applied Materials will report fourth-quarter and fiscal 2026 results on November 12, 2026. The announcement gives investors a clear upcoming catalyst, but contains no change to earnings guidance. Applied Materials to Report Fourth Quarter and Fiscal 2026 Results on Nov. 12, 2026 Negative Sentiment: Lam Research’s outlook, described as only “a bit higher,” disappointed investors following an otherwise strong quarter. Its warning that supply constraints could limit growth pressured the broader chip-equipment group, including AMAT. Applied Materials Sinks on Lam’s Outlook Negative Sentiment: The sector-wide selloff reflects concerns that equipment makers may face near-term capacity and supply limitations even as AI demand remains strong. Applied Materials’ shares also remain below their recent moving averages, amplifying investor caution. Lam Research Sinks as Supply Constraints Cap Outlook Negative Sentiment: Investors have reacted cautiously to Applied Materials’ 2030 plan, including a target of more than $12 billion in services revenue and roughly 54% non-GAAP gross margin. The long-term targets may require substantial execution and are not immediately easing concerns about the current equipment cycle. Applied Materials Slides After Targeting $12 Billion in Services by 2030 Applied Materials Stock Performance NASDAQ:AMAT opened at $375.58 on Friday. The company has a fifty day moving average of $469.97 and a 200-day moving average of $487.71. The firm has a market capitalization of $298.06 billion, a P/E ratio of 32.38, a P/E/G ratio of 1.14 and a beta of 1.60. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. Applied Materials, Inc. has a twelve month low of $203.40 and a twelve month high of $739.67.

Applied Materials (NASDAQ:AMAT – Get Free Report) last released its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. Applied Materials’s quarterly revenue was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, sell-side analysts anticipate that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.53 per share. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.6%. Applied Materials’s dividend payout ratio is currently 18.28%.

Applied Materials Profile (Free Report)

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.

Recommended Stories Five stocks we like better than Applied Materials Is Texas Instruments Setting Up for Its Next Big Breakout? Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was Tesla’s Flying-Car Hype Hits an Earnings Reality Check

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A supply warning inside an otherwise record quarter is pulling chip equipment stocks lower, and the company that issued it is taking the worst of the damage. Lam Research (NASDAQ:LRCX | LRCX Price Prediction) stock is down 9% to $236.

Diversify Advisory Services LLC reduced its position in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 10.7% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 12,476 shares of the manufacturing equipment provider’s stock after selling 1,496 shares during the period. Diversify Advisory Services LLC’s holdings in Applied Materials were worth $6,380,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently modified their holdings of the company. Harborfront Financial Group LLC bought a new stake in Applied Materials in the 2nd quarter valued at about $27,000. Orion Capital Management LLC acquired a new stake in shares of Applied Materials in the 2nd quarter valued at $33,000. Highland Investment Advisors LLC acquired a new stake in Applied Materials in the second quarter valued at about $33,000. BOK Financial Private Wealth Inc. acquired a new stake in shares of Applied Materials in the 2nd quarter valued at approximately $41,000. Finally, Dakota Community Bank & Trust NA bought a new stake in shares of Applied Materials during the third quarter worth $31,000. Institutional investors own 80.56% of the company’s stock.

Insiders Place Their Bets
In other news, CAO Adam Sanders sold 725 shares of the stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the sale, the chief accounting officer directly owned 3,181 shares in the company, valued at approximately $1,732,245.36. This represents a 18.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Judy Bruner sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the completion of the sale, the director owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This trade represents a 3.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 9,225 shares of company stock valued at $4,454,181 in the last ninety days. Company insiders own 0.30% of the company’s stock.

Applied Materials Trading Up 1.0%
Shares of AMAT opened at $408.94 on Thursday. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. The firm’s 50 day simple moving average is $473.15 and its 200 day simple moving average is $487.51. Applied Materials, Inc. has a 1-year low of $203.40 and a 1-year high of $739.67. The company has a market capitalization of $324.53 billion, a P/E ratio of 37.12, a P/E/G ratio of 1.13 and a beta of 1.60.
Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The firm had revenue of $9.12 billion during the quarter, compared to analysts’ expectations of $8.99 billion. During the same period in the prior year, the business earned $2.48 EPS. The company’s revenue for the quarter was up 24.8% compared to the same quarter last year. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Sell-side analysts forecast that Applied Materials, Inc. will post 12.79 earnings per share for the current fiscal year.

Applied Materials Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.53 dividend. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a dividend yield of 0.5%. Applied Materials’s payout ratio is currently 18.28%.

Wall Street Analyst Weigh In
Several research analysts have recently issued reports on AMAT shares. HSBC lowered their price objective on Applied Materials from $683.00 to $641.00 and set a “buy” rating for the company in a research note on Friday, August 14th. Erste Group Bank lowered shares of Applied Materials from a “buy” rating to a “hold” rating in a research note on Wednesday, August 5th. Bank of America decreased their price target on shares of Applied Materials from $720.00 to $650.00 and set a “buy” rating for the company in a research note on Friday, August 14th. Berenberg Bank increased their target price on shares of Applied Materials from $575.00 to $675.00 and gave the company a “buy” rating in a report on Monday, August 17th. Finally, New Street Research decreased their price objective on shares of Applied Materials from $580.00 to $525.00 and set a “neutral” rating for the company in a report on Friday, August 14th. Thirty equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $632.70.

View Our Latest Report on Applied Materials

(Free Report)

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.

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Focused Alpha LLC trimmed its stake in Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 79.1% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 600 shares of the manufacturing equipment provider’s stock after selling 2,268 shares during the quarter. Focused Alpha LLC’s holdings in Applied Materials were worth $307,000 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 company. Ausdal Financial Partners Inc. purchased a new position in shares of Applied Materials in the second quarter worth approximately $4,005,000. Caldwell Investment Management Ltd. purchased a new position in shares of Applied Materials during the 2nd quarter valued at about $1,589,000. CX Institutional boosted its position in shares of Applied Materials by 333.3% in the third quarter. CX Institutional now owns 25,853 shares of the manufacturing equipment provider’s stock worth $12,631,000 after purchasing an additional 19,886 shares during the period. Evolve Private Wealth LLC boosted its position 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 worth $983,000 after purchasing an additional 1,067 shares during the period. Finally, Principal Financial Group Inc. lifted its stake in shares of Applied Materials by 3.0% during the 2nd quarter. Principal Financial Group Inc. now owns 1,008,591 shares of the manufacturing equipment provider’s stock valued at $729,211,000 after buying an additional 28,982 shares in the last quarter. 80.56% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth Several research firms have recently issued reports on AMAT. Evercore set a $590.00 price objective on shares of Applied Materials in a research report on Thursday, October 15th. Morgan Stanley cut their target price on shares of Applied Materials from $642.00 to $563.00 and set an “equal weight” rating for the company in a report on Monday, September 28th. Berenberg Bank lifted their price target on Applied Materials from $575.00 to $675.00 and gave the stock a “buy” rating in a research report on Monday, August 17th. Jefferies Financial Group raised their price target on Applied Materials from $510.00 to $770.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Finally, Zacks Research lowered shares of Applied Materials from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 15th. Thirty research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $632.70.

View Our Latest Analysis on AMAT Key Headlines Impacting Applied Materials Here are the key news stories impacting Applied Materials this week:

Positive Sentiment: Industry research projects the global e-beam wafer-inspection systems market will expand from $1.3 billion in 2024 to $3.6 billion by 2030. Increasingly complex semiconductor nodes, higher yield requirements and AI-driven data processing could support long-term demand for Applied Materials’ inspection-related equipment. E-Beam Wafer Inspection Systems Market Forecasts Growth Positive Sentiment: Applied Materials was recognized as a 2027 Conference Board Innovation Awards honoree, highlighting its technology development efforts, although the award is unlikely to materially affect near-term earnings. The Conference Board Announces Innovation Awards Honorees Neutral Sentiment: Analyst commentary remains broadly constructive: some firms continue raising earnings estimates and maintain price targets substantially above the current level. However, other analysis questions whether the company’s AI growth opportunity is already priced in after its strong one-year performance. Applied Materials Cratered 20% Since July Negative Sentiment: Applied Materials experienced approximately $58.8 million in net ETF selling on October 15, adding technical pressure and potentially contributing to the latest weakness. Applied Materials Sees Net ETF Selling Negative Sentiment: The decline occurred despite broader market gains, indicating investors may be locking in gains and reassessing AMAT’s elevated valuation following its strong advance. Recent results were solid—revenue rose 24.8% year over year and EPS exceeded consensus—but those positives may already be reflected in the share price. Applied Materials Stock Sinks as Market Gains Applied Materials Trading Down 2.0% NASDAQ:AMAT opened at $404.98 on Wednesday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.79 and a current ratio of 2.42. The firm has a 50-day simple moving average of $475.93 and a 200-day simple moving average of $487.09. Applied Materials, Inc. has a one year low of $203.40 and a one year high of $739.67. The firm has a market cap of $321.39 billion, a P/E ratio of 34.91, a P/E/G ratio of 1.15 and a beta of 1.60.

Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, topping analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%. The company had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. During the same quarter in the prior year, the business earned $2.48 earnings per share. Applied Materials’s revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. Equities analysts anticipate that Applied Materials, Inc. will post 12.79 EPS for the current fiscal year.

Applied Materials Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.53 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 0.5%. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.

Insider Buying and Selling In other Applied Materials news, CFO Brice Hill sold 7,500 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the sale, the chief financial officer owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. This trade represents a 5.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Adam Sanders sold 725 shares of the business’s stock in a transaction that occurred on Friday, October 2nd. The stock was sold at an average price of $544.56, for a total transaction of $394,806.00. Following the sale, the chief accounting officer directly owned 3,181 shares in the company, valued at approximately $1,732,245.36. This represents a 18.56% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 9,225 shares of company stock worth $4,454,181 in the last ninety days. 0.30% of the stock is owned by insiders.

Applied Materials Profile (Free Report)

Applied Materials, Inc is a technology company that supplies equipment, services and software used to manufacture semiconductors and advanced displays. Its products help customers fabricate the integrated circuits and other components used in computers, mobile devices, data centers, automobiles and a range of connected technologies.

The company’s offerings include systems for materials engineering, wafer fabrication, inspection and process control, along with equipment and services designed to improve manufacturing productivity and yield.

Further Reading Five stocks we like better than Applied Materials Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge 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).

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Applied Materials (AMAT - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this maker of chipmaking equipment have returned -7.9%, compared to the Zacks S&P 500 composite's +1.5% change. During this period, the Zacks Electronics - Semiconductors industry, which Applied Materials falls in, has lost 8.3%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Applied Materials is expected to post earnings of $4.06 per share, indicating a change of +87.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $12.79 points to a change of +35.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $18.27 indicates a change of +42.9% from what Applied Materials is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Applied Materials.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Applied Materials, the consensus sales estimate of $10.3 billion for the current quarter points to a year-over-year change of +51.4%. The $34.25 billion and $45.64 billion estimates for the current and next fiscal years indicate changes of +20.7% and +33.3%, respectively.

Last Reported Results and Surprise HistoryApplied Materials reported revenues of $9.12 billion in the last reported quarter, representing a year-over-year change of +24.8%. EPS of $3.5 for the same period compares with $2.48 a year ago.

Compared to the Zacks Consensus Estimate of $9 billion, the reported revenues represent a surprise of +1.31%. The EPS surprise was +3.55%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Applied Materials is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Applied Materials. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Applied Materials just suffered one of its steepest drops in years, yet analysts keep raising their earnings estimates and some price targets sit nearly double the current share price. Here is what the disconnect reveals about where semiconductor equipment spending…

Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) is now priced at $409.29. The average analyst price target stands at $627.83, meaning 53.4% upside.

Applied makes the deposition, etch and inspection tools used to build virtually every new chip. AI infrastructure demand drove fiscal third-quarter revenue to $9.12 billion, up 24.8% year over year. Management guided the current quarter to about $10.25 billion.

The most bullish firms, including H.C. Wainwright and Susquehanna, have $900 targets. Those sit about 119.9% above the current price. Consensus upside stands above 40%.

Investor Day Silence Turned a Pullback Into a 37% Rout
The biggest hit came at Applied’s investor day, when the company declined to provide an industry spending forecast. Shares fell as much as 9% intraday, and the stock lost 19.28% over the past week. Since the start of July, Applied has dropped 37.05%. That leaves it 44.6% below its 52-week high of $738.88.

The first signs showed after the August earnings report. Shares fell about 4% even though guidance beat consensus. Morgan Stanley summed it up: “AMAT’s earnings were good, but not great.” Peers fell about 4% on investor day, so sector weakness made a company-specific hit worse.

33 of 40 Analysts Rate It a Buy as Estimates Climb
Of the 40 analysts who cover Applied, 4 rate it Strong Buy, 29 rate it Buy and 7 rate it Hold. None rate it Sell. Estimates rose while the stock fell. The fiscal 2027 EPS consensus is $18.4672, up from $16.7456 90 days ago. Over the past 30 days, analysts made three upward revisions and no cuts. The stock trades at about 22 times that figure.

Management guided fourth-quarter EPS to about $4.02. DRAM revenue, including HBM packaging, grew 52% year over year. Packaging revenue should grow more than 70% in calendar 2026. Leading-edge logic, DRAM and advanced packaging should account for about 80% of equipment growth.

The $900 camp argues that Applied is well placed in tools for Gate-All-Around transistors, backside power and HBM packaging. CEO Gary Dickerson set the timeline on the earnings call: “Based on the unprecedented visibility we’re receiving from our customers, we expect another strong record year in 2027.”

Lam, KLA and Teradyne Sold Off Too, but Applied Fell Hardest
The whole group fell over the past week, but Applied fell the most.

Lam Research (NASDAQ:LRCX) lost 14.74% to $263.94. Its average target is $375.81, meaning 42.4% upside. Twenty-nine of 35 analysts rate it Buy or Strong Buy.

KLA (NASDAQ:KLAC) dropped 12.82% to $165.74. Its target of $232.77 meaning 40.4% upside. Analysts are more cautious here, with 10 of 29 at Hold.

Teradyne (NASDAQ:TER) slid 15.33% to $325. Its target of $446.47 meaning 37.4% upside, and 12 of 17 analysts are bullish.

Applied has the largest consensus upside in the group. All of these targets are estimates, and they could fall if spending expectations drop.

A 59.83% Gain This Year Survives the Drawdown
Applied trades at $409.29. The average target from 40 analysts is $627.83, meaning 53.4% upside. Targets often lag sharp price moves, so treat that number as one input among several.

Even after the drop, the stock is up 59.83% year to date. The S&P 500 is up 11.93%. Over one year, Applied shares are up 80.75%.

Applied Materials Looks Like an Overcorrection Worth Researching
Applied Materials’ upside case strengthens if DRAM and leading-edge logic deliver the second-half surge management promised and fiscal 2027 earnings land near the $18.4672 consensus. At a forward P/E of about 23, that growth looks undervalued.

The upside story weakens if the investor day silence means equipment spending is peaking. Management claims multi-year visibility yet held back an industry forecast. China fell to 28% of revenue from 35%, and the Other segment’s loss widened to $118 million. A slowdown in AI capex would pull targets down toward the share price.

The data leans positive. Estimates are rising while the share price falls. Applied’s upside is also the largest of any peer. The next earnings report and its 2027 outlook will test that view. (We reverse-engineered what the biggest semiconductor winners looked like early on in a free guide you can download here.)

Contact [email protected] for any questions or corrections.

As the demand for artificial intelligence infrastructure continues to accelerate, investors often weigh the merits of equipment providers against those of chip designers. Choosing between Applied Materials (AMAT -6.18%) and Broadcom (AVGO -1.86%) requires a close look at two very different roles in the global supply chain.

Applied Materials provides the essential tools used to fabricate advanced chips, while Broadcom designs specialized silicon and infrastructure software. They are being compared because both are vital players in the artificial intelligence build-out, though they operate at different stages of the production cycle. This comparison evaluates their financial health and market positioning.

The case for Applied MaterialsApplied Materials sells the complex machinery that other companies use to build chips, serving major foundries and memory makers. The expansion of global data centers has kept semiconductor stocks at the center of many growth-focused portfolios. Applied Materials maintains a highly concentrated customer base, with two customers accounting for approximately 19% and 15% of net revenue in fiscal 2025. Customer concentration like this adds a layer of risk to the business, though it includes a deep partnership with Intel (INTC -6.60%) on next-generation manufacturing.

In fiscal 2025, revenue reached nearly $28.4 billion, an increase of 4.4% over the prior year. Net income was roughly $7 billion, which resulted in a net margin of close to 24.7%. This performance highlights the company's steady financial position in its latest annual report, filed for the period ending in late 2025.

As of its October 2025 balance sheet, the debt-to-equity ratio was roughly 0.3. The current ratio, which indicates the ability to pay short-term debts with short-term assets, was nearly 2.6. Free cash flow, which is cash flow from operations minus capital expenditures, was approximately $5.7 billion for the fiscal period.

The case for BroadcomBroadcom provides a mix of specialized chips and infrastructure software. Its chips are essential for cloud data centers and high-end smartphones, while its software segment offers cybersecurity and cloud infrastructure. The company maintains major agreements including a $200 billion memorandum of understanding with Samsung and a $30 billion chip commitment with Apple (AAPL +0.60%).

In fiscal 2025, revenue grew by about 23.9% to nearly $63.9 billion. The company reported net income of approximately $23.1 billion for the year, resulting in a net margin of roughly 36.2%. This was a significant increase in profitability compared to the net income reported in the prior year.

As of its November 2025 balance sheet, the debt-to-equity ratio was approximately 0.8, while its current ratio was nearly 1.7. Free cash flow reached roughly $26.9 billion for the year. Note that stock-based compensation accounted for roughly 27.5% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.

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Risk profile comparisonApplied Materials faces volatility inherent in the semiconductor industry and heavy geographic concentration. Nearly 89% of its revenue comes from outside the United States, making it sensitive to international trade shifts. Complex export controls, particularly regarding sales to China, remain a persistent challenge for the equipment maker. The company also paid a $252 million settlement in 2026 for export violations involving Semiconductor Manufacturing International.

Broadcom carries substantial indebtedness, which totaled nearly $67.12 billion as of late 2025. Its customer base is also highly concentrated, with a notable reliance on Alphabet for certain revenue streams. The company is navigating intense regulatory scrutiny, including antitrust challenges in the EU related to its VMware operations. Integration risks from large acquisitions and a legal dispute with AT&T (T +3.25%) also factor into its risk profile.

Valuation comparisonBroadcom is cheaper by forward P/E, which tracks future earnings estimates, while Applied Materials leads on P/S ratio, which measures market cap against 12-month sales.

MetricApplied MaterialsBroadcomForward P/E37.529.9P/S ratio12.418.7Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Broadcom looks kind of expensive to me here. Applied Materials seems relatively boring; 4.4% growth isn't anything to write home about, but I think the valuation reflects that. On the other hand, Broadcom stock has outperformed Applied Materials by over 400 percentage points over the past 10 years, so its elevated valuation may also be justified.

On the other, other hand, smart investors know past performance is no indication of future results, and as a naturally conservative investor, I look at these companies' vastly different market caps and wonder which has the room for more growth. My guess is Applied Materials isn't going to knock your socks off, but it's outpaced the S&P 500 handily over the past 10 years. Furthermore, Broadcom seems closer to a ceiling than Applied Materials; the law of large numbers will make it harder for the former to keep posting those impressive revenue growth rates. I prefer Applied Materials.

In the latest close session, Applied Materials (AMAT - Free Report) was down 3.79% at $446.63. The stock's change was less than the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.

Shares of the maker of chipmaking equipment have appreciated by 10.23% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.49%, and the S&P 500's gain of 2.06%.

The investment community will be paying close attention to the earnings performance of Applied Materials in its upcoming release. The company is slated to reveal its earnings on November 12, 2026. The company is forecasted to report an EPS of $4.06, showcasing a 87.1% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.3 billion, showing a 51.4% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.79 per share and a revenue of $34.25 billion, signifying shifts of +35.77% and +20.72%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. As of now, Applied Materials holds a Zacks Rank of #2 (Buy).

From a valuation perspective, Applied Materials is currently exchanging hands at a Forward P/E ratio of 36.3. This signifies no noticeable deviation in comparison to the average Forward P/E of 36.3 for its industry.

It is also worth noting that AMAT currently has a PEG ratio of 1.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Electronics - Semiconductors industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Applied Materials CEO Gary Dickerson says he expects revenue to double over the next few years. He notes that Applied Materials had opened a $5 billion research and development center in Silicon Valley to speed development of next-generation chips.

Applied Materials, Inc. (AMAT) SEMICON West 2026 October 13, 2026 11:00 AM EDT

Company Participants

Michael Sullivan - Corporate Vice President of Investor Relations
Gary Dickerson - President, CEO & Executive Director
Prabu Raja - President of Semiconductor Products Group
Keith Wells - Group Vice President of Imaging & Process Control Group
Timothy Deane - Senior Vice President of Applied Global Services
Brice Hill - Senior VP, CFO & Global Information Services

Conference Call Participants

Vivek Arya - BofA Securities, Research Division
Christopher Muse - Cantor Fitzgerald & Co., Research Division
Timothy Arcuri - UBS Investment Bank, Research Division
Atif Malik - Citigroup Inc., Research Division
Stacy Rasgon - Bernstein Institutional Services LLC, Research Division
Mark Lipacis - Evercore ISI Institutional Equities, Research Division
Sreekrishnan Sankarnarayanan - TD Cowen, Research Division
Christopher Caso - Wolfe Research, LLC
Yu Shi - Needham & Company, LLC, Research Division
Brian Chin - Stifel, Nicolaus & Company, Incorporated, Research Division

Presentation

Michael Sullivan
Corporate Vice President of Investor Relations

Well, good morning, everybody. I'm Mike Sullivan. I'm the Head of Investor Relations at Applied Materials. And once again, I have the honor of being the first to welcome you to SEMICON West. It's my pleasure. We really thank you all for being here. Applied has a very long tradition of hosting a technology breakfast at SEMICON. We've been doing it for years, and we've been looking forward to seeing you pretty much all year and spending time with you.

A big focus of this year's SEMICON, of course, is really understanding what is the state of the AI build-out and what does it mean for companies all across the entire technology ecosystem. And the figure of merit that everybody is focused on is tokens per second per watt. And when you look at today's presentations, what you'll see is that ultimately, AI -- every AI system and every AI chip depends on two ingredients, made of

Shares of semiconductor equipment supplier Applied Materials (AMAT -6.69%) sank on Tuesday, down 7.2% as of 3:53 p.m. EDT.

Applied Materials unveiled its $5 billion EPIC research center in Silicon Valley yesterday, a new facility meant to aid co-innovation with Applied's customers.

Today, Applied followed up on yesterday's event with an investor presentation. While the company painted a bullish picture of the future, the presentation omitted a key data point many investors would have liked to know. Given recent jitters over the sustainability of the AI build-out, it’s no wonder the limited disclosure triggered a sell-off.

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Applied projects some things to 2030, but not overall revenueAt today's investor breakfast, Applied touted its leadership across etch, deposition, e-beam metrology, and advanced packaging tools that will be critical to modern AI systems. In particular, Applied highlighted its leadership in tools for the DRAM, leading-edge logic, and advanced packaging sectors as underpinning growth, as these semiconductor sub-segments are set to benefit most from the growth of agentic AI.

Additionally, management advertised that artificial intelligence is making its operations more efficient, which should boost profitability.

Aside from the technology updates and presentations, CFO Brice Hill also gave guidance on a few financial metrics. Thanks to strong growth in the chip equipment sector, Applied expects its adjusted (non-GAAP) gross margin to expand to roughly 54% by 2030, with an operating margin of approximately 40%. In 2025, adjusted gross margin was 48.8%, while adjusted operating margin was 30.2%. So, the 2030 guidance would mark a strong five percentage point and 10 percentage point improvement, respectively, which is significant.

However, Applied didn't articulate how large its revenue will grow by that time. Instead, management disclosed only its anticipated market share gain and the growth in its services segment. Service revenue encompasses tool maintenance and a data service that helps customers improve yields.

By 2030, Applied expects to gain two percentage points of wafer front-end equipment (WFE) market share. Meanwhile, it also projects services revenue to grow to "over" $12 billion. Last year in fiscal 2025, Applied Global Services amounted to roughly $6.4 billion.

This figure may have alarmed investors. If overall revenue grows in line with service revenue, that may have disappointed some investors hoping for more than a "mere" doubling over five years.

Image source: Getty Images.

The panic may be overdone, thoughApplied Materials made about $28.4 billion in total revenue in fiscal 2025. Should that revenue "only" double to about $57 billion, Applied would generate about $22.8 billion in operating income. With a market cap of around $363 billion today, that implies a 17x multiple on 2030 operating income. Of course, Applied is also repurchasing stock with its ample cash flow, so its shares outstanding would also likely be lower by then.

Still, while certainly not expensive, investors may be expecting a lot more, given that these figures would take four years to manifest.

On the other hand, companies usually guide relatively conservatively when giving projections over multiple years, and management did say services revenue would be "greater" than $12 billion. It’s also possible that equipment sales grow faster than service revenue.

So, Applied may generate significantly more revenue and profits than that baseline projection. However, investors who had been excited by the possibilities of the AI build-out may have taken profits on today's "disappointing" projection.

 | Source: Applied Materials, Inc.

Company expects strong multi-year growth as global AI infrastructure buildout fuels demand for leading-edge foundry-logic, DRAM and advanced packaging – areas where Applied has built market leadershipExpects wafer fab equipment (WFE) spending to grow faster through 2030 than over the past decade; targets more than 2 percentage points of WFE share gain from calendar 2025 to 2030Targets higher profitability through 2030 with non-GAAP gross margin target of approximately 54 percent and non-GAAP operating margin target of approximately 40 percentCommitted to distribute 80 to 100 percent of free cash flow to shareholders over time SAN FRANCISCO, Oct. 13, 2026 (GLOBE NEWSWIRE) -- At its 2026 SEMICON West Investor Breakfast Presentation held today, Applied Materials, Inc. presented its longer-term growth expectations and outlined how its leadership in materials engineering positions the company to outperform the wafer fab equipment (WFE) market over the coming years.

“The global buildout of AI infrastructure is driving a new era of growth for wafer fab equipment,” said Gary Dickerson, President and CEO of Applied Materials. “Applied Materials has built leadership in the fastest growing areas of the market that have the greatest impact on AI computing performance, power efficiency and cost, and our advanced services offerings enable chipmakers to increase yield and fab output. Our industry-leading capabilities position Applied for continued growth and outperformance in the years ahead.”

The race for AI computing leadership requires tremendous technology innovation and capacity expansion to support infrastructure scaling, which is fueling sustained WFE investments – bigger than any of the industry’s past growth drivers. The growth and diversity of AI applications from generative to agentic and physical AI require increasing amounts of silicon. Applied expects leading-edge foundry-logic, DRAM and advanced packaging to drive around 75 percent of WFE growth from 2025-2030. Applied has strong number-one process equipment positions in all three areas and is targeting to gain more than 2 percentage points of WFE market share from calendar 2025 to 2030.

To support the industry’s capacity expansion, Applied is utilizing its unique eBeam technology and advanced service solutions to help chipmakers accelerate the ramp of new process nodes and optimize yield, output and cost in high-volume manufacturing. With the industry’s highest resolution and fastest imaging capabilities, Applied’s eBeam equipment portfolio is expected to generate $2 billion in revenue in calendar year 2026. The company is expecting service revenue to grow more than 20 percent this calendar year and to exceed $12 billion in revenue by calendar year 2030, representing a mid-teens compound annual growth rate.

“For the past 10 years, Applied Materials has been making strategic investments to build the industry’s most enabling portfolio for AI computing,” said Brice Hill, Senior Vice President and CFO. “As AI drives wafer fab equipment growth, we are focused on further increasing profitability and operating leverage while investing in R&D programs that will fuel our outperformance into the future.”

Based on the company’s expectations for semiconductor industry growth, Applied is investing to more than double its R&D lab and manufacturing capacity from current levels by 2030. The company yesterday unveiled its new Equipment and Process Innovation and Commercialization (EPIC) Center in Silicon Valley, the world’s largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. To date, Applied has announced 15 EPIC Center partnerships with leading chipmakers, systems companies, equipment partners and universities. Applied has also recently expanded its manufacturing infrastructure in Austin, Texas, Singapore and Treviso, Italy.

Non-GAAP Financial Measures
Forward-looking non-GAAP gross margin and non-GAAP operating margin targets for 2030 assume non-GAAP adjustments as applicable for future periods, which we are unable to predict without unreasonable efforts due to their inherent uncertainty. Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less capital expenditures. Management uses non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied’s ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, the plans and expectations for the EPIC Center, our business outlook, expectations for our financial performance for calendar year 2026, our business and financial targets for 2030, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; global trade issues, changes in trade and export regulations, license requirements, and their interpretation, and our ability to obtain licenses or authorizations on a timely basis, if at all; changes in tariffs, any retaliatory measures, and our ability to mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers' ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting us or our suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

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 (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

The artificial intelligence boom has transformed the technology landscape, leaving investors to choose between the companies that design powerful chips and the ones that provide the machinery to build them. Should you buy Applied Materials (AMAT -1.87%) or Advanced Micro Devices (AMD -2.28%)?

Applied Materials is a titan in the equipment space, selling the tools required to fabricate complex semiconductors. Advanced Micro Devices focuses on the architecture itself, designing high-performance processors for servers and PCs. Both companies sit at the heart of the digital economy, but they offer different paths to growth for investors.

The case for Applied MaterialsApplied Materials provides the specialized machinery, software, and services used to manufacture chips and displays. Its global reach includes a massive footprint in China, Taiwan, and Korea, where it serves the world's largest chipmakers. In October 2026, the company expanded its partnership with Intel (INTC -3.20%) to focus on hardware for the semiconductor stocks market. However, its customer base is highly concentrated, with two major clients accounting for roughly 19% and 15% of revenue in fiscal 2025. Customer concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached nearly $28.4 billion, representing growth of approximately 4.4% compared to the prior year. The company reported net income of close to $7.0 billion for the same period. This resulted in a net margin of roughly 24.7%, which measures the percentage of revenue remaining as profit after all expenses are paid.

As of its October 2025 balance sheet, the debt-to-equity ratio was roughly 0.3x. This metric compares total debt to the value of shareholder equity, with lower numbers suggesting a conservative financial structure. The current ratio, which measures a company's ability to cover short-term debts with assets that can be converted to cash quickly, was approximately 2.6x. Free cash flow for the year reached nearly $5.7 billion, representing the cash a business generates after accounting for the costs required to maintain or expand its physical assets.

Advanced Micro Devices designs high-performance computing and graphics products for data centers, gaming, and PCs. In October 2025, the company secured a multiyear strategic partnership with OpenAI to deploy Instinct GPUs at significant scale. It also maintains ongoing collaborations with Sony and Microsoft (MSFT +1.14%) for semi-custom chips used in game consoles. The company relies on a small number of customers for a substantial portion of its revenue, including hyperscale data centers and original equipment manufacturers.

In FY 2025, revenue surged to approximately $34.6 billion, a significant increase of roughly 34.3% over the previous year. Net income for the period reached close to $4.3 billion. The company achieved a net margin of nearly 12.5%, indicating how much profit it generates from its total sales.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.1x. The current ratio is nearly 2.9x, suggesting the company maintains a robust cushion to meet its immediate financial obligations. Free cash flow for the fiscal year reached close to $6.7 billion. Note that stock-based compensation represented roughly 21.2% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparisonApplied Materials faces exposure to evolving export controls, particularly regarding semiconductor technology sales to China, which require complex and costly license acquisitions. High customer concentration increases volatility if major clients reduce spending or face liquidity issues. The semiconductor industry is also highly cyclical and remains sensitive to broader economic shifts. Furthermore, the company faces a $252 million settlement for export violations involving Semiconductor Manufacturing International Corp.

Advanced Micro Devices faces intense competition from established players like Intel and Nvidia (NVDA -1.29%). It relies heavily on third-party manufacturers, primarily Taiwan Semiconductor Manufacturing Company (TSM -1.98%), for wafer fabrication. Export restrictions on advanced semiconductor products to China have necessitated significant inventory charges and threaten to limit future market access. Security vulnerabilities in its hardware products could also result in reputational damage or costly remediation efforts.

Valuation comparisonApplied Materials trades at a lower multiple of future earnings estimates than its rival, potentially appealing to those looking for a more established valuation. The Forward P/E ratio compares the current stock price to future earnings estimates, while the P/S ratio measures the market value of the company relative to its sales over the past twelve months.

MetricApplied MaterialsAdvanced Micro DevicesForward P/E39.6x79.6xP/S ratio13.1x24.0xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?I'd go with AMD, and honestly it is not a close call right now. In Q2 2026, AMD's data center revenue more than doubled year over year, its partnership with Anthropic signals demand that stretches well beyond the current quarter, and the company has posted six consecutive quarters of above-30% growth. AMD is cementing its position as the primary alternative to Nvidia in the AI chip market, and that is a powerful place to be.

Applied Materials is a well-run business that keeps benefiting as chip complexity grows. In its most recent quarter, AI-driven demand for advanced semiconductor equipment kept orders healthy and the outlook was positive. For investors who want diversified exposure to the chip manufacturing build-out without betting on any single end market, it is a solid choice.

But there is a difference between benefiting from a trend and being at the center of it. AMD is competing directly for the biggest prize in semiconductors right now, and the results keep arriving ahead of expectations.

$5 billion investment creates the world’s largest semiconductor equipment and process technology R&D facilityPurpose-built to accelerate the path from breakthrough innovation to high-volume manufacturing of next-generation chipmaking technologiesLeading chipmakers, systems companies, equipment partners and research universities have committed to develop inside EPIC
SUNNYVALE, Calif., Oct. 12, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc., the leader in materials engineering for the semiconductor industry, today unveiled its Equipment and Process Innovation and Commercialization (EPIC) Center, a $5 billion capital investment* to build the world’s largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. Inside the EPIC Center, leading chipmakers, systems companies, equipment partners and university researchers will work side by side with Applied’s scientists and engineers to accelerate the pace of chip innovation for the AI era.

“As AI infrastructure scales, the demands of high-performance computing are driving unprecedented complexity across the chipmaking roadmap,” said Gary Dickerson, President and CEO of Applied Materials. “To win the race for AI leadership, our industry must rethink and re-engineer how we collaborate to develop and commercialize the next generation of semiconductor technologies. At EPIC, the world’s leading chipmakers, system designers, equipment partners and researchers will work side by side with our teams to accelerate the path from breakthrough materials innovation to high-volume manufacturing faster than ever before.”

Purpose-Built to Accelerate Innovation and Commercialization

Unveiled today at Applied’s Sunnyvale, California, campus, the EPIC Center represents one of the most complex R&D construction projects in the world. The 600,000-square-foot structure houses nearly four acres of advanced cleanroom space and required more than six million construction hours to complete. Its foundation holds enough concrete to fill 34 Olympic-sized swimming pools, and its steel-reinforced structure holds enough steel to build two Eiffel Towers. Thirty-four roof trusses cover the cleanrooms, each spanning nearly 300 feet in length and weighing as much as 12 school buses.

EPIC is designed to reinvent the R&D model the industry has relied on for decades. In the traditional model, foundational materials research happens in one environment, equipment and process development in another, and process integration and pilot production in a third, with a careful handoff at every phase. The EPIC Center is designed to remove these handoffs, putting the people who invent the materials, build the equipment, and make the chips together in a state-of-the-art facility purpose-built for commercialization.

EPIC is founded on a simple conviction: the technologies the AI era demands are too complex and too consequential for any one company to invent alone. The EPIC Center opens with a founding roster that spans the AI technology stack. Founding partners TSMC, Intel, Samsung Electronics, Micron and SK hynix are joined by innovation partners Broadcom, Advantest, SCREEN, KIOXIA, and Besi; and by research partners Arizona State University, Rensselaer Polytechnic Institute, Stanford University, UC Berkeley, and UCLA Samueli School of Engineering. Each partner brings its own roadmap challenges and engineers into the facility, working in tight, secure learning cycles alongside Applied teams. Over time, additional companies and organizations are expected to join the EPIC ecosystem.

Leaders from many of the EPIC Center partner companies attended the unveiling event, getting a first glimpse inside the facility. The day started with a summit hosted by Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials, where R&D leaders from top semiconductor design, manufacturing and equipment companies discussed key challenges facing growth and progress in the global chip industry.

“Materials innovation has outgrown serial development – at today’s atomic-scale dimensions, many materials and materials interfaces behave in entirely new ways, and making them work at industry scale demands coordinated development and integrated solutions,” said Dr. Prabu Raja. “EPIC is the only place where materials, process technology and equipment will be innovated in parallel, which increases the success rate of new materials and technologies. Because our customers’ own engineers help optimize the technology before it ever reaches their factory, what leaves EPIC arrives at the fab ready to ramp to high performance and high yield sooner.”

Applied expects the EPIC operating model to deliver returns on both sides of the partnerships. Chipmakers gain earliest access to next-generation materials and equipment, shorter learning cycles and a faster path to volume production. Applied gains visibility across several generations of emerging technology challenges, informing where the company directs its R&D investments to create value for customers and have its systems and services designed in.

Supporting Quotes from Industry and Academic Leaders

“For three decades, TSMC and Applied Materials have grown together – pushing the boundaries of semiconductor technology through every major transition. Thirty years ago, the leading-edge production node was 350 nanometers. Today, it is 2 nanometers. Working hand-in-hand with the industry, we have shrunk features 175-fold. As chipmaking complexity grows exponentially, our partnership is more vital than ever. Beyond 2nm, collaborating with Applied gives us early access to the disruptive equipment technologies that define the future. This fast-tracks the leap from R&D to high-volume manufacturing for the energy-efficient AI architectures of tomorrow – including new architecture, low-resistance wiring, and advanced packaging. We are proud to be a founding partner of EPIC, accelerating the innovations that will power AI from the data center to the edge.” – Dr. C.C. Wei, Chairman and CEO of TSMC

“AI is creating a multi-trillion-dollar opportunity for the semiconductor industry. To capture it, we need continued innovation in transistors, interconnects and advanced packaging. At Intel, we see a path to more than a trillion transistors in a package by 2030. As architectures become more complex and R&D costs continue to rise, we need to move faster and work more closely with our equipment partners. EPIC gives our teams the opportunity to work side by side with Applied on materials and process innovation – helping us accelerate development, improve R&D efficiency and bring new technologies to market faster.” – Lip-Bu Tan, CEO, Intel

“Data-intensive AI workloads are driving massive demand for high-performance memory and storage, and innovation in materials and process technology is a critical enabler of next-generation memory. As a founding partner of EPIC, Micron will work side by side with Applied Materials to accelerate innovation and bring next-generation memory technologies from research to high-volume manufacturing at scale.” – Sanjay Mehrotra, Chairman and CEO, Micron Technology

“Samsung takes an end-to-end view of AI-era computing – across leading-edge logic, memory and advanced packaging. Applied Materials brings uniquely broad process equipment leadership across all three domains, and at EPIC together we will develop, iterate and deploy breakthrough technologies faster than ever, at the pace AI scaling demands.” – Jaihyuk Song, Chief Technology Officer (CTO) of Device Solutions Division, Samsung Electronics

“The defining challenge of AI computing is moving data fast enough to keep increasingly powerful processors fully utilized, and meeting that challenge requires memory with far greater bandwidth, speed and capacity. At EPIC, SK hynix and Applied will bring together our leadership in advanced memory with Applied’s leadership in materials engineering and semiconductor manufacturing technology to address major inflections across HBM, DRAM and NAND, and accelerate memory innovation for the AI era.” – Nohjung Kwak, President and CEO of SK hynix

“The next frontier of AI will be defined by how seamlessly the industry can integrate vast amounts of compute, memory and connectivity into high-performance systems, and that depends on breakthrough advances in advanced packaging. As an innovation partner at EPIC, Broadcom can engage earlier with Applied’s foundational technologies and manufacturing capabilities, connecting future system requirements to the packaging innovations needed to realize them and accelerating the path from concept to commercialization.” – Charlie Kawwas, Ph.D., President of Semiconductor Solutions Group, Broadcom

“Future performance improvements will depend on advanced 3D architectures and heterogeneous integration. As these technologies converge, it becomes increasingly important to connect insights from front-end process development with those from back-end test and measurement. EPIC breaks down these traditional barriers by bringing together Applied Materials’ leadership in materials engineering and process control with Advantest's leadership in semiconductor test and measurement, including capabilities enabled through the Advantest Innovation Center. Together, we are helping the world’s leading semiconductor manufacturers improve yield, accelerate production ramps, and bring next-generation AI systems to market faster.” – Doug Lefever, Representative Director and Group CEO, Advantest Corporation

“At EPIC, we have a unique opportunity to co-optimize the critical wet and dry processes behind next-generation chip architectures. We can together accelerate the innovations required to master increasingly complex 3D devices and advanced packaging structures. By driving tighter process integration with materials engineering, we can help chipmakers unlock higher yields, faster production ramps, and the manufacturing scale required for the AI future.” – Masato Goto, President and CEO, SCREEN Holdings Co., Ltd.

“AI is making the world increasingly data-driven, and future breakthroughs will depend on memory, logic, and interconnect technologies working seamlessly within integrated systems. We believe the EPIC Center provides a powerful platform for collaboration across technology domains. By working closely with Applied Materials engineers and other partners, we can accelerate the development of next-generation memory technologies.” – Hideshi Miyajima, Ph.D., Managing Executive Officer and Chief Technology Officer, KIOXIA Corporation

“The future of AI depends not only on more powerful chips, but on the chip-to-chip interconnects that drive performance, bandwidth and power efficiency. Besi and Applied recognized early that hybrid bonding would be foundational to next-generation AI systems, and by combining Besi’s leadership in precision die-to-wafer bonding with Applied’s leadership in front-end processing, we are advancing hybrid bonding technology to enable future high-performance 3D integrated devices. EPIC extends that model of high-velocity co-innovation across the ecosystem, accelerating the technologies that will shape future AI systems.” – Richard Blickman, President and CEO, BE Semiconductor Industries (Besi)

“ASU has developed a very strong working relationship with Applied Materials through the Materials-to-Fab Center at ASU Research Park, and we are excited to dig deeper into this partnership at the EPIC Center, where researchers, engineers and manufacturers converge to accelerate bold ideas from the lab to breakthroughs in the fab. EPIC will also serve as a cornerstone for the semiconductor talent pipeline and by working alongside Applied’s scientists and engineers, our students will gain the systems-level perspective needed to drive the future of AI innovation.” – Michael Crow, President, Arizona State University

“UC Berkeley has helped shape microelectronics from its earliest days, advancing the research and talent that continue to propel the semiconductor industry, and our collaboration with Applied Materials is a great example of how academia and industry must work together to meet the scale and opportunity of what’s ahead. The EPIC platform gives our researchers access to the same cutting-edge capabilities used by the world’s leading chipmakers, within a manufacturing-relevant environment, so ideas can be tested, refined and transformed much faster into the semiconductor breakthroughs that will advance the frontier of AI.” – Rich Lyons, Chancellor, UC Berkeley

“Many of the technologies powering today’s AI revolution began in university labs years, often decades, before they transformed the world. As computing demand increases, we must accelerate the pace at which new semiconductor materials, devices and integration technologies move from discovery to deployment. As an inaugural research partner at the EPIC Center, RPI’s students and researchers gain access to world-class experts and a direct pathway to test and validate academic advances in real-world production environments – a powerful blueprint for high-velocity industry-academia collaboration in the AI era.” – Martin Schmidt, President of RPI

“The explosive growth of AI is pushing semiconductor technology researchers to find new ways to increase energy efficiency of semiconductor chips. Opportunities abound in discovering new materials and inventing new devices. Experimentation demands faster cycles of innovation and closer collaboration across the ecosystem. Beyond the existing broad research engagement between Stanford faculty and Applied Materials, the EPIC Center presents an additional opportunity that enables our students and researchers to engage directly with industry-scale tools and experts, accelerating discovery while gaining the industry-relevant experience needed to lead future advances in semiconductor manufacturing.” – H.S. Philip Wong, Willard R. and Inez Kerr Bell Professor in the School of Engineering, Stanford University

“Accelerating semiconductor innovation in the new era of AI requires transformative collaboration between universities and industry partners more than ever before. UCLA has a long history of pioneering semiconductor research and innovation, and our collaboration with Applied Materials at the EPIC Center builds on that legacy by bringing together university research and industry expertise to advance the chip technologies that will define the future of computing while preparing the next generation of engineers.” – Ah-Hyung “Alissa” Park, Ronald and Valerie Sugar Dean of UCLA Samueli

*Capital spending is expected to scale over time to approximately $5 billion as customer projects commence.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding Applied’s investment and growth strategies, the development of new materials and technologies, industry outlook and technology requirements, the plans and expectations for the EPIC Center, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the demand for semiconductors and customers’ technology requirements; the ability to develop new and innovative technologies; the ability to obtain and protect intellectual property rights in key technologies; the ability to achieve the objectives of the EPIC Center; and other risks and uncertainties described in Applied’s filings with the Securities and Exchange Commission, including Applied’s most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and Applied assumes no obligation to update them.

About the EPIC Center
The EPIC Center (Equipment and Process Innovation and Commercialization) is Applied Materials’ flagship R&D facility in Silicon Valley, designed to compress the timeline from early-stage materials research to high-volume semiconductor manufacturing. By bringing chipmakers, equipment partners and university researchers into the same building as Applied’s scientists and engineers, EPIC enables parallel rather than sequential development of materials, equipment and process technology, shortening learning cycles and accelerating the commercialization of the innovations that will power the AI era. Learn more at www.appliedmaterials.com/us/en/epic.html.

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.

Contacts:
Applied Materials
Ricky Gradwohl (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

The AI boom puts Applied Materials (AMAT -1.87%) and SK Hynix (SKHY -3.70%) at the center of the chip race. Choosing between the equipment giant and the memory leader depends on your goals for 2026.

Applied Materials provides the essential tools used to build semiconductors, while SK hynix produces the memory chips that store and move data. Both companies are critical to the global supply chain, yet they operate in different niches. This comparison explores their financial health and market positions to help you determine which stock better fits your strategy.

The case for Applied MaterialsApplied Materials leads the materials engineering sector by providing the equipment and services required to deposit, shape, and analyze materials with atomic precision for chipmaking. It recently expanded its collaboration with Intel (INTC -3.28%) to advance AI technologies and maintains a strategic partnership with TSMC to meet growing foundry demand. Two specific partners account for approximately 19% and 15% of revenue, and such customer concentration adds a layer of risk to the business.

In FY 2025, revenue reached nearly $28.4 billion, representing a growth of roughly 4.4% as the company benefited from increased demand for logic and foundry equipment. Net income for the period was approximately $7.0 billion, resulting in a net margin of close to 24.7%. This figure reflects a slight decrease from the 26.4% net margin recorded in FY 2024, yet it remains significantly higher than the levels seen in FY 2023.

As of its October 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x, calculated as total debt (short-term plus long-term) divided by shareholders' equity. The current ratio is roughly 2.6x, indicating the company can comfortably cover its short-term liabilities with current assets. Free cash flow, calculated as cash from operations minus capital expenditures, reached nearly $5.7 billion for the fiscal year.

The case for SK HynixSK Hynix focuses on the memory side of the industry, producing the DRAM and NAND Flash components essential for modern data storage and processing. As the artificial intelligence boom continues to fuel demand for semiconductor stocks, the company is pursuing a "Full Stack AI Memory" strategy. This approach focuses on high-bandwidth memory and next-generation storage for data centers to capture a larger share of global digital infrastructure spending.

In FY 2025, revenue reached nearly $72.5 billion, representing a massive growth of approximately 46.8% as the company capitalized on a recovery in memory prices. Net income for the same period was close to $32.1 billion, resulting in a net margin of roughly 44.2%. This performance is a sharp recovery from FY 2023, when the company reported a significant net loss during a memory market downturn.

As of its December 2025 balance sheet, the company has a debt-to-equity ratio of nearly 0.2x, calculated as total debt (short-term plus long-term) divided by shareholders' equity. The current ratio is approximately 1.9x, indicating the company's ability to pay its immediate debts using its current assets. Free cash flow for the year totaled nearly $18.5 billion, defined as cash from operations minus capital expenditures.

Risk profile comparisonApplied Materials faces significant risks related to export controls and trade regulations, particularly concerning shipments of advanced equipment to China. The company recently settled a $252 million penalty for unauthorized exports to Semiconductor Manufacturing International Corporation and remains under government scrutiny. Furthermore, its business is highly cyclical and sensitive to the spending plans of a small number of major chipmakers.

SK Hynix operates in the volatile memory market, where prices for products like DRAM can fluctuate wildly based on global supply and demand. It faces intense competition from rivals such as Samsung Electronics and Micron Technology, which are also scaling up production for high-growth AI applications. If these competitors create a market glut, it could lead to lower prices and compress the company's net margin.

Valuation comparisonSK Hynix appears significantly cheaper based on future earnings estimates, while Applied Materials trades at a premium relative to sales over the past 12 months. Forward P/E measures price against future earnings estimates, while the P/S ratio compares market value to sales over the past twelve months.

MetricApplied MaterialsSK hynixForward P/E40.7x7.0xP/S ratio13.4x9.0xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

When comparing Applied Materials and SK Hynix, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.

First, there's growth. Both companies are growing fast, but SK Hynix is a true outlier. It has averaged 50% year-over-year revenue growth over the last five years. In its most recent quarterly report, the company delivered a stunning 233% growth rate. Applied Materials, by contrast, has averaged 8% revenue growth, with its most recent report showing 25%.

Another factor to consider is each company's valuation. Here again, SK Hynix can claim an edge. On a forward price-to-earnings (P/E) basis, SK Hynix has a valuation multiple of 7x, while Applied Materials has a 41x multiple. In short, by this measure, SK Hynix is roughly 6 times cheaper than Applied Materials.

Last, there's profitability. When it comes to profitability, the comparison can get complicated. Overall, Applied Materials has delivered steady, solid profits. Its operating margin has averaged 30% over the last five years. SK Hynix, by contrast, has averaged around 21%. However, that average is dragged down by years of losses in 2023 and 2024. Since 2025, SK Hynix has maintained a higher operating margin than Applied Materials, and in recent quarters, it has soared to well over 50%.

In summary, it's appropriate for growth-oriented investors to give both of these stocks strong consideration. However, in a head-to-head matchup, SK Hynix comes out ahead due to its superior growth rate, lower forward P/E multiple, and excellent operating margin.

Global chip equipment spending is surging toward $144 billion, yet one of the industry's biggest names is growing at a fraction of its rivals' pace, putting its long-term position in the market under serious pressure.

Worldwide wafer fabrication equipment spending is projected to increase 23.1% to $143.9 billion in 2026, following a record $116.9 billion in 2025 Applied Materials’ global equipment market share declined from 20.0% in 2024 to 17.9% in 2025, while Lam Research, KLA and ASML gained share Applied Materials’ equipment revenue increased only 1.0% during the first half of 2026, compared with double-digit growth at its three major competitors, raising questions about its ability to recover market share Applied Materials Faces a Market Share Challenge The global semiconductor equipment industry is experiencing another major expansion, supported by artificial intelligence infrastructure investment, high-bandwidth memory, advanced logic manufacturing and increasingly complex semiconductor architectures. Worldwide wafer fabrication equipment (WFE) sales are projected to increase 23.1% to $143.9 billion in 2026, following a record $116.9 billion in 2025. The forecast reflects continued investment in the manufacturing technologies required to support the next generation of semiconductor devices.

However, the expansion is not benefiting every equipment manufacturer equally. Applied Materials (AMAT | AMAT Price Prediction), historically one of the industry’s largest and most diversified suppliers, has experienced a significant deterioration in its global market share. Its competitors, including Lam Research (LRCX), KLA (KLAC) and ASML (ASML), have demonstrated substantially stronger revenue growth during the latest first-half comparisons.

According to proprietary data from The Information Network, Applied Materials’ global WFE market share declined from 20.0% in 2024 to 17.9% in 2025, representing a loss of 2.1 percentage points. During the same period, Lam Research increased its share from 9.1% to 11.2%, KLA advanced from 7.9% to 8.2%, and ASML recovered from 22.4% to 23.0%.

The concern for investors is that Applied Materials’ equipment revenue increased only 1.0% during the first half of 2026 compared with the corresponding period in 2025. This contrasts sharply with the growth recorded by its major competitors and raises questions about whether Applied Materials can participate proportionately in the industry’s projected expansion.

The distinction is particularly important because the five largest semiconductor equipment manufacturers collectively account for a substantial majority of global WFE revenue. Their combined revenue is projected to increase from approximately $83.2 billion in 2025 to $113.6 billion in 2026, representing growth of approximately 36.5%. This is considerably faster than the projected 23.1% expansion of the worldwide market, suggesting that the industry’s largest suppliers could collectively increase their market share.

For Applied Materials, however, the question is whether its own revenue performance will improve sufficiently to participate in that shift.

A Continuing Shift in Semiconductor Equipment Market Share Applied Materials’ market share deterioration is not an isolated development. Its global WFE market share reached 22.2% in 2016, declined to 18.1% in 2019, and subsequently recovered to approximately 20.0% in 2022. That recovery has not been sustained, with its share falling to 17.9% in 2025.

The recent decline is particularly significant because the semiconductor equipment market has benefited from increased investment in advanced logic, memory and packaging technologies. Applied Materials participates in many of these markets through deposition, materials engineering, ion implantation and other process technologies. Nevertheless, its overall market share performance indicates that its revenue growth has not consistently matched the industry’s expansion.

According to Table 1, Applied Materials’ global WFE market share remained approximately stable between 2023 and 2024 before declining sharply in 2025. Lam Research experienced the opposite trajectory, increasing from 8.5% in 2023 to 11.2% in 2025. KLA also gained share, while ASML recovered in 2025 after declining in 2024. The 2026 projections illustrate the market share recovery that would be possible if the manufacturers achieve their respective full-year revenue forecasts.

Table 1. Global Semiconductor Equipment Market Share, 2023–2026 Company 2023 2024 2025 2026 Forecast Applied Materials (AMAT) 19.9% 20.0% 17.9% 20.4% Lam Research (LRCX) 8.5% 9.1% 11.2% 13.2% KLA (KLAC) 7.4% 7.9% 8.2% 8.3% ASML (ASML) 24.2% 22.4% 23.0% 25.2% Source: The Information Network. Historical market shares through 2025; 2026 projections calculated from supplied company revenue growth forecasts and worldwide WFE growth of 23.1%. The projected improvement in Applied Materials’ market share from 17.9% in 2025 to 20.4% in 2026 would require a substantial acceleration in its equipment revenue growth. Its full-year revenue projection assumes approximately 40% growth, a sharp contrast with the 1.0% increase recorded during the first half of 2026.

This difference between projected annual growth and actual first-half performance is central to evaluating the company’s outlook. The market share forecast demonstrates what Applied Materials could achieve under a strong recovery scenario, but its recent revenue performance provides limited evidence that such an acceleration is already underway.

The forecasts also indicate that the largest equipment manufacturers could capture a greater proportion of worldwide spending. However, these projections depend on the companies achieving their respective revenue targets and on maintaining consistent definitions between reported equipment revenue and the global WFE market.

First-Half 2026 Revenue Growth Reinforces the Competitive Divergence The competitive differences become more apparent when examining semiconductor equipment revenue growth during the first halves of 2025 and 2026.

Applied Materials’ equipment revenue increased 8.7% during the first half of 2025 compared with the corresponding period in 2024. However, its full-year 2025 equipment revenue increased only approximately 2%, coinciding with its 2.1-percentage-point market share decline.

During the first half of 2026, Applied Materials’ equipment revenue growth slowed further to just 1.0%. In contrast, Lam Research, KLA and ASML continued to report substantially stronger growth.

According to Table 2, Lam Research’s equipment revenue increased 23.3% during the first half of 2026, compared with 12.6% for KLA and 13.3% for ASML. The three manufacturers averaged 16.4% growth, substantially exceeding Applied Materials’ performance.

Table 2. Semiconductor Equipment Revenue Growth, First-Half Comparisons Company 1H 2025 vs. 1H 2024 1H 2026 vs. 1H 2025 Applied Materials (AMAT) +8.7% +1.0% Lam Research (LRCX) +41.8% +23.3% KLA (KLAC) +30.7% +12.6% ASML (ASML) +30.1% +13.3% Competitor Average +34.2% +16.4% Source: The Information Network. Competitor average represents the unweighted average of Lam Research, KLA and ASML Although revenue growth slowed across all four manufacturers, Applied Materials’ performance remained substantially weaker than that of its competitors. Its first-half 2026 growth was only a small fraction of the increases recorded by Lam Research, KLA and ASML.

This divergence raises questions about the assumptions underlying the company’s projected full-year recovery. If Applied Materials is to increase its equipment revenue approximately 40% in 2026, its second-half performance would need to accelerate dramatically from the first-half growth rate.

That acceleration is mathematically possible, particularly if equipment shipments and customer investments are heavily weighted toward the latter part of the year. However, investors should distinguish between a forecast that assumes strong second-half growth and evidence that such growth is materializing.

The company’s recent market share deterioration also illustrates the consequences of falling behind the overall industry. Applied Materials lost 2.1 percentage points of global WFE share in 2025 despite reporting positive equipment revenue growth. If its 2026 performance remains below the projected 23.1% expansion of worldwide WFE spending, further market share erosion would follow.

Why Lam Research, KLA and ASML Are Better Positioned The semiconductor equipment market is undergoing a structural transition as chipmakers adopt gate-all-around transistors, advanced DRAM architectures, higher-layer-count 3D NAND and increasingly sophisticated packaging technologies. These developments increase the importance of specific manufacturing processes, creating opportunities for suppliers with strong positions in those categories.

Lam Research benefits from growing etch and deposition requirements in advanced memory and logic manufacturing. Increasing NAND layer counts, more demanding DRAM structures and new transistor architectures require sophisticated processing technologies. Lam’s global WFE market share increased from 8.5% in 2023 to 11.2% in 2025, demonstrating its ability to capture a larger portion of equipment spending. Its first-half 2026 revenue growth of 23.3% also provides evidence of continued competitive momentum.

KLA benefits from the increasing importance of semiconductor inspection, metrology and process control. Advanced manufacturing requires tighter process tolerances and more sophisticated defect detection to maintain acceptable yields. KLA’s global market share increased from 5.9% in 2018 to 8.2% in 2025, reflecting the growing importance of these capabilities. Its competitive position becomes increasingly valuable as semiconductor structures become more difficult to manufacture.

ASML occupies a different position through its dominance in extreme ultraviolet lithography. The transition toward advanced logic nodes increases demand for sophisticated lithography systems, supporting ASML’s long-term growth. Its global WFE market share increased from 15.5% in 2015 to 23.0% in 2025, although annual results fluctuate with equipment delivery schedules and customer investment.

Applied Materials also participates in many of the technologies driving equipment demand. Its deposition, materials engineering and other process technologies remain essential to semiconductor manufacturing, while advanced packaging provides additional opportunities. Nevertheless, the company’s recent revenue performance suggests that these opportunities have not yet translated into growth comparable to that of its principal competitors.

For investors, the distinction between participation in growing markets and capturing a larger share of those markets remains critical. Companies with strong positions in the most rapidly expanding manufacturing processes may benefit disproportionately from the current equipment investment cycle.

China’s Domestic Equipment Expansion Adds Competitive Pressure Applied Materials also faces growing competition from Chinese semiconductor equipment manufacturers, which are expanding their presence in deposition, etch, cleaning and other manufacturing processes.

According to The Information Network, six leading Chinese equipment manufacturers recorded average first-half 2026 revenue growth of 35.6%, compared with 11.4% for seven major non-Chinese manufacturers. These figures represent unweighted company averages rather than aggregate market growth rates, but they illustrate the momentum of China’s domestic equipment industry.

Piotech recorded first-half revenue growth of 49.1%, followed by Hwatsing at 35.6%, ACM Research at 35.2%, AMEC at 34.9%, Skyverse at 34.0% and NAURA at 24.9%. Their expansion reflects continued investment in domestic semiconductor manufacturing capabilities and efforts to increase the use of locally manufactured equipment.

However, Chinese manufacturers still account for less than 10% of worldwide semiconductor equipment revenue. Their rapid growth therefore cannot independently explain major market share shifts among the industry’s largest international suppliers. Those changes also reflect differences in technology exposure, product demand and the distribution of capital spending across manufacturing processes.

For Applied Materials, the competitive challenge comes from both directions. Chinese suppliers are expanding their participation in domestic equipment spending, while established international manufacturers continue to benefit from strong positions in critical advanced manufacturing technologies.

Investor Takeaway The semiconductor equipment industry remains one of the principal beneficiaries of artificial intelligence infrastructure investment, advanced memory manufacturing and continued semiconductor technology development. With worldwide WFE revenue projected to increase 23.1% to $143.9 billion in 2026, the industry offers substantial opportunities for manufacturers capable of capturing incremental capital spending. However, The Information Network’s historical data demonstrate that Applied Materials has struggled to maintain its competitive position. Its global market share declined from 20.0% in 2024 to 17.9% in 2025, while Lam Research, KLA and ASML all gained share during that year.

The first-half 2026 revenue comparisons raise additional concerns. Applied Materials’ equipment revenue increased just 1.0%, compared with 23.3% for Lam Research, 12.6% for KLA and 13.3% for ASML. Although the full-year projections indicate that Applied Materials could recover market share to approximately 20.4% if its equipment revenue increases 40%, achieving that outcome would require a substantial acceleration during the remainder of 2026. The discrepancy between actual first-half performance and the projected full-year recovery is therefore a critical issue for investors evaluating the company’s competitive position.

For investors, the semiconductor equipment industry’s expansion remains attractive, but company selection is increasingly important. Lam Research’s recent market share gains and revenue growth make it particularly well positioned, while KLA’s process control capabilities and ASML’s lithography leadership provide important competitive advantages. Applied Materials remains an important industry supplier, but its investment case increasingly depends on demonstrating that its broad technology portfolio can generate revenue growth comparable to the overall market. Until that improvement becomes evident, the possibility of further market share erosion remains an important consideration in evaluating the stock.

Contact [email protected] for any questions or corrections.

 | Source: Applied Materials, Inc.

R&D programs to focus on speeding up the commercialization pipeline so chip technology moves from breakthrough research to full-scale manufacturing fasterCollaborative work at the state-of-the-art facility in Silicon Valley pairs UCLA’s semiconductor research strength with Applied’s cutting-edge chipmaking equipment and process integration expertise SANTA CLARA, Calif., Oct. 08, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that the UCLA Samueli School of Engineering will join the company’s EPIC Center in Silicon Valley as a research partner. Together with Applied’s scientists and engineers, UCLA researchers will work to solve semiconductor materials and integration challenges with a focus on shortening the time it takes to bring breakthrough research to commercialization.

“As the industry races to bring new AI chip technologies to market, the EPIC Center will play a pivotal role by convening the industry’s top innovators in a collaborative environment designed to accelerate the path from breakthrough research to full-scale manufacturing,” said Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials. “UCLA has a long history of semiconductor technology innovation and Applied looks forward to welcoming their researchers to the EPIC Center where together we will work to solve the industry’s toughest challenges.”

The EPIC Center aims to accelerate chip R&D by bridging the gap between traditional academic innovation and industrial-scale development. UCLA researchers will have access to advanced chipmaking tools so that new ideas can be validated and tested in a commercial fab environment, thereby shortening the path from concept to production.

UCLA Samueli brings extensive expertise across semiconductor devices, materials, electronics and computing. In 1991, Henry Samueli co-founded Broadcom Corporation while teaching at UCLA. The school is also home to the Center for Heterogeneous Integration and Performance Scaling (CHIPS) Lab, which brings together researchers across disciplines to advance semiconductor technologies and address challenges in chip design, manufacturing and integration.

By collaborating at the EPIC Center, Applied Materials and UCLA will focus R&D programs on the semiconductor industry’s most critical challenges in areas including 3D chip scaling, advanced packaging and the discovery of new materials for improving energy-efficient AI compute performance. The work will complement and extend the efforts of UCLA’s Semiconductor Hub, which Applied joined as a co-founding member earlier this year. Applied’s ongoing commitment to strengthen the ties between industry and academia is aimed at empowering the next generation of engineers and researchers to bring semiconductor breakthroughs to market faster.

“Accelerating semiconductor innovation in the new era of AI requires transformative collaboration between universities and industry partners more than ever before,” said Ah-Hyung “Alissa” Park, Ronald and Valerie Sugar Dean of UCLA Samueli. “UCLA has a long history of pioneering semiconductor research and innovation, and this collaboration builds on that legacy by bringing together university research and industry expertise to advance the chip technologies that will define the future of computing while preparing the next generation of engineers.”

Applied’s new EPIC (Equipment and Process Innovation and Commercialization) Center in Silicon Valley represents the largest-ever U.S. investment in advanced semiconductor equipment R&D. The center is designed from the ground up to dramatically reduce the time it takes to commercialize breakthrough technologies from early-stage research to full-scale manufacturing. The facility is on track to become operational in 2026. Visit the EPIC Center website to learn more.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding Applied’s investment and growth strategies, the development of new materials and technologies, industry outlook and technology requirements, the plans and expectations for the EPIC Center, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the demand for semiconductors and customers’ technology requirements; the ability to develop new and innovative technologies; the ability to obtain and protect intellectual property rights in key technologies; the ability to achieve the objectives of the EPIC Center; and other risks and uncertainties described in Applied’s filings with the Securities and Exchange Commission, including Applied’s most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and Applied assumes no obligation to update them.

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 (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

Applied Materials: A Late Upward Revenue MoveApplied Materials (AMAT -2.13%) generates the vast majority of its revenue by engineering, developing, manufacturing, and actively servicing the highly specialized equipment and advanced materials that global customers require to fabricate modern integrated circuits powering everyday electronic devices.

It recently introduced six new specialized manufacturing systems designed to address complex fabrication processes, and it simultaneously expanded its active research and development network by formally engaging with the University of California, Berkeley.

Qualcomm: Shifting Revenue With Recent Sequential DropsQualcomm (QCOM -0.63%) earns most of its global revenue by developing and supplying advanced integrated circuits for wireless networks, investing in early-stage communication technologies, and systematically licensing its essential patents to external device manufacturers.

It officially unveiled a new hardware brand named Dragonfly to support modern data center operations, while it concurrently expanded its broader technology portfolio by completing the outright corporate acquisition of an emerging artificial intelligence software company.

Why Revenue Matters for InvestorsRevenue gives everyday investors a straightforward, objective way to track ongoing customer demand and reliably measure the basic operating scale of any enterprise. Closely tracking this top-line financial figure helps investors understand the total scale and growth trajectory of a business.

Quarterly Revenue for Applied Materials and QualcommCalendar quarterApplied Materials RevenueQualcomm RevenueQ3 2024$7.0 billion (quarter ended Oct. 27, 2024)$10.2 billion (quarter ended Sept. 30, 2024)Q4 2024$7.2 billion (quarter ended Jan. 26, 2025)$11.7 billion (quarter ended Dec. 29, 2024)Q1 2025$7.1 billion (quarter ended April 27, 2025)$11.0 billion (quarter ended March 30, 2025)Q2 2025$7.3 billion (quarter ended July 27, 2025)$10.4 billion (quarter ended June 29, 2025)Q3 2025$6.8 billion (quarter ended Oct. 26, 2025)$11.3 billion (quarter ended Sept. 28, 2025)Q4 2025$7.0 billion (quarter ended Jan. 25, 2026)$12.3 billion (quarter ended Dec. 28, 2025)Q1 2026$7.9 billion (quarter ended April 26, 2026)$10.6 billion (quarter ended March 29, 2026)Q2 2026$9.1 billion (quarter ended July 26, 2026)$9.9 billion (quarter ended June 28, 2026)Data source: Financial Modeling Prep. Data as of Sept. 21, 2026.

Foolish TakeThe revenue trends between Applied Materials and Qualcomm reveal key insights for investors. The artificial intelligence boom has galvanized sales expansion for the former, while the latter attempts to shift its business more toward the AI sector's needs to reenergize growth.

Applied Materials produces essential equipment for AI chip manufacturers, and its revenue of $9.1 billion in its fiscal third quarter, ended July 26, was a record high, demonstrating the rising demand for its offerings. The rapid expansion of AI infrastructure has created a massive need for semiconductor chips, and in an effort to meet that demand, manufacturers are buying more of Applied Materials' products. As a result, the company's sales have nearly caught up with Qualcomm's, which would have seemed unthinkable in 2024.

That said, the AI explosion isn't the only reason for Applied Materials revenue to rival Qualcomm. The handset company's sales experienced steady quarter-over-quarter declines in 2026 as the market for mobile devices matures. Consequently, Qualcomm shifted greater focus toward the AI data center market. It appears to be gaining traction here, since the company gained Amazon as one of its AI customers in September.

NVIDIA, Applied Materials, TSMC and Lam Research pair strong EPS consistency with durable growth as AI fuels chip and equipment demand.

Applied Materials: Gradual Shift to Higher Quarterly RevenueApplied Materials (AMAT -2.21%) generates its primary revenue by designing, developing, manufacturing, and selling the complex materials engineering tools, specialized fabrication equipment, spare parts, and advanced factory automation software that global customers rely upon to produce modern semiconductor integrated circuits.

It recently introduced six new manufacturing systems designed specifically for advanced three-dimensional chip architectures and high-bandwidth memory, and it expanded its active engagements by adding the University of California, Berkeley, to its academic research platform.

Nvidia: Consistent and Rapid Quarterly Revenue GrowthNvidia (NVDA +0.14%) primarily earns its revenue by developing, manufacturing, and distributing advanced graphics processing units (GPUs), specialized networking hardware, cloud gaming services, and comprehensive computational platforms designed specifically for high-performance gaming systems, professional visualization applications, automotive infotainment, and modern enterprise data centers.

It recently announced a $150 billion share repurchase authorization increase, and it finalized a commercial supply agreement to deliver two million graphics processing units and related computational models to Amazon.

Why Revenue Matters for InvestorsRevenue serves as a core financial metric that helps individual investors easily track the total volume of money a given business brings in during a specific period before any operating expenses are deducted. This metric reveals whether an organization is successfully attracting customers and growing its overall business volume over time.

Quarterly Revenue Data for Applied Materials and NvidiaCalendar quarterApplied Materials RevenueNvidia RevenueQ3 2024$7.0 billion (quarter ended Oct. 27, 2024)$35.1 billion (quarter ended Oct. 27, 2024)Q4 2024$7.2 billion (quarter ended Jan. 26, 2025)$39.3 billion (quarter ended Jan. 26, 2025)Q1 2025$7.1 billion (quarter ended April 27, 2025)$44.1 billion (quarter ended April 27, 2025)Q2 2025$7.3 billion (quarter ended July 27, 2025)$46.7 billion (quarter ended July 27, 2025)Q3 2025$6.8 billion (quarter ended Oct. 26, 2025)$57.0 billion (quarter ended Oct. 26, 2025)Q4 2025$7.0 billion (quarter ended Jan. 25, 2026)$68.1 billion (quarter ended Jan. 25, 2026)Q1 2026$7.9 billion (quarter ended April 26, 2026)$81.6 billion (quarter ended April 26, 2026)Q2 2026$9.1 billion (quarter ended July 26, 2026)$96.2 billion (quarter ended July 26, 2026)Data source: Financial Modeling Prep. Data as of Sept. 21, 2026.

Foolish TakeApplied Materials and Nvidia have benefited massively from the artificial intelligence boom, as their revenue trajectories reveal. Even so, their different growth trends illustrate their unique roles in the AI ecosystem.

Applied Materials acts as a picks-and-shovels enabler across diverse chipmakers, providing tools used in various steps of the microchip manufacturing process, such as metrology and inspection systems to ensure chips are defect-free. As a result, its revenue growth is slower, though its steady upward ascent is reflective of the tremendous expansion of the AI market. The company is enjoying high-margin equipment growth, particularly in the last few quarters.

Nvidia's revenue is compounding at staggering triple-digit rates. Its success is driven by immediate end-market high-margin hardware and software sales. Its outsized revenue ascent is evidence of the popularity of its market-leading GPUs. The fact that its sales continue to grow rapidly points to how much demand exists for its semiconductor chips in AI data centers. With the global data center buildout expected to rise in the coming years, both Applied Materials and Nvidia are poised to see their current revenue trends continue to expand.

The artificial intelligence spending boom has rewarded chip designers along with the companies that supply equipment to chip factories. Should you favor Applied Materials (AMAT -1.92%) or Nvidia (NVDA +0.71%) today?

Applied Materials provides the equipment and software used to manufacture semiconductors, and Nvidia designs the high-performance processors that power data centers and AI models.

Both benefit from AI spending, but they sit at different points in the supply chain, making for a useful investment comparison.

The case for Applied MaterialsApplied Materials serves as a vital provider of equipment and software for the global semiconductor industry. Two customers accounted for about 19% and 15% of net revenue in fiscal 2025. This level of customer concentration adds a layer of risk to the business.

In February 2026, the company agreed to pay $252.5 million to settle Commerce Department allegations that certain shipments to China between 2020 and 2022 did not comply with export rules. In May 2026, it announced a partnership with Taiwan Semiconductor Manufacturing (TSM -0.32%) to develop next-generation chip technologies at its EPIC Center in Silicon Valley.

In the fiscal year ended Oct. 26, 2025, revenue reached nearly $28.4 billion, up about 4.4% from the prior fiscal year. The company reported net income of roughly $7.0 billion, which resulted in a net margin of roughly 24.7%.

This indicates that the business remains highly profitable even as it navigates shifting trade policies and investments in new manufacturing technologies. Net income slipped about 2.5% from the prior year as income tax expense more than doubled to about $2.3 billion, including roughly $1.1 billion in tax items the company excludes from its non-GAAP results.

Growth has since picked up, with revenue up 25% year over year to $9.1 billion in the quarter ended July 26, 2026.

As of its October 2025 balance sheet, the debt-to-equity ratio stands at approximately 0.3x. This ratio, which measures total debt relative to shareholders' equity, suggests a conservative borrowing approach.

The current ratio is roughly 2.6x, which indicates the ability to meet short-term obligations and supports a healthy liquidity position. Free cash flow for the fiscal year ended Oct. 26, 2025, was close to $5.7 billion.

Free cash flow is the cash remaining after paying for operating costs and equipment, providing the company with flexibility for research or shareholder returns.

The case for NvidiaNvidia has become a full-stack AI infrastructure provider, far beyond its origins in gaming hardware. The company relies on a network of massive partners, including major cloud service providers and system integrators.

In fiscal 2026, sales to one direct customer represented about 22% of total revenue, while another accounted for roughly 14%. Nvidia invested $30 billion in OpenAI's funding round in February 2026, and in August, it agreed to residual value guarantees, with an initial payment obligation capped at $105 billion, that back OpenAI's leases at a planned Ohio data center campus.

In the fiscal year ended Jan. 25, 2026, revenue reached about $215.9 billion, up roughly 65.5% year over year. This surge was driven primarily by the Compute and Networking segment as data centers globally upgraded to support AI workloads.

Net income for the period was close to $120.1 billion, resulting in an exceptionally high net margin of nearly 55.6%. Net income also benefited from about $8.9 billion in pre-tax gains on equity investments, and operating income alone came to roughly 60% of revenue. Revenue has continued to climb, more than doubling year over year to $96.2 billion in the quarter ended July 26, 2026.

As of its January 2026 balance sheet, the debt-to-equity ratio is about 0.05x on a total-debt basis, indicating very low debt relative to equity. The current ratio stands at roughly 3.9x, suggesting the company has ample short-term assets to cover its liabilities. Free cash flow for the fiscal year ended Jan. 25, 2026, came to about $96.6 billion.

This cash generation gives the company room to invest heavily in next-generation research and development. In September 2026, the board added $150 billion to the share repurchase program, bringing the remaining authorization to $235 billion, which the company expects to use through fiscal 2028.

Nvidia issued $25 billion of senior notes in June 2026, which lifted its debt-to-equity ratio to about 0.15x as of July 26, 2026.

Risk profile comparisonApplied Materials faces significant risks from evolving international trade policies, particularly export restrictions on manufacturing equipment to China. Failure to obtain the necessary export licenses could limit market access and create competitive disadvantages relative to local rivals. The company also deals with cyclicality in the semiconductor market, where inaccurate demand forecasting can lead to inventory write-offs. Its February 2026 settlement also includes a three-year suspended denial of export privileges and two required compliance audits, so failing to meet those terms could trigger the denial order.

Nvidia is similarly subject to complex export controls that restrict its ability to sell high-performance chips to China and other regions. Management's outlook for the quarter ending in October assumes no Data Center compute revenue from China. The company relies heavily on third-party manufacturers such as Taiwan Semiconductor Manufacturing and Samsung Electronics (SSNLF +0.00%), creating a dependency on Asian supply chains.

This concentration makes the company vulnerable to geopolitical tensions and manufacturing delays. Nvidia also carried $279 billion of supply and capacity commitments as of July 26, 2026, obligations that would weigh on it if demand cooled.

Additionally, Nvidia has received requests for information from competition regulators, and it faces a long-running securities lawsuit over its 2017 and 2018 statements about cryptocurrency mining demand, which could weigh on its reputation and management focus.

Valuation comparisonNvidia trades at a much lower multiple of expected earnings than Applied Materials, which looks cheaper only when measured against sales.

MetricApplied MaterialsNvidiaForward P/E41.5x24.6xP/S ratio13.7x18.3xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

The Forward P/E compares the current stock price to future earnings estimates. Meanwhile, the P/S ratio measures market capitalization against sales over the past twelve months.

I'd lean toward Nvidia, with one caveat attached. Its customer list is narrower than its size suggests, since two direct customers accounted for more than a third of revenue last fiscal year, and a pause in spending by either would show up fast.

What tips the scale for me is the price of growth. Nvidia's sales more than doubled in its latest quarter, yet the stock carries a much lower multiple of expected earnings than Applied Materials. Analysts expect Nvidia's profits to keep rising, though forecasts for a company this large can miss in either direction. I'd also watch its deepening financial ties to OpenAI, including lease guarantees on a planned data center campus.

Applied Materials remains a business worth owning for the long haul. Its tools go into chip factories across the industry, so it gains from AI demand whichever designer leads. Its February settlement with the Commerce Department resolved a long-running export probe, though the compliance terms run into 2028.

Still, its exposure to China export rules and the industry's boom-and-bust spending cycles makes it a stock I would add in stages over time. Owning both in a diversified portfolio is a reasonable way to spread exposure across the AI supply chain.

Central Pacific Bank Trust Division lifted its position in shares of Applied Materials, Inc. (NASDAQ:AMAT – Free Report) by 121.9% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 7,172 shares of the manufacturing equipment provider’s stock after purchasing an additional 3,940 shares during the period. Central Pacific Bank Trust Division’s holdings in Applied Materials were worth $3,668,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the business. State Street Corp grew its position in shares of Applied Materials by 85.4% in the 2nd quarter. State Street Corp now owns 69,525,842 shares of the manufacturing equipment provider’s stock worth $50,267,184,000 after buying an additional 32,018,892 shares during the last quarter. Bank of America Corp DE purchased a new stake in Applied Materials in the second quarter worth about $5,252,863,000. Auto Owners Insurance Co boosted its position in shares of Applied Materials by 25,824.4% during the fourth quarter. Auto Owners Insurance Co now owns 3,370,167 shares of the manufacturing equipment provider’s stock valued at $86,610,000 after purchasing an additional 3,357,167 shares in the last quarter. Jupiter Topco LLC purchased a new stake in shares of Applied Materials in the 2nd quarter worth about $1,512,287,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Applied Materials by 17.1% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,688,232 shares of the manufacturing equipment provider’s stock worth $2,746,769,000 after purchasing an additional 1,558,749 shares during the period. 80.56% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades Several brokerages have recently weighed in on AMAT. William Blair started coverage on Applied Materials in a report on Tuesday, August 11th. They set a “market perform” rating for the company. UBS Group upped their price objective on Applied Materials from $675.00 to $695.00 and gave the company a “buy” rating in a research report on Tuesday, September 1st. Sanford C. Bernstein lifted their target price on Applied Materials from $675.00 to $700.00 and gave the stock an “outperform” rating in a report on Friday, August 14th. Citigroup restated a “buy” rating and issued a $710.00 price target (up from $550.00) on shares of Applied Materials in a research note on Monday, August 3rd. Finally, Susquehanna increased their price objective on Applied Materials from $575.00 to $900.00 and gave the company a “positive” rating in a research report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $640.20.

Read Our Latest Analysis on AMAT Applied Materials Stock Performance Shares of AMAT opened at $542.28 on Tuesday. The firm has a market capitalization of $430.35 billion, a P/E ratio of 46.75, a PEG ratio of 1.50 and a beta of 1.60. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.42 and a quick ratio of 1.79. Applied Materials, Inc. has a one year low of $203.40 and a one year high of $739.67. The business has a fifty day moving average of $485.98 and a 200 day moving average of $478.15.

Applied Materials (NASDAQ:AMAT – Get Free Report) last posted its earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 earnings per share for the quarter, beating analysts’ consensus estimates of $3.40 by $0.10. Applied Materials had a return on equity of 38.02% and a net margin of 30.05%.The company had revenue of $9.12 billion for the quarter, compared to the consensus estimate of $8.99 billion. During the same quarter in the prior year, the company earned $2.48 earnings per share. Applied Materials’s revenue was up 24.8% on a year-over-year basis. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. As a group, sell-side analysts anticipate that Applied Materials, Inc. will post 12.79 EPS for the current year.

Applied Materials Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.53 dividend. The ex-dividend date is Thursday, November 19th. This represents a $2.12 annualized dividend and a yield of 0.4%. Applied Materials’s dividend payout ratio (DPR) is presently 18.28%.

Insider Transactions at Applied Materials In other news, CAO Adam Sanders sold 725 shares of the business’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $544.56, for a total transaction of $394,806.00. Following the completion of the sale, the chief accounting officer owned 3,181 shares of the company’s stock, valued at $1,732,245.36. The trade was a 18.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Brice Hill sold 7,500 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the sale, the chief financial officer owned 128,613 shares of the company’s stock, valued at $61,637,780.25. This trade represents a 5.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 9,225 shares of company stock worth $4,454,181 in the last 90 days. 0.30% of the stock is currently owned by insiders.

Applied Materials Profile (Free Report)

Applied Materials, Inc is a global supplier of equipment, services and software used to manufacture semiconductor chips, flat-panel displays and other advanced electronic products. Its technologies help customers build and enhance materials at the nanoscale, supporting processes such as deposition, etching, inspection, metrology and packaging.

The company’s offerings include semiconductor manufacturing systems, process-control and inspection equipment, and services designed to improve the performance, productivity and longevity of production equipment.

Further Reading Five stocks we like better than Applied Materials NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks 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).

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Applied Materials (AMAT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this maker of chipmaking equipment have returned +19.3% over the past month versus the Zacks S&P 500 composite's +0.8% change. The Zacks Electronics - Semiconductors industry, to which Applied Materials belongs, has gained 9.3% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Applied Materials is expected to post earnings of $4.06 per share, indicating a change of +87.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $12.79 for the current fiscal year indicates a year-over-year change of +35.8%. This estimate has changed +0.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $18.3 indicates a change of +43.1% from what Applied Materials is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Applied Materials.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Applied Materials, the consensus sales estimate of $10.3 billion for the current quarter points to a year-over-year change of +51.4%. The $34.25 billion and $45.64 billion estimates for the current and next fiscal years indicate changes of +20.7% and +33.3%, respectively.

Last Reported Results and Surprise HistoryApplied Materials reported revenues of $9.12 billion in the last reported quarter, representing a year-over-year change of +24.8%. EPS of $3.5 for the same period compares with $2.48 a year ago.

Compared to the Zacks Consensus Estimate of $9 billion, the reported revenues represent a surprise of +1.31%. The EPS surprise was +3.55%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Applied Materials is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Applied Materials. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.