Applied Materials, Inc.

Valuation Analysis

About the Company

Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory auto

Applied Materials, Inc. Stock at a Glance

Applied Materials, Inc. (AMAT) is currently trading at $567.25 with a market capitalization of $450.4B. The trailing P/E ratio stands at 53.46x, with a forward P/E of 34.89x. The 52-week range spans from $154.47 to $569.95; the current price is 0.5% below the yearly high. Year-over-year revenue growth stands at +11.4%. The net profit margin stands at 29.31%.

💰 Dividend

Applied Materials, Inc. pays an annual dividend of $2.12 per share, representing a yield of 0.37%. The payout ratio stands at 17.31%.

📊 Analyst Rating

36 analysts rate Applied Materials, Inc. (AMAT) on consensus: Strong Buy. The average price target is $517.28, implying -8.81% from the current price. Analyst price targets range from $358.00 to $650.00.

Applied Materials, Inc.: The Investment Case in Detail

Applied Materials, Inc. (AMAT) operates in the Technology — specifically Semiconductor Equipment & Materials — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 11.4% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 33.5% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 48.96% gross margin and 31.9% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

The EV/EBITDA multiple of 48.45x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 34.89x is meaningfully below the trailing 53.46x — analysts expect earnings to step up; the next earnings release is the test.
• The share is trading at 99.4% of its 52-week range — a break above the recent high opens technical upside, a failure here often invites profit-taking.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to above-average price swings.

Trading Data

💵 Dividend Info

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