Applied Materials (AMAT)
Market Price (8/23/2026): $492.58 | Market Cap: $391.1 BilSector: Information Technology | Industry: Semiconductor Materials & Equipment
Applied Materials (AMAT)
Market Price (8/23/2026): $492.58Market Cap: $391.1 BilSector: Information TechnologyIndustry: Semiconductor Materials & Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 31% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 27%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%, CFO LTM is 8.4 Bil, FCF LTM is 5.6 Bil Stock buyback supportStock Buyback 3Y Total is 11 Bil Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, 5G & Advanced Connectivity, and Advanced Materials. Show more. | Stock price has recently run up significantly12M Rtn12 month market price return is 205% Key risksAMAT key risks include [1] U.S. Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 31% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 27%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%, CFO LTM is 8.4 Bil, FCF LTM is 5.6 Bil |
| Stock buyback supportStock Buyback 3Y Total is 11 Bil |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, 5G & Advanced Connectivity, and Advanced Materials. Show more. |
| Stock price has recently run up significantly12M Rtn12 month market price return is 205% |
| Key risksAMAT key risks include [1] U.S. Show more. |
Qualitative Assessment
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Applied Materials (AMAT) stock has gained about 25% since 4/30/2026 because of the following key factors:
1. Strong financial performance and upbeat guidance, largely driven by AI-related demand. Applied Materials reported record fiscal second-quarter 2026 results on May 14, 2026 (for the quarter ended April 26, 2026), with revenue of $7.91 billion, an 11% increase year over year, and non-GAAP earnings per share (EPS) of $2.86, up 20% year over year, both surpassing analyst expectations. The company followed this with robust fiscal third-quarter 2026 results on August 13, 2026 (for the quarter ended July 26, 2026), achieving record revenue of $9.12 billion, a 24.8% increase year over year and above estimates, along with record non-GAAP EPS of $3.50, up 41% year over year and exceeding analyst forecasts. Management attributed this outperformance to accelerating investments in AI computing and provided strong fiscal fourth-quarter 2026 revenue guidance of $10.25 billion, above consensus estimates.
2. Surging demand in advanced packaging, high-bandwidth memory (HBM), and leading-edge logic. Applied Materials saw significant growth in key segments critical for AI infrastructure. The company reported that its DRAM revenue, which includes high-bandwidth memory (HBM) packaging, jumped 52% year over year in fiscal Q3 2026. Furthermore, management increased its calendar 2026 outlook for overall packaging revenues, now expecting growth of more than 70%, up from a previous forecast of over 50%. This strong demand for advanced chip architectures, such as gate-all-around transistors, HBM, and advanced packaging, is driving substantial investments in semiconductor equipment, directly benefiting Applied Materials.
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Applied Materials (AMAT) stock has gained about 25% since 4/30/2026 because of the following key factors:
1. Strong financial performance and upbeat guidance, largely driven by AI-related demand. Applied Materials reported record fiscal second-quarter 2026 results on May 14, 2026 (for the quarter ended April 26, 2026), with revenue of $7.91 billion, an 11% increase year over year, and non-GAAP earnings per share (EPS) of $2.86, up 20% year over year, both surpassing analyst expectations. The company followed this with robust fiscal third-quarter 2026 results on August 13, 2026 (for the quarter ended July 26, 2026), achieving record revenue of $9.12 billion, a 24.8% increase year over year and above estimates, along with record non-GAAP EPS of $3.50, up 41% year over year and exceeding analyst forecasts. Management attributed this outperformance to accelerating investments in AI computing and provided strong fiscal fourth-quarter 2026 revenue guidance of $10.25 billion, above consensus estimates.
2. Surging demand in advanced packaging, high-bandwidth memory (HBM), and leading-edge logic. Applied Materials saw significant growth in key segments critical for AI infrastructure. The company reported that its DRAM revenue, which includes high-bandwidth memory (HBM) packaging, jumped 52% year over year in fiscal Q3 2026. Furthermore, management increased its calendar 2026 outlook for overall packaging revenues, now expecting growth of more than 70%, up from a previous forecast of over 50%. This strong demand for advanced chip architectures, such as gate-all-around transistors, HBM, and advanced packaging, is driving substantial investments in semiconductor equipment, directly benefiting Applied Materials.
3. Positive analyst sentiment and increased price targets. Throughout the period, financial analysts maintained a highly favorable view of Applied Materials, with a consensus "Strong Buy" or "Buy" rating. Several firms, including JPMorgan Chase & Co. and Needham & Company LLC, raised their price targets for AMAT shares. For instance, JPMorgan raised its price target to $660 from $515, while Needham set a $740 price target in August 2026. This positive sentiment reinforced investor confidence in the company's long-term growth prospects, particularly given its crucial role in the ongoing AI-driven semiconductor equipment supercycle.
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Stock Movement Drivers
Fundamental Drivers
The 25.1% change in AMAT stock from 4/30/2026 to 8/22/2026 was primarily driven by a 9.3% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 4302026 | 8222026 | Change |
|---|---|---|---|
| Stock Price ($) | 393.58 | 492.32 | 25.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 28,214 | 30,837 | 9.3% |
| Net Income Margin (%) | 27.8% | 30.1% | 8.2% |
| P/E Multiple | 39.8 | 42.2 | 5.9% |
| Shares Outstanding (Mil) | 793 | 794 | -0.1% |
| Cumulative Contribution | 25.1% |
Market Drivers
4/30/2026 to 8/22/2026| Return | Correlation | |
|---|---|---|
| AMAT | 25.1% | |
| Market (SPY) | 6.5% | 59.2% |
| Sector (XLK) | 14.9% | 79.5% |
Fundamental Drivers
The 53.3% change in AMAT stock from 1/31/2026 to 8/22/2026 was primarily driven by a 21.8% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 8222026 | Change |
|---|---|---|---|
| Stock Price ($) | 321.18 | 492.32 | 53.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 28,368 | 30,837 | 8.7% |
| Net Income Margin (%) | 24.7% | 30.1% | 21.8% |
| P/E Multiple | 36.5 | 42.2 | 15.6% |
| Shares Outstanding (Mil) | 795 | 794 | 0.1% |
| Cumulative Contribution | 53.3% |
Market Drivers
1/31/2026 to 8/22/2026| Return | Correlation | |
|---|---|---|
| AMAT | 53.3% | |
| Market (SPY) | 11.0% | 59.6% |
| Sector (XLK) | 27.6% | 76.9% |
Fundamental Drivers
The 175.7% change in AMAT stock from 7/31/2025 to 8/22/2026 was primarily driven by a 97.3% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 8222026 | Change |
|---|---|---|---|
| Stock Price ($) | 178.56 | 492.32 | 175.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 28,089 | 30,837 | 9.8% |
| Net Income Margin (%) | 24.1% | 30.1% | 24.9% |
| P/E Multiple | 21.4 | 42.2 | 97.3% |
| Shares Outstanding (Mil) | 809 | 794 | 1.9% |
| Cumulative Contribution | 175.7% |
Market Drivers
7/31/2025 to 8/22/2026| Return | Correlation | |
|---|---|---|
| AMAT | 175.7% | |
| Market (SPY) | 22.2% | 57.8% |
| Sector (XLK) | 40.1% | 73.0% |
Fundamental Drivers
The 233.2% change in AMAT stock from 7/31/2023 to 8/22/2026 was primarily driven by a 119.8% change in the company's P/E Multiple.| (LTM values as of) | 7312023 | 8222026 | Change |
|---|---|---|---|
| Stock Price ($) | 147.76 | 492.32 | 233.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 26,638 | 30,837 | 15.8% |
| Net Income Margin (%) | 24.4% | 30.1% | 23.4% |
| P/E Multiple | 19.2 | 42.2 | 119.8% |
| Shares Outstanding (Mil) | 843 | 794 | 6.2% |
| Cumulative Contribution | 233.2% |
Market Drivers
7/31/2023 to 8/22/2026| Return | Correlation | |
|---|---|---|
| AMAT | 233.2% | |
| Market (SPY) | 73.2% | 62.3% |
| Sector (XLK) | 109.4% | 75.5% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| AMAT Return | 84% | -38% | 68% | 1% | 60% | 94% | 503% |
| Peers Return | 48% | -33% | 34% | -14% | 36% | 52% | 134% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 103% |
Monthly Win Rates [3] | |||||||
| AMAT Win Rate | 67% | 33% | 75% | 50% | 67% | 62% | |
| Peers Win Rate | 58% | 37% | 58% | 40% | 50% | 55% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| AMAT Max Drawdown | -20% | -55% | -16% | -36% | -35% | -40% | |
| Peers Max Drawdown | -23% | -48% | -27% | -43% | -41% | -33% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: TXN, MCHP, PXLW, AMAT, LRCX. See AMAT Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/21/2026 (YTD)
How Low Can It Go
| Event | AMAT | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -26.9% | -18.8% |
| % Gain to Breakeven | 36.8% | 23.1% |
| Time to Breakeven | 40 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -30.0% | -7.8% |
| % Gain to Breakeven | 42.8% | 8.5% |
| Time to Breakeven | 478 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -53.2% | -24.5% |
| % Gain to Breakeven | 113.5% | 32.4% |
| Time to Breakeven | 421 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -43.6% | -33.7% |
| % Gain to Breakeven | 77.4% | 50.9% |
| Time to Breakeven | 147 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -25.1% | -19.2% |
| % Gain to Breakeven | 33.5% | 23.8% |
| Time to Breakeven | 32 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -15.1% | -12.2% |
| % Gain to Breakeven | 17.8% | 13.9% |
| Time to Breakeven | 36 days | 62 days |
In The Past
Applied Materials's stock fell -26.9% during the 2025 US Tariff Shock. Such a loss loss requires a 36.8% gain to breakeven.
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Asset Allocation
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| Event | AMAT | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -26.9% | -18.8% |
| % Gain to Breakeven | 36.8% | 23.1% |
| Time to Breakeven | 40 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -30.0% | -7.8% |
| % Gain to Breakeven | 42.8% | 8.5% |
| Time to Breakeven | 478 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -53.2% | -24.5% |
| % Gain to Breakeven | 113.5% | 32.4% |
| Time to Breakeven | 421 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -43.6% | -33.7% |
| % Gain to Breakeven | 77.4% | 50.9% |
| Time to Breakeven | 147 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -25.1% | -19.2% |
| % Gain to Breakeven | 33.5% | 23.8% |
| Time to Breakeven | 32 days | 105 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -36.6% | -6.8% |
| % Gain to Breakeven | 57.7% | 7.3% |
| Time to Breakeven | 235 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -24.5% | -17.9% |
| % Gain to Breakeven | 32.5% | 21.8% |
| Time to Breakeven | 128 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -54.6% | -53.4% |
| % Gain to Breakeven | 120.2% | 114.4% |
| Time to Breakeven | 1693 days | 1085 days |
In The Past
Applied Materials's stock fell -26.9% during the 2025 US Tariff Shock. Such a loss loss requires a 36.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Applied Materials (AMAT)
Applied Materials (AMAT) is a foundational technology company that provides the essential manufacturing equipment, services, and software required to produce semiconductor chips and advanced displays. The company operates globally, enabling the creation of virtually all modern electronic devices by supplying critical tools to factories around the world. Its business is structured into three main segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
The Semiconductor Systems segment is central to the chip-making industry, offering a broad range of sophisticated equipment used to fabricate integrated circuits. These tools perform crucial processes such as deposition, etching, chemical mechanical planarization, and metrology, which are vital steps in manufacturing the processors and memory chips powering computers, smartphones, and other digital devices. Simultaneously, the Display and Adjacent Markets segment provides specialized equipment for producing various screen technologies, including liquid crystal displays (LCD) and organic light-emitting diodes (OLED), which are found in TVs, monitors, laptops, tablets, and smartphones.
Complementing its equipment sales, the Applied Global Services segment delivers comprehensive solutions designed to optimize the performance and productivity of manufacturing facilities. This includes supplying essential spare parts, offering equipment upgrades, providing maintenance services, and developing factory automation software. These services ensure that semiconductor and display fabrication plants operate efficiently and reliably. Applied Materials serves a global customer base, including leading semiconductor and display manufacturers across the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.
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Here are 1-2 brief analogies for Applied Materials (AMAT):
- Applied Materials is like the Caterpillar of the semiconductor and display industries, providing the essential heavy machinery for making advanced chips and screens.
- Think of Applied Materials as the Deere & Company for high-tech manufacturing, supplying the specialized equipment and services critical to producing the world's semiconductors and electronic displays.
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Applied Materials (AMAT) provides the following major products and services:
- Semiconductor Manufacturing Equipment: Equipment used for various processes in fabricating integrated circuits, including deposition, etching, and planarization.
- Metrology and Inspection Tools: Devices designed for measuring and examining semiconductor wafers to ensure quality and precision during manufacturing.
- Display Manufacturing Products: Equipment for producing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other advanced display technologies.
- Equipment Spares and Upgrades: Services providing replacement parts and enhancements to optimize the performance and extend the life of manufacturing equipment.
- Equipment Services: Integrated solutions and support aimed at maintaining and improving the operational efficiency and productivity of manufacturing equipment and facilities.
- Remanufactured Equipment: Sales of refurbished earlier-generation manufacturing equipment for cost-effective solutions.
- Factory Automation Software: Software solutions that automate and optimize manufacturing operations within semiconductor and display fabrication plants.
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Applied Materials (AMAT) sells primarily to other companies. Its major customers are the world's leading manufacturers of semiconductor chips (integrated circuits) and display panels (such as LCDs and OLEDs).
Based on the company's description and the industries it serves, its major customers include, but are not limited to, the following public companies:
- Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE: TSM)
- Samsung Electronics Co., Ltd. (KRX: 005930 or ADR: SSNLF) - a major manufacturer of both semiconductor chips and display panels
- Intel Corporation (NASDAQ: INTC)
- Micron Technology, Inc. (NASDAQ: MU)
- SK Hynix Inc. (KRX: 000660)
- LG Display Co., Ltd. (NYSE: LPL or KRX: 034220)
- BOE Technology Group Co., Ltd. (SHE: 000725)
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Gary E. Dickerson, President and Chief Executive Officer
Gary Dickerson has served as President of Applied Materials since June 2012 and as Chief Executive Officer and a member of the board of directors since September 2013. He has over 35 years of experience in the semiconductor industry. Prior to joining Applied Materials, he was the CEO of Varian Semiconductor Equipment Associates, Inc. for seven years, until its acquisition by Applied Materials in 2011. Dickerson also spent 18 years at KLA-Tencor Corporation, where he held various operations and product development roles, eventually serving as President and Chief Operating Officer. He began his career in manufacturing and engineering management at General Motors' Delco Electronics Division and AT&T Technologies. He successfully negotiated Applied Materials' $4.9 billion cash acquisition of Varian Semiconductor.
Brice Hill, Senior Vice President, Chief Financial Officer and Global Information Services
Brice Hill joined Applied Materials as Senior Vice President, Chief Financial Officer, and Global Information Services in March 2022. He brings 25 years of finance leadership experience within the semiconductor industry. Before joining Applied Materials, Hill served as Executive Vice President and CFO of Xilinx, Inc., through its acquisition by AMD. For over two decades, he held various finance leadership roles at Intel Corporation, including CFO and Chief Operating Officer of the Technology, Systems & Core Engineering Group. His career began at General Motors Corporation in various finance positions.
Omkaram Nalamasu, Ph.D., Senior Vice President and Chief Technology Officer
Dr. Omkaram Nalamasu is Senior Vice President and Chief Technology Officer (CTO) of Applied Materials, Inc., and also serves as President of Applied Ventures, LLC, the company's venture capital fund. He joined Applied Materials in 2006. Prior to his tenure at Applied Materials, he was an NYSTAR Distinguished Professor of materials science and engineering and Vice President of Research at Rensselaer Polytechnic Institute. Dr. Nalamasu held key research and development leadership positions at AT&T Bell Laboratories, Bell Laboratories/Lucent Technologies, and Agere Systems, Inc. While at Bell Labs, he established the United States' first public-private partnership for nanotechnology commercialization.
Prabu Raja, Ph.D., President, Semiconductor Products Group
Dr. Prabu Raja is President of Applied Materials' Semiconductor Products Group (SPG), leading the company's semiconductor process equipment businesses and global field organization. He started his career at Applied Materials in 1995 as a process engineer. He previously served as Group Vice President and General Manager of the Patterning and Packaging Group. In 2010, he was recognized as an Applied Materials Fellow for his significant technical contributions. Dr. Raja was instrumental in developing Applied Materials' advanced packaging strategy.
Teri Little, Senior Vice President, Chief Legal Officer and Corporate Secretary
Teri Little serves as Senior Vice President, Chief Legal Officer, and Corporate Secretary at Applied Materials. In this role, she is responsible for managing the legal and governance aspects of the company, ensuring compliance and effective risk management.
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Key Risks to Applied Materials (AMAT)
- Geopolitical Tensions and Export Controls (China Exposure): Applied Materials faces significant risks due to increasing U.S. export controls on advanced logic and memory tools to China. China was previously a major market for AMAT, accounting for a substantial portion of its revenue, which has since dropped. Management forecasts a further revenue headwind in 2026 due to expanded restrictions, and the company has incurred settlements related to past export control violations, indicating ongoing regulatory scrutiny.
- Cyclicality of the Semiconductor Industry and Global Economic Uncertainties: The semiconductor industry is inherently cyclical and highly sensitive to global economic conditions. Applied Materials' financial performance is closely tied to these fluctuations, as economic downturns or broader geopolitical tensions can lead to reduced capital expenditure by chipmakers, directly impacting AMAT's orders and revenue.
- Customer Concentration Risk: Applied Materials has a highly concentrated customer base, with a significant portion of its revenue derived from a few large chipmakers such as TSMC, Samsung, and Intel. Any shifts in the spending patterns of these major clients or the loss of a key customer could materially affect AMAT's financial performance and market position.
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The clear emerging threat for Applied Materials is the significant push by China to develop its domestic semiconductor equipment industry. Backed by substantial government investment and strategic policy, Chinese equipment manufacturers are rapidly advancing their capabilities with the explicit goal of achieving self-sufficiency and reducing reliance on foreign suppliers like Applied Materials. This initiative poses a direct threat to Applied Materials' market share and long-term revenue in the critical Chinese market, as geopolitical factors increasingly favor local alternatives.
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Applied Materials (AMAT) operates in key addressable markets related to semiconductor manufacturing equipment, display manufacturing equipment, and associated services. The market sizes for their main products and services are outlined below:
Semiconductor Systems
The Semiconductor Systems segment provides manufacturing equipment used to fabricate semiconductor chips. The global market for semiconductor manufacturing equipment demonstrates substantial scale and growth:
- The global semiconductor manufacturing equipment market was valued at approximately USD 110.50 billion in 2024 and is projected to reach around USD 206.05 billion by 2034, with a compound annual growth rate (CAGR) of approximately 8.10% between 2025 and 2034.
- Another estimate indicates the global semiconductor manufacturing equipment market size was valued at USD 118.88 billion in 2025 and is projected to reach USD 224.93 billion by 2033, growing at a CAGR of 8.4% from 2026 to 2033.
- Global sales of total semiconductor manufacturing equipment by original equipment manufacturers (OEMs) are forecast to reach a record high of USD 133 billion in 2025, growing 13.7% year-on-year, with projections of USD 145 billion in 2026 and USD 156 billion in 2027.
- The front-end equipment segment is projected to lead the market with an 84.64% share in 2026.
- The Asia Pacific region dominated the semiconductor manufacturing equipment industry with the largest revenue share of 69.0% in 2025.
Applied Global Services
The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, remanufactured equipment, and factory automation software for semiconductor and display products. A direct, standalone addressable market size specifically for "Applied Global Services" was not readily available as a distinct market from the overall equipment sales and aftermarket support for the installed base. However, its market is intrinsically linked to the overall semiconductor manufacturing equipment market and the installed base of equipment that it services and maintains. Applied Materials' own services business is noted to be supporting a double-digit growth rate.
Display and Adjacent Markets
The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies globally:
- Global display equipment spending is expected to reach a cumulative USD 76 billion during 2020-2027.
- The global flat panel display manufacturing equipment market size was valued at approximately USD 17.5 billion in 2023 and is projected to reach around USD 29.3 billion by 2032, exhibiting a CAGR of 5.8% during the forecast period.
- OLED is projected to account for 67% of total display equipment spending from 2023 to 2030, followed by LCD at 30%.
- The global OLED market size was accounted at USD 68.27 billion in 2025 and is predicted to increase from USD 82.67 billion in 2026 to approximately USD 385.91 billion by 2035, growing at a CAGR of 18.91% from 2026 to 2035.
- The OLED Deposition Equipment Market was valued at USD 2,510 million in 2024 and is expected to grow from USD 2,690 million in 2025 to USD 5.2 billion by 2035, with a CAGR of around 6.9% during the forecast period (2025 - 2035).
- The liquid crystal display (LCD) market was valued at USD 2.14 billion in 2025 and is estimated to grow from USD 2.33 billion in 2026 to reach USD 3.56 billion by 2031, at a CAGR of 8.85% during the forecast period (2026-2031).
- Asia Pacific is expected to contribute 46% to the growth of the global flat panel display equipment market during the forecast period.
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Applied Materials (AMAT) is anticipated to experience future revenue growth over the next 2-3 years driven by several key factors:
- AI-Driven Semiconductor Demand: The surging demand for artificial intelligence (AI) applications is fueling significant investments in leading-edge foundry-logic, high-bandwidth memory (HBM), and advanced packaging technologies. Applied Materials expects its semiconductor equipment business to grow by more than 20% in calendar year 2026, largely attributed to AI infrastructure investments. This strong demand across these segments is expanding the market opportunity for their differentiated materials engineering portfolio.
- Innovation and New Product Introductions: Applied Materials is continuously investing in research and development (R&D) and launching new products designed for advanced technology inflections. These innovations target next-generation chips, including advanced transistors, Gate-All-Around (GAA) structures, and other 3D scaling approaches in both logic and DRAM. The company plans to introduce more than a dozen new products in 2026, which are critical for enabling their customers' roadmaps and capturing market share.
- Expansion of Applied Global Services (AGS): The Applied Global Services segment provides integrated solutions such as spares, upgrades, services, and factory automation software. This segment is transitioning to an entirely recurring revenue model in 2026, offering a stable and growing revenue stream. Core services within AGS have demonstrated double-digit growth, bolstered by healthy utilization rates in leading-edge foundry-logic and high-bandwidth memory.
- Growth in Display Technology Adoption: The Display and Adjacent Markets segment is expected to contribute to revenue growth through continued industry investments in equipment supporting the broader adoption of advanced display technologies, particularly organic light-emitting diode (OLED) technology, in consumer devices.
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Share Repurchases
- Applied Materials authorized a new $10 billion share repurchase program in March 2025, augmenting an existing authorization that had approximately $7.6 billion remaining at the end of Q1 fiscal 2025.
- The company's annual share repurchases amounted to approximately $4.895 billion in 2025, $3.823 billion in 2024, and $2.189 billion in 2023.
- Over the four years preceding March 2025, Applied Materials returned $19.7 billion to shareholders through a combination of dividends and share buybacks.
Outbound Investments
- In April 2025, Applied Materials made a strategic, long-term investment by purchasing 9% of the outstanding shares of BE Semiconductor Industries N.V. (Besi). This investment is intended to further the co-development of a fully integrated equipment solution for die-based hybrid bonding, a critical technology for advanced semiconductor packaging.
- Applied Materials acquired Picosun, a developer of thin film coating machinery for industrial purposes, in June 2022. The financial terms of this acquisition were not disclosed.
Capital Expenditures
- Annual capital expenditures were $2.26 billion in 2025, $1.19 billion in 2024, and $1.106 billion in 2023.
- Capital expenditures for the twelve months ending January 31, 2026, were $646 million.
- A significant capital investment has been made in the EPIC lab in Sunnyvale, which aims to foster innovation and collaboration with partners such as Micron and Samsung.
Peer Outperformance in Semiconductor Materials & Equipment
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 56.5% | 200.4% | 341.0% | FLEX 746% · TTMI 687% · JBL 432% |
| Semiconductor Materials & Equipment ← | 27 | 137.0% | 74.6% | 125.0% | AEHR 1645% · AXTI 677% · KLAC 488% |
| Technology Distributors | 9 | 21.8% | 61.4% | 77.5% | CLMB 340% · AVT 153% · SNX 113% |
| Electronic Components | 26 | 54.5% | 61.3% | 57.7% | CLS 3221% · BELFA 1309% · LPTH 617% |
| Communications Equipment | 35 | 29.8% | 82.4% | 42.0% | AAOI 1755% · LITE 905% · ANET 715% |
| Semiconductors | 54 | 31.6% | 30.5% | 31.0% | POET 1926% · MU 1282% · NVDA 881% |
| Technology Hardware, Storage & Peripherals | 22 | 31.2% | 76.3% | 22.5% | STX 976% · SMCI 936% · WDC 891% |
| Internet Services & Infrastructure | 6 | 13.9% | 38.3% | 15.1% | DOCN 109% · GDDY 36% · VRSN 34% |
| Electronic Equipment & Instruments | 27 | -7.9% | 17.2% | -3.6% | PI 215% · SOTK 138% · NSSC 125% |
| IT Consulting & Other Services | 28 | -25.2% | -7.3% | -18.3% | CHRN 627400% · APLD 1844% · TSSI 695% |
| Application Software | 123 | -19.6% | -10.4% | -42.5% | VIDA 394900% · INLX 5338% · PLTR 625% |
| Systems Software | 69 | -7.8% | 14.7% | -51.2% | QNC 845% · PANW 476% · PAYS 446% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 264.36 |
| Mkt Cap | 241.1 |
| Rev LTM | 19,453 |
| Op Inc LTM | 7,405 |
| FCF LTM | 4,891 |
| FCF 3Y Avg | 2,784 |
| CFO LTM | 5,858 |
| CFO 3Y Avg | 5,561 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 20.9% |
| Rev Chg 3Y Avg | 1.9% |
| Rev Chg Q | 24.8% |
| QoQ Delta Rev Chg LTM | 6.2% |
| Op Inc Chg LTM | 27.3% |
| Op Inc Chg 3Y Avg | 19.6% |
| Op Mgn LTM | 33.2% |
| Op Mgn 3Y Avg | 31.0% |
| QoQ Delta Op Mgn LTM | 1.5% |
| CFO/Rev LTM | 26.2% |
| CFO/Rev 3Y Avg | 28.8% |
| FCF/Rev LTM | 21.4% |
| FCF/Rev 3Y Avg | 22.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 241.1 |
| P/S | 12.5 |
| P/Op Inc | 40.8 |
| P/EBIT | 35.2 |
| P/E | 42.2 |
| P/CFO | 34.5 |
| Total Yield | 3.5% |
| Dividend Yield | 0.4% |
| FCF Yield 3Y Avg | 2.8% |
| D/E | 0.0 |
| Net D/E | -0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -6.5% |
| 3M Rtn | -0.7% |
| 6M Rtn | 21.5% |
| 12M Rtn | 31.6% |
| 3Y Rtn | 69.6% |
| 1M Excs Rtn | -10.1% |
| 3M Excs Rtn | -5.1% |
| 6M Excs Rtn | 10.5% |
| 12M Excs Rtn | 15.1% |
| 3Y Excs Rtn | -0.4% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Semiconductor Systems | 20,798 | 19,911 | 19,698 | 18,797 | 16,286 |
| Applied Global Services | 6,385 | 6,225 | 5,732 | 5,543 | 5,013 |
| Other | 1,185 | 1,040 | 1,087 | 114 | 130 |
| Display | 1,331 | 1,634 | |||
| Total | 28,368 | 27,176 | 26,517 | 25,785 | 23,063 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Semiconductor Systems | 7,379 | 6,981 | 6,879 | 6,790 | 6,311 |
| Applied Global Services | 1,792 | 1,812 | 1,529 | 1,555 | 1,508 |
| Other | -882 | -926 | -754 | -800 | -1,244 |
| Display | 243 | 314 | |||
| Total | 8,289 | 7,867 | 7,654 | 7,788 | 6,889 |
| $ Mil | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|
| Corporate and unallocated costs | 7,016 | 5,028 | 4,084 | ||
| Silicon Systems Group | 5,464 | 5,508 | 5,525 | 5,106 | 2,036 |
| Applied Global Services | 2,254 | 2,042 | 1,958 | 2,035 | 1,337 |
| Display | 456 | 423 | 293 | 278 | 459 |
| Energy and Environmental Solutions | 118 | 173 | 183 | 513 | 1,438 |
| Corporate | 4,170 | 8,591 | |||
| Total | 15,308 | 13,174 | 12,043 | 12,102 | 13,861 |
Price Behavior
| Market Price | $492.32 | |
| Market Cap ($ Bil) | 390.9 | |
| First Trading Date | 09/07/1984 | |
| Distance from 52W High | -31.8% | |
| 50 Days | 200 Days | |
| DMA Price | $560.13 | $394.67 |
| DMA Trend | up | up |
| Distance from DMA | -12.1% | 24.7% |
| 3M | 1YR | |
| Volatility | 86.3% | 59.2% |
| Downside Capture | 384.67 | 268.88 |
| Upside Capture | 405.36 | 346.11 |
| Correlation (SPY) | 58.4% | 59.9% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 4.81 | 4.06 | 3.92 | 3.05 | 2.73 | 1.98 |
| Up Beta | 11.32 | 5.27 | 5.26 | 3.22 | 2.57 | 1.80 |
| Down Beta | 0.46 | 2.05 | 1.60 | 1.88 | 1.89 | 1.53 |
| Up Capture | 158% | 692% | 713% | 710% | 1300% | 4176% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 8 | 24 | 37 | 73 | 148 | 404 |
| Down Capture | 586% | 313% | 316% | 218% | 171% | 112% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 14 | 19 | 26 | 53 | 104 | 349 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AMAT | |
|---|---|---|---|---|
| AMAT | 209.8% | 59.0% | 2.13 | - |
| Sector ETF (XLK) | 41.9% | 26.0% | 1.31 | 74.9% |
| Equity (SPY) | 21.1% | 12.9% | 1.22 | 59.7% |
| Gold (GLD) | 37.5% | 28.8% | 1.10 | 22.7% |
| Commodities (DBC) | 43.2% | 20.2% | 1.66 | -7.1% |
| Real Estate (VNQ) | 12.9% | 13.8% | 0.64 | -2.4% |
| Bitcoin (BTCUSD) | -31.6% | 44.1% | -0.73 | 24.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AMAT | |
|---|---|---|---|---|
| AMAT | 31.7% | 46.9% | 0.74 | - |
| Sector ETF (XLK) | 19.7% | 25.9% | 0.68 | 77.5% |
| Equity (SPY) | 12.9% | 17.2% | 0.57 | 67.3% |
| Gold (GLD) | 20.6% | 18.6% | 0.90 | 15.3% |
| Commodities (DBC) | 10.4% | 19.6% | 0.41 | 11.8% |
| Real Estate (VNQ) | 2.3% | 18.9% | 0.02 | 29.7% |
| Bitcoin (BTCUSD) | 10.4% | 52.8% | 0.38 | 27.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with AMAT | |
|---|---|---|---|---|
| AMAT | 35.3% | 44.4% | 0.84 | - |
| Sector ETF (XLK) | 24.1% | 24.9% | 0.88 | 76.7% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 68.8% |
| Gold (GLD) | 12.7% | 16.2% | 0.64 | 11.4% |
| Commodities (DBC) | 8.0% | 18.0% | 0.36 | 18.9% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.20 | 38.3% |
| Bitcoin (BTCUSD) | 63.1% | 66.1% | 1.03 | 19.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/23/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/13/2026 | -5.1% | -7.1% | |
| 5/14/2026 | -0.9% | -2.9% | 33.1% |
| 2/12/2026 | 8.1% | 14.5% | 5.5% |
| 11/13/2025 | 1.2% | -1.2% | 16.2% |
| 8/14/2025 | -14.1% | -14.8% | -8.9% |
| 5/15/2025 | -5.3% | -7.9% | 1.3% |
| 2/13/2025 | -8.2% | -6.5% | -15.4% |
| 11/14/2024 | -9.2% | -5.3% | -8.7% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 9 | 10 | 13 |
| # Negative | 15 | 14 | 10 |
| Median Positive | 3.9% | 4.0% | 5.5% |
| Median Negative | -3.9% | -5.2% | -10.1% |
| Max Positive | 8.1% | 14.5% | 33.1% |
| Max Negative | -14.1% | -14.8% | -16.9% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/13/2026 | -5.1% | -7.1% | |
| 5/14/2026 | -0.9% | -2.9% | 33.1% |
| 2/12/2026 | 8.1% | 14.5% | 5.5% |
| 11/13/2025 | 1.2% | -1.2% | 16.2% |
| 8/14/2025 | -14.1% | -14.8% | -8.9% |
| 5/15/2025 | -5.3% | -7.9% | 1.3% |
| 2/13/2025 | -8.2% | -6.5% | -15.4% |
| 11/14/2024 | -9.2% | -5.3% | -8.7% |
| 8/15/2024 | -1.9% | -5.3% | -11.3% |
| 2/15/2024 | 6.3% | 5.2% | 7.1% |
| 11/16/2023 | -4.0% | -2.7% | 3.8% |
| 8/17/2023 | 3.7% | 3.8% | 2.2% |
| 5/18/2023 | -2.3% | 0.7% | 6.9% |
| 2/16/2023 | 0.0% | -3.3% | 7.7% |
| 11/17/2022 | 0.2% | 1.6% | -0.2% |
| 8/18/2022 | -3.4% | -2.8% | -16.9% |
| 5/19/2022 | -3.9% | 4.2% | -13.8% |
| 2/16/2022 | -3.2% | -5.2% | -4.0% |
| 11/18/2021 | -5.5% | -9.6% | -8.5% |
| 8/19/2021 | -1.5% | 2.7% | 5.1% |
| 5/20/2021 | -1.3% | 5.9% | 2.3% |
| 2/18/2021 | 5.3% | 0.6% | 1.5% |
| 11/12/2020 | 4.3% | 11.0% | 27.2% |
| 8/13/2020 | 3.9% | -1.6% | -12.9% |
| SUMMARY STATS | |||
| # Positive | 9 | 10 | 13 |
| # Negative | 15 | 14 | 10 |
| Median Positive | 3.9% | 4.0% | 5.5% |
| Median Negative | -3.9% | -5.2% | -10.1% |
| Max Positive | 8.1% | 14.5% | 33.1% |
| Max Negative | -14.1% | -14.8% | -16.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 08/20/2026 | 10-Q |
| 04/30/2026 | 05/21/2026 | 10-Q |
| 01/31/2026 | 02/19/2026 | 10-Q |
| 10/31/2025 | 12/12/2025 | 10-K |
| 07/31/2025 | 08/21/2025 | 10-Q |
| 04/30/2025 | 05/22/2025 | 10-Q |
| 01/31/2025 | 02/20/2025 | 10-Q |
| 10/31/2024 | 12/13/2024 | 10-K |
| 07/31/2024 | 08/22/2024 | 10-Q |
| 04/30/2024 | 05/23/2024 | 10-Q |
| 01/31/2024 | 02/27/2024 | 10-Q |
| 10/31/2023 | 12/15/2023 | 10-K |
| 07/31/2023 | 08/24/2023 | 10-Q |
| 04/30/2023 | 05/26/2023 | 10-Q |
| 01/31/2023 | 02/23/2023 | 10-Q |
| 10/31/2022 | 12/16/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 08/20/2026 | 10-Q |
| 04/30/2026 | 05/21/2026 | 10-Q |
| 01/31/2026 | 02/19/2026 | 10-Q |
| 10/31/2025 | 12/12/2025 | 10-K |
| 07/31/2025 | 08/21/2025 | 10-Q |
| 04/30/2025 | 05/22/2025 | 10-Q |
| 01/31/2025 | 02/20/2025 | 10-Q |
| 10/31/2024 | 12/13/2024 | 10-K |
| 07/31/2024 | 08/22/2024 | 10-Q |
| 04/30/2024 | 05/23/2024 | 10-Q |
| 01/31/2024 | 02/27/2024 | 10-Q |
| 10/31/2023 | 12/15/2023 | 10-K |
| 07/31/2023 | 08/24/2023 | 10-Q |
| 04/30/2023 | 05/26/2023 | 10-Q |
| 01/31/2023 | 02/23/2023 | 10-Q |
| 10/31/2022 | 12/16/2022 | 10-K |
| 07/31/2022 | 08/25/2022 | 10-Q |
| 04/30/2022 | 05/26/2022 | 10-Q |
| 01/31/2022 | 02/24/2022 | 10-Q |
| 10/31/2021 | 12/17/2021 | 10-K |
| 07/31/2021 | 08/26/2021 | 10-Q |
| 04/30/2021 | 05/27/2021 | 10-Q |
| 01/31/2021 | 02/25/2021 | 10-Q |
| 10/31/2020 | 12/11/2020 | 10-K |
| 07/31/2020 | 08/20/2020 | 10-Q |
| 04/30/2020 | 05/21/2020 | 10-Q |
| 01/31/2020 | 02/20/2020 | 10-Q |
| 10/31/2019 | 12/13/2019 | 10-K |
Recent Forward Guidance
Updated 8/14/2026Latest: Q3 2026 Earnings Reported 8/13/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | 9.75 Bil | 10.25 Bil | 10.75 Bil | 14.5% | Higher New | Guidance: 8.95 Bil for Q3 2026 | |
| Q4 2026 Non-GAAP diluted EPS | 3.82 | 4.02 | 4.22 | 19.6% | Higher New | Guidance: 3.36 for Q3 2026 | |
Prior: Q2 2026 Earnings Reported 5/14/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Total Revenue | 8.45 Bil | 8.95 Bil | 9.45 Bil | 17.0% | Higher New | Actual: 7.65 Bil for Q2 2026 | |
| Q3 2026 Non-GAAP diluted EPS | 3.16 | 3.36 | 3.56 | 27.3% | Higher New | Actual: 2.64 for Q2 2026 | |
| 2026 Semiconductor equipment business growth | 30.0% | 10.0% | Raised | Guidance: 20.0% for 2026 | |||
Q1 2026 Earnings Reported 2/12/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 7.15 Bil | 7.65 Bil | 8.15 Bil | 11.7% | Higher New | Actual: 6.85 Bil for Q1 2026 | |
| Q2 2026 Non-GAAP diluted EPS | 2.44 | 2.64 | 2.84 | 21.1% | Higher New | Actual: 2.18 for Q1 2026 | |
| 2026 Semiconductor equipment business growth | 20.0% | ||||||
Q4 2025 Earnings Reported 11/13/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Total net revenue | 6.35 Bil | 6.85 Bil | 7.35 Bil | 2.2% | Higher New | Guidance: 6.70 Bil for Q4 2025 | |
| Q1 2026 Non-GAAP diluted EPS | 1.98 | 2.18 | 2.38 | 3.3% | Higher New | Guidance: 2.11 for Q4 2025 | |
Insider Activity
Updated 7/6/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Dickerson, Gary E | President and CEO | Direct | Sell | 7012026 | 735.22 | 20,000 | 14,704,425 | 1,176,238,562 | Form |
| 2 | Dickerson, Gary E | President and CEO | Direct | Sell | 7012026 | 700.36 | 58,321 | 40,845,895 | 1,134,478,785 | Form |
| 3 | Raja, Prabu G | President, Semi. Products Grp. | Through Living Trust | Sell | 6222026 | 633.53 | 10,000 | 6,335,300 | 219,608,106 | Form |
| 4 | Iannotti, Thomas J | Direct | Sell | 6172026 | 599.77 | 9,250 | 5,547,872 | 24,326,071 | Form | |
| 5 | Nalamasu, Omkaram | Senior Vice President, CTO | Direct | Sell | 6172026 | 593.43 | 24,263 | 14,398,453 | 87,184,729 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Dickerson, Gary E | President and CEO | Direct | Sell | 7012026 | 735.22 | 20,000 | 14,704,425 | 1,176,238,562 | Form |
| 2 | Dickerson, Gary E | President and CEO | Direct | Sell | 7012026 | 700.36 | 58,321 | 40,845,895 | 1,134,478,785 | Form |
| 3 | Raja, Prabu G | President, Semi. Products Grp. | Through Living Trust | Sell | 6222026 | 633.53 | 10,000 | 6,335,300 | 219,608,106 | Form |
| 4 | Iannotti, Thomas J | Direct | Sell | 6172026 | 599.77 | 9,250 | 5,547,872 | 24,326,071 | Form | |
| 5 | Nalamasu, Omkaram | Senior Vice President, CTO | Direct | Sell | 6172026 | 593.43 | 24,263 | 14,398,453 | 87,184,729 | Form |
| 6 | Dickerson, Gary E | President and CEO | Direct | Sell | 6172026 | 593.75 | 71,727 | 42,587,675 | 1,006,498,170 | Form |
| 7 | Nalamasu, Omkaram | Senior Vice President, CTO | Direct | Sell | 6172026 | 591.95 | 10,737 | 6,355,744 | 101,329,047 | Form |
| 8 | Dickerson, Gary E | President and CEO | Direct | Sell | 6172026 | 590.03 | 11,273 | 6,651,408 | 1,042,518,697 | Form |
| 9 | Deane, Timothy M | SVP, Applied Global Services | Direct | Sell | 6172026 | 590.76 | 8,621 | 5,092,984 | 79,535,269 | Form |
| 10 | Raja, Prabu G | President, Semi. Products Grp. | Through Living Trust | Sell | 6052026 | 505.28 | 50,000 | 25,264,197 | 180,205,473 | Form |
| 11 | Hill, Brice | SVP, CFO | Direct | Sell | 6052026 | 498.86 | 2,500 | 1,247,154 | 67,901,535 | Form |
| 12 | Bruner, Judy | Family Trust | Sell | 5282026 | 450.00 | 1,128 | 507,600 | 11,944,800 | Form | |
| 13 | Sanders, Adam | Corp. Controller & CAO | Direct | Sell | 5262026 | 434.22 | 268 | 116,370 | 1,858,444 | Form |
| 14 | Bruner, Judy | Family Trust | Sell | 2272026 | 391.71 | 2,500 | 979,275 | 10,219,322 | Form | |
| 15 | Sanders, Adam | Corp. Controller & CAO | Direct | Sell | 2242026 | 379.16 | 534 | 202,471 | 1,753,615 | Form |
| 16 | Bruner, Judy | Family Trust | Sell | 2242026 | 377.02 | 3,969 | 1,496,404 | 10,778,710 | Form | |
| 17 | Hill, Brice | SVP, CFO | Direct | Sell | 2182026 | 361.21 | 5,000 | 1,806,062 | 50,051,396 | Form |
| 18 | Sanders, Adam | Corp. Controller & CAO | Direct | Sell | 12032025 | 255.53 | 609 | 155,620 | 1,127,672 | Form |
| 19 | Little, Teri A | SVP, CLO | Direct | Sell | 11262025 | 238.24 | 4,000 | 952,942 | 20,095,403 | Form |
| 20 | Little, Teri A | SVP, CLO | Direct | Sell | 11212025 | 234.08 | 4,000 | 936,321 | 20,681,220 | Form |
Investor Activity (13F)
Updated Aug 23, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Harbor Island Capital LLC | $40.4 Mil | 15.0% | 16 | TRIM -8.9% | 13F |
| Lountzis Asset Management, LLC | $40.7 Mil | 14.9% | 52 | Hold | 13F |
| Abrams Bison Investments, LLC | $240.6 Mil | 10.4% | 11 | TRIM -21.1% | 13F |
| California First Leasing Corp | $30.2 Mil | 9.7% | 39 | Hold | 13F |
| Broad Run Investment Management, LLC | $50.7 Mil | 8.9% | 24 | TRIM -5.6% | 13F |
| Carmel Capital Management L.L.C. | $30.4 Mil | 8.7% | 25 | Hold | 13F |
| Dundas Partners LLP | $89.9 Mil | 7.2% | 49 | Hold | 13F |
| XN LP | $165.2 Mil | 6.1% | 23 | ADD +43.4% | 13F |
| Stanley Capital Management, LLC | $33.8 Mil | 5.6% | 40 | TRIM -8.3% | 13F |
| Alta Park Capital, LP | $34.7 Mil | 5.6% | 24 | TRIM -17.7% | 13F |
| Bristol Gate Capital Partners Inc. | $77.2 Mil | 5.0% | 31 | TRIM -30.3% | 13F |
| Styrax Capital, LP | $68.4 Mil | 4.8% | 17 | New | 13F |
| Jericho Capital Asset Management L.P. | $309.1 Mil | 4.6% | 23 | New | 13F |
| Analog Century Management LP | $95.4 Mil | 4.6% | 25 | TRIM -31.0% | 13F |
| 3G Capital Partners LP | $12.0 Mil | 4.2% | 10 | New | 13F |
| Anther Capital Ltd | $156.6 Mil | 4.1% | 31 | New | 13F |
| Nishkama Capital, LLC | $28.7 Mil | 4.1% | 39 | New | 13F |
| Palestra Capital Management LLC | $97.9 Mil | 3.8% | 22 | New | 13F |
| Castle Hook Partners LP | $177.9 Mil | 3.6% | 44 | ADD +115.4% | 13F |
| Benchstone Capital Management LP | $29.6 Mil | 3.4% | 38 | ADD +73.1% | 13F |
| Tairen Capital Ltd | $29.7 Mil | 3.2% | 44 | New | 13F |
| Summit Street Capital Management, LLC | $20.2 Mil | 2.9% | 31 | TRIM -22.1% | 13F |
| EdgePoint Investment Group Inc. | $334.2 Mil | 2.7% | 37 | TRIM -57.3% | 13F |
| Sanders Capital, LLC | $2.1 Bil | 2.5% | 44 | TRIM -30.1% | 13F |
| Science & Technology Partners, L.P. | $7.4 Mil | 1.9% | 42 | New | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Jericho Capital Asset Management L.P. | $309.1 Mil | 4.6% | 23 | New | 13F |
| Anther Capital Ltd | $156.6 Mil | 4.1% | 31 | New | 13F |
| Palestra Capital Management LLC | $97.9 Mil | 3.8% | 22 | New | 13F |
| Styrax Capital, LP | $68.4 Mil | 4.8% | 17 | New | 13F |
| Tairen Capital Ltd | $29.7 Mil | 3.2% | 44 | New | 13F |
| Nishkama Capital, LLC | $28.7 Mil | 4.1% | 39 | New | 13F |
| Kinetic Partners Management, LP | $28.3 Mil | 1.6% | 49 | New | 13F |
| Insight Holdings Group, LLC | $12.8 Mil | 0.9% | 28 | New | 13F |
| 3G Capital Partners LP | $12.0 Mil | 4.2% | 10 | New | 13F |
| Night Owl Capital Management, LLC | $9.7 Mil | 1.1% | 30 | New | 13F |
| KR Capital LP | $7.4 Mil | 1.5% | 49 | New | 13F |
| Science & Technology Partners, L.P. | $7.4 Mil | 1.9% | 42 | New | 13F |
| Castle Hook Partners LP | $177.9 Mil | 3.6% | 44 | ADD +115.4% | 13F |
| Benchstone Capital Management LP | $29.6 Mil | 3.4% | 38 | ADD +73.1% | 13F |
| Glenview Capital Management, LLC | $67.4 Mil | 1.8% | 41 | ADD +52.1% | 13F |
| XN LP | $165.2 Mil | 6.1% | 23 | ADD +43.4% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | As Of | Filing |
|---|---|---|---|---|---|---|
| Sound Shore Management Inc /CT/ | $72.1 Mil | 2.3% | 37 | Exited | Dec 31, 2025 | 13F |
| Southpoint Capital Advisors LP | $64.2 Mil | 1.5% | 38 | Exited | Dec 31, 2025 | 13F |
| Talos Eurisko Asset Management LP | $40.4 Mil | 7.1% | 24 | Exited | Dec 31, 2025 | 13F |
| CloudAlpha Capital Management Limited/Hong Kong | $36.2 Mil | 3.3% | 43 | Exited | Dec 31, 2025 | 13F |
| National Mutual Insurance Federation of Agricultural Cooperatives | $27.0 Mil | 0.2% | 42 | Exited | Dec 31, 2025 | 13F |
| Trivest Advisors Ltd | $12.3 Mil | 0.6% | 30 | Exited | Dec 31, 2025 | 13F |
| Hel Ved Capital Management Ltd | $8.3 Mil | 2.9% | 49 | Exited | Dec 31, 2025 | 13F |
| MIG Capital, LLC | $5.2 Mil | 0.9% | 43 | Exited | Dec 31, 2025 | 13F |
| EdgePoint Investment Group Inc. | $334.2 Mil | 2.7% | 37 | TRIM -57.3% | Mar 31, 2026 | 13F |
| Analog Century Management LP | $95.4 Mil | 4.6% | 25 | TRIM -31.0% | Mar 31, 2026 | 13F |
| Bristol Gate Capital Partners Inc. | $77.2 Mil | 5.0% | 31 | TRIM -30.3% | Mar 31, 2026 | 13F |
| Sanders Capital, LLC | $2.1 Bil | 2.5% | 44 | TRIM -30.1% | Mar 31, 2026 | 13F |
| Summit Street Capital Management, LLC | $20.2 Mil | 2.9% | 31 | TRIM -22.1% | Mar 31, 2026 | 13F |
| Abrams Bison Investments, LLC | $240.6 Mil | 10.4% | 11 | TRIM -21.1% | Mar 31, 2026 | 13F |
| Alta Park Capital, LP | $34.7 Mil | 5.6% | 24 | TRIM -17.7% | Mar 31, 2026 | 13F |
| Harbor Island Capital LLC | $40.4 Mil | 15.0% | 16 | TRIM -8.9% | Mar 31, 2026 | 13F |
| Stanley Capital Management, LLC | $33.8 Mil | 5.6% | 40 | TRIM -8.3% | Mar 31, 2026 | 13F |
| Broad Run Investment Management, LLC | $50.7 Mil | 8.9% | 24 | TRIM -5.6% | Mar 31, 2026 | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Sanders Capital, LLC | $2.1 Bil | 2.5% | 44 | TRIM -30.1% | 13F |
| EdgePoint Investment Group Inc. | $334.2 Mil | 2.7% | 37 | TRIM -57.3% | 13F |
| Jericho Capital Asset Management L.P. | $309.1 Mil | 4.6% | 23 | New | 13F |
| Abrams Bison Investments, LLC | $240.6 Mil | 10.4% | 11 | TRIM -21.1% | 13F |
| Castle Hook Partners LP | $177.9 Mil | 3.6% | 44 | ADD +115.4% | 13F |
| XN LP | $165.2 Mil | 6.1% | 23 | ADD +43.4% | 13F |
| Anther Capital Ltd | $156.6 Mil | 4.1% | 31 | New | 13F |
| Palestra Capital Management LLC | $97.9 Mil | 3.8% | 22 | New | 13F |
| Analog Century Management LP | $95.4 Mil | 4.6% | 25 | TRIM -31.0% | 13F |
| Dundas Partners LLP | $89.9 Mil | 7.2% | 49 | Hold | 13F |
| Bristol Gate Capital Partners Inc. | $77.2 Mil | 5.0% | 31 | TRIM -30.3% | 13F |
| Styrax Capital, LP | $68.4 Mil | 4.8% | 17 | New | 13F |
| Glenview Capital Management, LLC | $67.4 Mil | 1.8% | 41 | ADD +52.1% | 13F |
| Broad Run Investment Management, LLC | $50.7 Mil | 8.9% | 24 | TRIM -5.6% | 13F |
| Lountzis Asset Management, LLC | $40.7 Mil | 14.9% | 52 | Hold | 13F |
| Harbor Island Capital LLC | $40.4 Mil | 15.0% | 16 | TRIM -8.9% | 13F |
| Alta Park Capital, LP | $34.7 Mil | 5.6% | 24 | TRIM -17.7% | 13F |
| Stanley Capital Management, LLC | $33.8 Mil | 5.6% | 40 | TRIM -8.3% | 13F |
| Carmel Capital Management L.L.C. | $30.4 Mil | 8.7% | 25 | Hold | 13F |
| California First Leasing Corp | $30.2 Mil | 9.7% | 39 | Hold | 13F |
| Tairen Capital Ltd | $29.7 Mil | 3.2% | 44 | New | 13F |
| Benchstone Capital Management LP | $29.6 Mil | 3.4% | 38 | ADD +73.1% | 13F |
| Nishkama Capital, LLC | $28.7 Mil | 4.1% | 39 | New | 13F |
| Kinetic Partners Management, LP | $28.3 Mil | 1.6% | 49 | New | 13F |
| Summit Street Capital Management, LLC | $20.2 Mil | 2.9% | 31 | TRIM -22.1% | 13F |
AMAT Trade Sentinel
Constructive
CONVICTION RATIONALE
Applied Materials is capturing a surge in AI-related spending, evidenced by accelerating 27% growth in its core systems business and unprecedented multi-quarter forecasts from customers. This powerful demand is balanced by a near-term pause in margin expansion, which is the key item to monitor. The current outlook is constructive, pending confirmation that profitability can resume its upward trend with revenue.
STOCK ARCHETYPE
Capital Equipment & Services(Number of Systems Sold x Average Selling Price) + (Installed Base x Service Attach Rate) Mix shift towards higher-value, more differentiated systems for leading-edge AI applications, which carry higher gross margins.
INVESTMENT THESIS
Evidence suggests the company is a primary beneficiary of the AI infrastructure buildout, with accelerating demand and multi-year visibility.
- Semiconductor Systems revenue growth accelerated to 27% YoY in the latest quarter.
- Largest customers are providing rolling 8-quarter forecasts, indicating long-term demand.
- Company has achieved 13 consecutive quarters of year-over-year gross margin expansion.
- Management raised its Q4 revenue guidance by 14.5% at the last report.
- The company expects its services (AGS) business to grow over 20% in calendar 2026.
PRIMARY RISK
Despite record revenue growth, the company guided Q4 gross margins flat sequentially at 50.4%, suggesting profitability may be hitting a ceiling due to costs or competitive pressure.
- Q4 gross margin is guided to be ~50.4%, roughly flat with the prior quarter.
- Management cited 'ramp headwinds' and 'ramp costs' as limiting near-term margin.
- Trailing operating margin of 31.1% is below key competitor Lam Research's 35.3%.
- The stock fell -7.0% after the last earnings report on these margin concerns.
- Ongoing government investigations into China shipments create headline risk.
| KPI | Status | Rationale |
|---|---|---|
| Semiconductor Systems Revenue Growth | 27% year-over-year growth in Q3 FY2026 - Accelerating | The Semiconductor Systems segment has shown a dramatic and accelerating recovery, inflecting from an 8% year-over-year decline two quarters ago to strong 27% growth in the latest quarter. Management attributes this surge to the "rapid global build out of AI infrastructure" and strong demand for leading-edge foundry logic, DRAM, and advanced packaging equipment. |
| Applied Global Services (AGS) Revenue Growth | 22% year-over-year growth in Q3 FY2026 - Accelerating | The Applied Global Services segment, which provides recurring-like revenue from services and spares, has demonstrated consistent and accelerating growth. Management noted the latest quarter's strength was driven by subscription services and high transactional parts demand, as customers focus on optimizing factory output and yield in a supply-constrained environment. |
| Total Backlog | (As of October 26, 2025) | Represents future revenue from accepted orders and contractual service fees, indicating the pipeline of demand for the company's products and services. |
| Connected Chambers on AIx Platform | >37 thousand (As of August 13, 2026) | Indicates the scale and adoption of the company's advanced, AI-powered service solutions, which are a key driver for growth and value creation in the AGS segment. |
| Customer Demand Visibility | Rolling 8-quarter forecasts (As of August 13, 2026) | Reflects unprecedented long-term commitments from the largest customers, providing high confidence in multi-year demand and allowing for better supply chain and capacity planning. |
Accelerating AI Demand vs. Stalling Margin Leverage
BULL VIEW
Bulls believe temporary 'ramp costs' are masking underlying leverage and that leadership in high-value AI segments will drive margins higher over the multi-year cycle.
CORE TENSION
Can accelerating 27% YoY growth in the core systems business overcome the 'ramp headwinds' that have flattened sequential gross margin guidance at 50.4%?
PREVAILING SENTIMENT
The latest evidence favors the bulls, as 13 consecutive quarters of YoY margin expansion and management's explicit confidence provide a strong track record against a one-quarter guide.
BEAR VIEW
Bears see the flat margin guide as a structural cap, arguing that intense competition and cost inflation will prevent earnings from keeping pace with the historic revenue ramp.
| Timeline | Event & Metric To Watch |
|---|---|
September 2026 | Credit Agreement Expiration Watch: The company's 364-Day Credit Agreement is scheduled to expire. |
10/19/2026 and 10/20/2026 | Peer Earnings Signal Slowdown Watch: Weak guidance from LRCX or TXN on WFE spending, particularly in leading-edge logic and DRAM segments. |
10/20/2026 | Peer Lam Research Earnings Watch: Peer Lam Research (LRCX) is scheduled to report earnings. |
11/12/2026 | Margin Disappointment at Earnings Watch: Q4 reported gross margin versus the 50.4% guide, and the gross margin guidance for Q1 fiscal 2027. |
11/12/2026 | Supply Chain Execution Failure Watch: Any mention of supply constraints, component shortages, or inability to meet customer delivery schedules in the Q4 report. |
11/12/2026 | Company Earnings Report Watch: The company is scheduled to report its next earnings. |
in the coming months | EPIC Center Operations Start Watch: The EPIC Center in Silicon Valley is on track to begin operations. |
No set date | Negative China Investigation News Watch: Any company filing or news report on the status of the investigations, potential fines, or new restrictions. |
Tuesday, Sept. 8 | CFO at Citi Conference Watch: CFO to participate in the Citi 2026 Global TMT Conference. |
Wednesday, Sept. 9 | CEO at Goldman Conference Watch: CEO to participate in the Goldman Sachs Communacopia + Technology Conference. |
| Date | Event | Stock Impact |
|---|---|---|
2026-08-13 | Stock Declines on Margin Concerns Details: Despite record results and raised guidance, the stock sold off -7.0% in the two days around the August 13 earnings call, with press reports citing concerns over flat gross margin guidance. | -7.5% $547.56 -> $506.64 |
2026-08-13 | Record Q3 and Guidance Raise Details: Reported record Q3 revenue of $9.12 billion, up 25% year-over-year, and issued new higher guidance for Q4 revenue and EPS. | -7.5% $547.56 -> $506.64 |
2026-07-09 | Sector Rally on AI News Details: Shares climbed nearly 7% after reports that a major tech company planned to begin manufacturing its in-house AI chip, boosting optimism for wafer fabrication equipment demand. | +5.6% $569.89 -> $601.86 |
2026-06-10 | Product and Capacity Expansion Details: Announced new systems for DRAM and advanced packaging, unveiled the SENZ visual system for smart glasses, and expanded its Singapore manufacturing facility to support AI chip demand. | +10.7% $498.68 -> $552.05 |
2026-05-14 | Q2 Earnings and Outlook Raise Details: Reported record Q2 revenue and raised the calendar 2026 semiconductor equipment growth outlook to over 30%. The stock had a 0.0% two-day reaction. | +0.0% $435.60 -> $435.61 |
2026-03-10 | EPIC Center AI Partnerships Details: The company announced long-term R&D partnerships with SK hynix and Micron to accelerate AI memory innovation at its EPIC Center in Silicon Valley. | +3.6% $338.16 -> $350.26 |
2026-02-12 | Positive Q1 Earnings Reaction Details: The company reported Q1 fiscal 2026 results, leading to a positive two-day stock reaction of 4.0%. Management guided for strong Q2 growth. | +4.4% $338.67 -> $353.65 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: AMAT trades at roughly 57% annualized options-implied volatility versus about 13% for the S&P 500 (4.4x the market), around the 74th percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
LRCX - Lam Research
Higher-Margin PeerLam Research offers a superior profitability profile, with a trailing-twelve-month operating margin of 35.3% compared to Applied Materials' 31.1%.
TXN - Texas Instruments
Broader Semi ExposureAs a major semiconductor manufacturer, Texas Instruments provides exposure to end-market demand trends rather than the capital equipment cycle itself.
Applied Materials is the primary arms dealer for the global AI infrastructure race, supplying the critical and increasingly complex manufacturing tools that enable next-generation semiconductors.
The company's revenue is directly tied to semiconductor manufacturers' capital expenditures, which are currently surging to meet unprecedented demand for AI computing. AMAT's leadership in the most crucial technology areas—leading-edge logic, DRAM, and advanced packaging—positions it to capture a disproportionate share of this growth. The business is currently in a supply-constrained environment where its ability to deliver equipment is the main governor of revenue, providing strong near-term visibility.
Announcements of new fab projects or capacity expansions by major chipmakers (foundry, logic, or DRAM). Reports of continued strong capital investment from cloud service providers in AI infrastructure.
A significant slowdown in AI-related capital spending by cloud providers, or major chipmakers delaying or canceling new fab projects. A rapid resolution of supply chain constraints leading to an equipment glut.
Short-term fluctuations in the stock price of consumer electronics companies or broad market sentiment not directly tied to semiconductor capital equipment spending.
Repricing Catalyst
The ongoing upward revisions to revenue forecasts driven by accelerating AI-related demand, which has consistently exceeded prior expectations and is now providing multi-year visibility.
Semiconductor Systems
$22.4B TTM (73% of Total) · 36% MarginWhat It Is
This segment sells a comprehensive portfolio of capital equipment used to fabricate semiconductor chips to customers in the foundry, logic, and memory (DRAM and NAND) markets.
Who Pays & How
Semiconductor chip manufacturers pay for this equipment to enable the creation of smaller, more complex chip architectures and new materials required for advanced electronic devices, particularly for AI, data centers, and mobile products.
Competition
Applied Global Services (AGS)
$7.2B TTM (23% of Total) · 30% MarginWhat It Is
This segment provides services, spare parts, and factory automation software to semiconductor manufacturers globally.
Who Pays & How
Chip manufacturers pay for these services to optimize the performance of their installed base of manufacturing systems, shorten ramp times, improve system performance, and optimize factory output and operating costs.
Competition
Other
$1.3B TTM (4% of Total) · -83% MarginWhat It Is
This category includes revenues from businesses not included in the main reportable segments, such as the display business which manufactures equipment for that industry.
Who Pays & How
Manufacturers in industries like display pay for this equipment.
Competition
Applied Materials — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Semiconductor Materials & Equipment Resources |
| SEMI |
| Semiconductor Digest |
| Semiconductor Today |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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