Applied Materials (NASDAQ:AMAT) Global Services Revenue rose steadily from around $3.85 billion in FY’19 to about $5 billion in FY’21. Trefis expects the metric to rise to over $6 billion by FY’23. The Global Services business is focused on solutions to optimize equipment and fab performance and productivity.
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Semiconductor manufacturers are looking to cut costs and improve efficiencies and this could drive demand for the company’s services.
We estimate AMAT valuation at $162 per share, about 16% ahead of the current market price. This represents a P/EBITDA multiple of 28x for the company based on our forecast for Applied Materials EBITDA for the current fiscal year.
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|S&P 500 Return||-7%||-7%||97%|
|Trefis MS Portfolio Return||-10%||-10%||252%|
 Month-to-date and year-to-date as of 1/25/2022
 Cumulative total returns since the end of 2016