Applied Materials is experiencing a powerful AI-driven demand cycle, evidenced by a re-acceleration to 24.8% year-over-year revenue growth in 2026Q3 and a structural expansion in gross margins to 50.3%. This growth is underpinned by exceptional operating lever...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has re-accelerated sharply to 24.8% year-over-year in 2026Q3, while gross margins have expanded structurally from a 47.3% baseline in 2024 to 50.3%, indicating strong pricing power and a favorable mix shift.
Continued and potentially longer-than-expected AI equipment cycles are expected to fuel demand for AMAT's products, driven by heavy investments from hyperscalers.
AMAT's proprietary vacuum and deposition systems are essential for advanced chip nodes, including 2nm technology, enhancing their competitive edge.
AMAT has shown consistent earnings growth, with positive guidance for future quarters and strong performance in services and spares revenue.
AMAT's P/E ratio has significantly increased, suggesting it may be overvalued relative to earnings and historical averages.
The semiconductor industry is cyclical, and a slowdown in customer spending could negatively impact AMAT's performance despite AI demand.
Restrictions on tool shipments to China pose a near-term revenue risk, alongside broader geopolitical uncertainties.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 13, 2026 | $3.50+2.9% vs $3.40 | $9.1B+1.3% vs $9.0B |
Q2 2026 May 14, 2026 | $2.86+6.7% vs $2.68 | $7.9B+3.0% vs $7.7B |
Q1 2026 Feb 12, 2026 | $2.38+7.7% vs $2.21 | $7.0B+2.1% vs $6.9B |
Q4 2025 Dec 12, 2025 | $2.17+2.8% vs $2.11 | $6.8B+1.7% vs $6.7B |
REX Advisers will launch the REX AI Chipmaking ETF (CHIP) on Nasdaq Wednesday, according to the fund's prospectus. The fund invests in the equipment makers that build the physical machinery behind artificial intelligence (AI) chips, rather than the companies that design them.
Applied Materials is upgraded to a buy as valuation has corrected while fundamentals have strengthened, creating an attractive risk/reward setup. AI-driven demand is accelerating Applied Materials' growth, with Q3 revenue up 25% YoY and robust Q4 guidance implying 51% YoY growth. Margins continue to expand, with Q3 gross margin up 150 bps and operating margin expected to rise 640 bps YoY in Q4, reflecting strong cost/expense control.
Applied Materials (AMAT) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
U.S.-China trade talks could ease tariff pressures, putting semiconductor, technology, retail and auto ETFs in focus as investors assess the potential impact on China-exposed companies.
Benchmark AMAT against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Applied Materials, Inc. (AMAT)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $472.46 | $375.11B | 54.56 | 4.39% | 24.67% | 35.51% | 0.36% | |
| $310.96 | $388.88B | 53.99 | 26.02% | 31.27% | 66.97% | — | |
| $188.32 | $246B | 51.45 | 11.71% | 35.57% | 85.38% | — | |
| $1747.90 | $673.67B | 61.68 | 15.58% | 29.71% | 51.95% | — | |
| $283.81 | $14.12B | 102.09 | 1.82% | 11.84% | 6.5% | — | |
| $369.95 | $11.76B | 46.48 | 30.96% | 28.84% | 20.25% | — |
Applied Materials, Inc. (AMAT) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Applied Materials, Inc. (AMAT) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 27, 2026·SEC
Aug 13, 2026·SEC
May 14, 2026·SEC
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Applied Materials, Inc. (AMAT) stock FAQ — growth, dividends, profitability & financials explained
Applied Materials, Inc. (AMAT) reported $30.84B in revenue for fiscal year 2025. This represents a 644% increase from $4.14B in 1996.
Applied Materials, Inc. (AMAT) grew revenue by 4.4% over the past year. Growth has been modest.
Yes, Applied Materials, Inc. (AMAT) is profitable, generating $9.27B in net income for fiscal year 2025 (24.7% net margin).
Yes, Applied Materials, Inc. (AMAT) pays a dividend with a yield of 0.36%. This makes it attractive for income-focused investors.
Applied Materials, Inc. (AMAT) has a return on equity (ROE) of 35.5%. This is excellent, indicating efficient use of shareholder capital.
Applied Materials, Inc. (AMAT) generated $6.25B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
