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%.
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 11/7/2026, 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 |
Chicago Partners Investment Group LLC grew its position in shares of Applied Materials, Inc. (NASDAQ: AMAT) by 19.6% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 11,022 shares of the manufacturing equipment provider's stock after acquiring an additional 1,803 shares during
Applied Materials' stock declines amid semiconductor industry concerns, but AI-driven equipment demand and advanced packaging growth are tailwinds.
Microsoft was the largest contributor, with its shares up 37.8% for the quarter. KLA and Applied Materials were the largest detractors, falling 35.3% and 29.2%. On a relative basis, three of the largest detractors were companies we did not own: NVIDIA, Apple, and Meta, which rose 14.3%, 15.2%, and 28.8%. We made one change to the portfolio during the quarter, purchasing Garmin and selling Verisk, and rebalanced outliers back to approximately equal weights during the same trade window.
AIA Group Ltd raised its position in Applied Materials, Inc. (NASDAQ: AMAT) by 402.3% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 8,831 shares of the manufacturing equipment provider's stock after purchasing an additional 7,073 shares during the quarter. AIA Group
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 |
|---|---|---|---|---|---|---|---|
| $332.72 | $264.17B | 28.72 | 4.39% | 30.05% | 40.44% | 0.51% | |
| $200.44 | $250.66B | 29.79 | 26.02% | 32.34% | 71.75% | 0.5% | |
| $138.49 | $180.91B | 34.53 | 11.71% | 36.25% | 87.02% | 0.58% | |
| $1424.75 | $549.12B | 36.37 | 15.58% | 34.14% | 63.91% | 0.51% | |
| $173.28 | $8.62B | 64.92 | 1.82% | 11.84% | 6.5% | — | |
| $313.18 | $9.95B | 36.07 | 30.96% | 29.87% | 21.04% | — |
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 over the trailing twelve months. Revenue was $28.37B in fiscal year 2025. That is 584% more than the $4.14B of fiscal year 1996.
Applied Materials, Inc. (AMAT) grew revenue by 7.8% over the trailing twelve months, compared with the twelve months before.
Yes. Applied Materials, Inc. (AMAT) earned $9.27B in net income over the trailing twelve months (a 30.1% net margin).
Yes. Applied Materials, Inc. (AMAT) pays a dividend that yields 0.51% at the current price, a small yield.
Applied Materials, Inc. (AMAT) had a return on equity (ROE) of 40.4% over the trailing twelve months. That is well above the market's typical 10-15%.
Applied Materials, Inc. (AMAT) generated $5.62B in free cash flow over the trailing twelve months.
