Applied Materials demonstrates a strong business model characterized by record revenue growth, high gross margins, and a solid market position in advanced technologies. However, risks associated with dependence on the China market and uncertainty in the ICAPS segment present challenges. The company's focus on innovation and co-innovation strategies positions it well for future growth in the booming semiconductor market, particularly driven by AI advancements.
Analysis Date: February 13, 2025 Last Updated: May 29, 2025
+768%
+24.1% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNASDAQ
IndustrySemiconductors
SectorTechnology
Market Cap$145.58B
CEOMr. Gary E. Dickerson
Applied Materials, Inc. is a company that makes the machines and tools needed to produce tiny computer chips, which are essential for all kinds of electronics like smartphones, laptops, and TVs. They also offer services to help improve the performance of these machines. In addition to chips, they provide equipment for making displays like those found in televisions and computer screens. Headquartered in California, Applied Materials operates in several countries around the world to support the technology industry.
Streams of revenue
Semiconductor Systems:65%
Applied Global Services:22%
Display and Adjacent Markets:13%
Estimations for reference only
Geographic Distribution
China:26%
United States:19%
Taiwan:15%
South Korea:13%
Europe:11%
Japan:7%
Southeast Asia:6%
Other:4%
Estimations for reference only
Core Products
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Service SolutionsEquipment services
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Display TechnologyDisplay manufacturing
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Semiconductor EquipmentChip manufacturing tools
Business Type
Business to Business
Competitive Advantages
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
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AMAT Stock Analysis: Applied Materials, Inc. Investment Guide
AMAT (Applied Materials, Inc.) is a Technology company listed on NASDAQ Global Select. The stock has generated 24.1% annual returns with an overall investment score of None/100.
Applied Materials demonstrates a strong business model characterized by record revenue growth, high gross margins, and a solid market position in advanced technologies. However, risks associated with dependence on the China market and uncertainty in the ICAPS segment present challenges. The company's focus on innovation and co-innovation strategies positions it well for future growth in the booming semiconductor market, particularly driven by AI advancements.
AMAT Key Financial Metrics
AMAT financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 4.7120306066408855/100 and profitability score of 5.0/100 with financial health rated 8.8/100.
About Applied Materials, Inc.
Applied Materials, Inc. is a company that makes the machines and tools needed to produce tiny computer chips, which are essential for all kinds of electronics like smartphones, laptops, and TVs. They also offer services to help improve the performance of these machines. In addition to chips, they provide equipment for making displays like those found in televisions and computer screens. Headquartered in California, Applied Materials operates in several countries around the world to support the technology industry.
AMAT Investment Recommendation
Based on our comprehensive analysis of AMAT, investors should consider the company's strong performance track record, earnings consistency (10/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Technology Sector Analysis
AMAT operates in the Semiconductors industry within the Technology sector. This analysis compares Applied Materials, Inc. performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about AMAT Stock
Is AMAT a good investment?
AMAT (Applied Materials, Inc.) has generated 24.1% annual returns with an overall score of None/100. Applied Materials demonstrates a strong business model characterized by record revenue growth, high gross margins, and a solid market position in advanced technologies. However, risks associated with dependence on the … Investors should consider their risk tolerance and investment goals when evaluating AMAT.
What is AMAT P/E ratio and valuation?
AMAT valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Semiconductors industry and Technology sector benchmarks. The company currently has a valuation score of 4.7120306066408855/100.
Should I buy AMAT stock now?
The decision to buy AMAT stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 8.8/100, and detailed performance metrics to help inform your investment decision.
What are AMAT financial health indicators?
AMAT financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 8.8/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does AMAT compare to competitors?
AMAT performance is benchmarked against Semiconductors industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Applied Materials, Inc.'s market position.
What are AMAT historical returns?
AMAT has generated 24.1% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
AMAT Key Investment Metrics Summary
Annual Return: 24.1%
Valuation Score: 4.7120306066408855/100
Profitability Score: 5.0/100
Financial Health Score: 8.8/100
Growth Score: 0.4492681315367917/100
Earnings Beat Rate: 10/10 quarters
Sector: Technology
Industry: Semiconductors
Exchange: NASDAQ Global Select
Market Cap: 145576383350
AMAT Investment Thesis
Applied Materials, Inc. (AMAT) represents an excellent investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
Reasonable PE Ratio
Strong Price to Sales Ratio
High Return on Equity
Strong Profit Margins
Low Debt Levels
Strong Liquidity Ratios
Record Revenue Growth
Strong Market Position and Competitive Advantage
High Gross Margin
Growth Opportunities in AI and Advanced Technologies
Innovative Solutions and Co-Innovation Strategy
Investment Risks
High Price to Cash Flow Ratio
Above Average PB Ratio
Moderate Operating Profit Margin
Cash Ratio Below 1
Exposure to China Market Risks
Uncertainty in ICAPS Market
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