The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 15 | 51.1x | 20.8x | Bottom tier | |
Growth | 56 | 3.3% | 6.1% | Around median | |
Quality | 81 | 31.6% | 6.6% | Top tier | |
Safety | 89 | — | 0.7x | Top tier | |
Capital Return | 23 | 0.36% | 2.02% | Bottom tier | |
Momentum | 93 | 219.2% | 4.1% | Top tier | |
Sentiment | 56 | 20 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Applied Materials, Inc. (AMAT) is a global leader in materials engineering, providing equipment, software, and services for the manufacturing of advanced semiconductors and flat panel displays. The company generates the majority of its revenue through its Semiconductor Systems segment, which focuses on selling manufacturing equipment, as well as the Applied Global Services (AGS) segment, which provides technical support services and software to improve factory efficiency. The company benefits directly from the acceleration of dedicated computing infrastructure for artificial intelligence, as its technologies play a pivotal role in enabling advanced logic chips, high-bandwidth memory, and advanced packaging.
During the first quarter of 2026, the company achieved revenue of $7.00 billion, recording a gross profit of $3.40 billion and a net income of $2.00 billion, equivalent to earnings per share of $2.54. In its recently announced second-quarter fiscal 2026 results, the company recorded record revenue of $7.91 billion, an 11% increase year-over-year, driven by strong demand for advanced manufacturing platforms. The Semiconductor Systems segment also achieved record sales of $5.97 billion, while the Applied Global Services segment achieved record revenue of $1.67 billion thanks to increased factory utilization rates globally.
Analysts reach a consensus overall recommendation of 'Buy' for Applied Materials, Inc. stock, with their estimated average price target at $533.65, a high target set at $650, and a low target at $425. The stock is currently trading below the analysts' average price target, reflecting market optimism about its sustainable growth prospects and historical margins compared to its 52-week trading range of $154.47 to $593.81.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The company expects to deliver strong results in the third fiscal quarter of 2026, with revenue estimated at approximately $8.95 billion (an increase of nearly 23% year-over-year) with a margin of error of $500 million. It also expects non-GAAP EPS to be around $3.36 (an increase of nearly 36% year-over-year). Non-GAAP gross margin is also expected to rise slightly to about 50.1%, with operating expenses estimated at approximately $1.485 billion.
The services segment represents a key driver of stable growth by providing maintenance and advanced analytics services for the expanding installed base of equipment. This segment achieved record revenue of $1.67 billion in the second fiscal quarter of 2026, a 17% increase year-over-year. Management expects the segment to grow in the mid-20% range in the future, supported by connecting more than 35,000 process chambers to the AIx software system, which utilizes artificial intelligence to improve productivity and quality.
The company has made strategic moves to boost its production capacity in Singapore to meet the growing demand for AI chips. This expansion includes a planned investment of $500 million to double the production of these chips. Additionally, the company opened a new $600 million advanced facility in June 2026 to support advanced manufacturing infrastructure and help suppliers meet growing demand.
Automated analysis for informational purposes only — not investment advice.
The EPIC platform is a new global collaborative model designed by the company to reduce the time to market for innovative technologies from the research stage to full commercial manufacturing. The new EPIC center in Silicon Valley, scheduled to begin operations in the fall of 2026, is the cornerstone of this platform. Giants have joined as founding partners, such as TSMC, Micron, Samsung, and SK Hynix, giving Applied Materials clear visibility into product development for several generations to come and securing pre-design contracts.
Generative and Agentic AI contribute to increasing the demand for dedicated computing infrastructure, as agentic models that autonomously plan and execute tasks require a computing architecture that relies heavily on CPUs, RAM, and storage drives. The company expects advanced logic, memory, and advanced packaging to drive more than 80% of the annual growth in global wafer fabrication equipment spending for 2026 and 2027. These are the specific areas where the company holds a leading market share.