Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, in Silicon Valley.
| Revenue (TTM) | $30.84B |
| Gross Profit (TTM) | $15.23B |
| EBITDA | $10.15B |
| Operating Margin | 33.70% |
| Return on Equity | 41.10% |
| Return on Assets | 15.50% |
| Revenue/Share (TTM) | $38.83 |
| Book Value | $32.29 |
| Price-to-Book | 9.89 |
| Price-to-Sales (TTM) | 8.56 |
| EV/Revenue | 8.15 |
| EV/EBITDA | 21.81 |
| Quarterly Earnings Growth (YoY) | 42.80% |
| Quarterly Revenue Growth (YoY) | 24.80% |
| Shares Outstanding | $793.60M |
| Float | $790.48M |
| % Insiders | 0.33% |
| % Institutions | 85.67% |
Volatility is currently expanding
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.
Semiconductor sales are poised to surge, driven by rising demand for chips across multiple applications. Nvidia, Broadcom, and Micron dominate their respective semiconductor niches, and they are trading attractively right now.
A month-long decline has erased a big piece of the 2026 rally at Applied Materials (NASDAQ:AMAT | AMAT Price Prediction), and the chip equipment maker's next earnings report is now its biggest near-term test.
Zacks.com users have recently been watching Applied Materials (AMAT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Taiwan Semiconductor Manufacturing consistently generates a larger top-line result than Applied Materials, maintaining an uninterrupted lead across the past eight quarters. As reported in U.S. dollars, Taiwan Semiconductor Manufacturing demonstrates a steady quarter-over-quarter upward trend in revenue across the observed timeline, while Applied Materials displays a flatter long-term trajectory characterized by occasional increases.
Chip equipment stocks are leading a third straight day of gains across semiconductors as SK Hynix‘s (NASDAQ:SKHY) view that the memory shortage lasts into 2030 points to years of fab building.
Parnassus Value Equity Fund (Investor Shares) returned -1.38% (net of fees) for the quarter, underperforming the Russell 1000 Value Index's 2.61%. Top contributors include Thermo Fisher, CME Group, NICE, Willis Towers Watson and Verizon. Bottom contributors include Cummins, Applied Materials, Brookfield Renewable, Home Depot and AstraZeneca.
Applied enters into agreement to increase its investment to approximately 20 percent of outstanding shares, reinforcing the companies' long-term strategic partnership in advanced packaging Applied enters into agreement to increase its investment to approximately 20 percent of outstanding shares, reinforcing the companies' long-term strategic partnership in advanced packaging
Leading-edge logic, memory, and advanced packaging exposure underscore AMAT's tailwinds as an AI infrastructure partner to numerous leading foundries. Accelerating chip demand, expanding fab projects, and robust service monetization underpin their doubled capacity and top/bottom-line outperformance by 2028. The meltdown has triggered AMAT's cheaper P/E of 29.38x and 3Y PEG of 0.81x, with it triggering the rich >80% upside potential to my LTPT of $696.
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