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AM

AMAT Stock Analysis

NMS · Technology · Semiconductor Equipment & Materials

$476.11

-8.89 (-1.83%)

OverviewTechnicalRiskWhaleEarningsOptionsShort InterestESG

AMAT Interactive Price Chart & Trading Signals

AMAT Stock Snapshot — Valuation, Risk & Technical Signals

AMAT Key Fundamentals, Analyst Targets & Company Profile

Key Financial Ratios

Market Cap

$377.84B

P/E Ratio

41.08

Forward P/E

25.79

PEG Ratio

0.96

P/B Ratio

14.74

EPS

$11.59

Dividend Yield

0.44%

52W Range

$202.87 – $739.67

Beta

1.60

Volume

0.9M

ROE

41.1%

Profit Margin

30.1%

Revenue Growth

24.8%

Gross Margin

49.4%

EV/EBITDA

37.72

Analyst Target

$638.63

The trailing price-to-earnings ratio stands at 41.1x. Forward P/E of 25.8x implies earnings expansion expected. Price-to-book is 14.74x. EV/EBITDA sits at 37.72x. Market capitalization is $377.84B. Revenue is growing at 24.8% on a trailing basis. Earnings are expanding at 42.8%. Profit margins are 30.1%. Return on equity is 41.1%. Beta of 1.60 indicates elevated market sensitivity.

Analyst Consensus

Recommendation

Strong Buy

Low Target

$358.00

Mean Target

$638.63

High Target

$900.00

Based on 35 analysts

About AMAT

Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

United States38,900 employeesWebsite ↗

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AMAT Deep Dive Analysis

Bottom Line

Verdict

Overvalued

Best for

Growth-oriented investors

Watch out for

Premium valuation, High volatility

Non-zero inputs

4/5

Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.

Applied Materials, Inc. (AMAT) trades above our multi-model fair value estimate of $157.59 by approximately 66.9%. Trailing P/E: 41.1x. Profitability signals include profit margin of 30.1% and return on equity of 41.1%. Recent growth metrics show revenue growth of 24.8% and earnings growth of 42.8%. Risk profile: elevated market beta of 1.60. Consensus: strong_buy.

Valuation, Growth & Risk

Valuation

Overvalued

P/E 41.1x

Price is above what fundamentals suggest.

Growth

Expanding

Rev 24.8%

Revenue is outpacing the market.

Risk

Elevated

Beta 1.60

Expect bigger swings than the market.

Valuation Snapshot

Applied Materials, Inc. (AMAT) trades above our multi-model fair value estimate of $157.59 by approximately 66.9%. The trailing price-to-earnings ratio stands at 41.1x. Forward P/E of 25.8x suggests earnings compression ahead. Price-to-sales is 12.3x. Price-to-book is 14.7x. EV/EBITDA sits at 37.7x. Market capitalization is $377.84B.

Why it matters: Paying a premium works only if the company keeps growing faster than expected.

Growth & Profitability

Revenue is growing at 24.8% on a trailing basis. Earnings are expanding at 42.8%. Profit margins are 30.1%. Return on equity is 41.1%. Return on assets is 15.5%.

Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.

Risk Profile

Beta of 1.60 indicates elevated market sensitivity. Net debt position is $-1887000576.00.

Why it matters: A riskier stock can fall more in a downturn. Make sure your portfolio can handle the volatility.

Analyst Context

Analyst consensus target of $638.63 implies 34.1% upside. Target range spans $358.00 to $900.00. 35 analysts cover the stock. Consensus recommendation: strong_buy.

Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.

Investor Fit

Premium valuation is supported by above-average growth, potentially fitting growth-oriented strategies.

Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.

Data Methodology & Sources

Market Data (Facts)

  • Price, volume, and market cap: Yahoo Finance (may be delayed)
  • P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
  • Analyst estimates: Yahoo Finance (coverage and update times vary)
  • Insider transactions: Yahoo Finance (reporting may be delayed)

QuantSoar Model (Derived)

  • Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
  • Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
  • Composite Score: 40% Value + 30% Momentum + 30% Risk
  • Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.

Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.

AMAT Overvalued

Applied Materials, Inc. (AMAT) trades above our multi-model fair value estimate of $157.59 by approximately 66.9%.

Frequently Asked Questions

ValuationIs AMAT stock overvalued right now?
Based on our discounted cash flow and relative valuation models, AMAT appears to trade above fair value by approximately 66.9%. This suggests the market may be pricing in elevated growth expectations or sentiment premiums.
ValuationWhat is AMAT fair value based on current fundamentals?
Our fair value estimate for AMAT is $157.59, derived from discounted cash flow, dividend discount, and relative valuation multiples. The estimate assumes a discount rate of 9.0% and terminal growth of 2.5%.
RiskHow risky is AMAT compared with other stocks?
Risk profile for AMAT: a beta of 1.60 indicates above-average market sensitivity. Investors should weigh macro exposure against their own risk tolerance.
GrowthIs AMAT still growing?
Latest trailing metrics show revenue growth of 24.8% and earnings growth of 42.8%. Profit margins are 30.1%.
AnalystWhat do analysts think about AMAT?
Analyst consensus target is $638.63, implying 34.1% upside. The street recommendation is "strong_buy".
DividendDoes AMAT pay a dividend?
Yes. AMAT currently offers a dividend yield of 0.4%.
CatalystWhat could change the investment case for AMAT?
Key catalysts include Technology sector dynamics, interest rate shifts, and company-specific earnings surprises. Monitor macro risk scores and analyst estimate revisions for early signals.

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Phasakorn Traklang (Peach)

About the Author

Phasakorn Traklang (Peach) — Founder

Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.

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Investment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC

Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.