AMAT Stock Analysis & Forecast (2026)

Applied Materials, Inc. Technology Semiconductor Equipment & Materials
$394.26
Current Price
75%
Buy
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Data refreshed: April 16, 2026

Key Financial Metrics

Market Cap
$312.89B
P/E Ratio (TTM)
40.5x
P/E Forward
28.1x
Revenue Growth
-2.1%
Gross Margin
48.7%
Net Margin
27.8%
Return on Equity
38.9%
Debt/Equity
0.33

AI Analysis Summary

Applied Materials, Inc. (AMAT) is a Technology company in the Semiconductor Equipment & Materials industry with a 75% Buy Score. Key strengths include Gross Margin (48.7%), Net Margin (27.8%), Return on Equity (38.9%). Areas to watch: Revenue Growth (-2.1%). Our AI evaluates 8 fundamental categories including revenue growth, margin quality, balance sheet strength, cash flow generation, return on capital, and valuation metrics.

Revenue Growth: Weak Gross Margin: Good Net Margin: Excellent Return on Equity: Excellent Debt/Equity: Moderate

This analysis is generated by StrongBuyAnalytics AI using publicly available financial data from SEC filings, earnings reports, and market feeds. It is not personalized investment advice. See our methodology and disclaimer.

AMAT Fundamental Analysis Report
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75%
Strong Buy Score
  • 8 Fundamental Categories Analyzed
  • Revenue & Growth Trends
  • Margin & Profitability Analysis
  • Balance Sheet Strength
  • Cash Flow Quality
  • Valuation Assessment
  • AI-Powered Investment Insights
Get Your Free AMAT Report

How It Works: AI Stock Analysis in 60 Seconds

See how our AI analyzes AMAT fundamentals to generate buy/sell signals and Strong Buy Scores.

Why AMAT Has a 75% Score

Our AI evaluates Applied Materials, Inc.'s fundamentals across multiple dimensions. Here is what is driving the current Buy rating:

Recent Catalysts for AMAT

Key developments and data points that may impact Applied Materials, Inc.'s trajectory:

Earnings grew 75.2% — accelerating profitability could drive re-rating.
Wall Street consensus target is $422.97 (+7.3% from current price), based on 32 analyst estimates.
Analyst consensus recommendation: Buy.
Institutional ownership at 85.5% — strong smart-money backing.

AMAT vs. Peers

How Applied Materials, Inc. stacks up against comparable Technology companies on key metrics:

Ticker Price Market Cap P/E Rev Growth Net Margin ROE
AMAT $394.26 $312.89B 40.5x -2.1% 27.8% 38.9%
AAPL $266.43 $3.92T 33.7x 15.7% 27.0% 152.0%
MSFT $411.22 $3.06T 25.7x 16.7% 39.0% 34.4%
GOOGL $337.12 $4.08T 31.2x 18.0% 32.8% 35.7%
META $671.58 $1.70T 28.6x 23.8% 30.1% 30.2%

Main Risks for AMAT Investors

Every investment carries risk. Here are the specific risk factors our analysis identified for Applied Materials, Inc.:

Revenue Growth (-2.1%)
High beta of 1.64 means the stock is 64% more volatile than the market — expect larger drawdowns in corrections.
Trailing P/E of 40.5x prices in significant growth — any miss could trigger a sharp selloff.

Generate the full PDF report for a detailed risk-reward framework and bear-case scenarios.

AMAT Balance Sheet & Cash Flow

A snapshot of Applied Materials, Inc.'s financial health based on the most recent filings:

Total Cash
$8.51B
Total Debt
$7.19B
Current Ratio
2.71
FCF Yield
1.4%
EBITDA
$8.89B
Operating Margin
29.9%

Data sourced from the latest SEC filings. Generate the full PDF report for detailed balance sheet and cash flow commentary.

AMAT Valuation Snapshot

Trailing P/E
40.5x
High expectations
Forward P/E
28.1x
Earnings growth expected
Price / Book
14.4x
High intangible value
Analyst Target (Mean)
$422.97
Range: $280 – $500
Dividend Yield
0.54%
5Y avg: 0.80%
52-Week Price Range — AMAT is trading at 95% of its range
$132.80 (52W Low) $407.29 (52W High)

Is AMAT a Buy Right Now?

Based on our AI-powered fundamental analysis, AMAT has a Strong Buy Score of 75%, earning a "Buy" rating. This score synthesizes 8 key financial metrics to provide an objective investment signal.

Strong Buy Signal

Applied Materials, Inc. demonstrates robust fundamentals across multiple categories. Key strengths include Gross Margin (48.7%) and Net Margin (27.8%). The stock shows characteristics typically associated with outperformers.

AMAT AI Buy & Sell Signals Explained

Our AI analyzes Applied Materials, Inc.'s financial statements to generate buy/sell signals based on quantitative metrics, not market sentiment or news headlines. Here's what drives the 75% score:

  • Revenue Growth: -2.1% year-over-year (declining)
  • Gross Margin: 48.7% (strong pricing power)
  • Net Margin: 27.8% (highly profitable)
  • Return on Equity: 38.9% (excellent capital efficiency)

Generate the full PDF report for complete category-by-category scoring and AI-powered investment recommendations.

Key Support / Demand Zones

Technical traders can view real-time demand and supply zones for AMAT on our Demand Zones page. These zones identify key price levels where institutional buying or selling has historically occurred.

With AMAT currently trading at $394.26, our system monitors proximity to these critical levels and can alert you when the stock approaches support or resistance zones.

Subscribe to demand zone alerts to receive real-time notifications when AMAT reaches key technical levels.

Earnings & Revenue Outlook

Applied Materials, Inc. operates in the Technology sector, specifically in Semiconductor Equipment & Materials. Understanding earnings trends is crucial for forecasting AMAT's trajectory.

Current revenue growth of -2.1% trails the average company.

Visit our Earnings Calendar to track upcoming AMAT earnings dates and historical beat/miss patterns. Sign up for earnings alerts to get notified before announcements.

AMAT Stock Forecast (Next 3–12 Months)

Our AI projects AMAT's trajectory based on current fundamentals and historical patterns. With a 75% Strong Buy Score, here's what the data suggests:

Bullish Outlook: Applied Materials, Inc. shows strong fundamental momentum. Net margins of 27.8% indicate pricing power and operational efficiency. Stocks with similar profiles have historically outperformed over 12-month periods.

For a complete 12-month price forecast with specific bull/bear scenarios, generate the full PDF report.

Valuation Metrics (P/E, Growth, Margins)

Understanding valuation is critical for determining if AMAT is fairly priced. Here's the current snapshot:

  • Market Capitalization: $312.89B
  • P/E Ratio (TTM): 40.5x (high expectations)
  • Forward P/E: 28.1x (based on analyst estimates)
  • Debt/Equity: 0.33 (conservative balance sheet)

Our AI weighs these metrics against growth rates and margin quality to determine if AMAT offers compelling risk-adjusted returns at current prices.

Bull Case for AMAT

Here's why investors are bullish on Applied Materials, Inc.:

  • Gross Margin (48.7%)
  • Net Margin (27.8%)
  • Return on Equity (38.9%)

With a 75% Strong Buy Score, the bull case is well-supported by current fundamentals. The stock exhibits characteristics of quality compounders that tend to outperform long-term.

Bear Case & Risks for AMAT

Every investment carries risk. Here are potential concerns for AMAT investors:

  • Revenue Growth (-2.1%)

The full PDF report includes a detailed bear case analysis with specific risk ratings for each category.

Summary / 12-Month Outlook

AMAT Summary: Applied Materials, Inc. earns a 75% Buy Score based on AI analysis of fundamental data. Trading at $394.26 with a $312.89B market cap, the stock shows strong fundamentals supporting a bullish 12-month outlook.

Bull Case: Gross Margin (48.7%), Net Margin (27.8%)

Watch: Revenue Growth (-2.1%)

For the complete analysis with specific price considerations, growth projections, and AI-powered buy/hold/sell recommendations, generate your free AMAT PDF report.

Learn More About Stock Analysis

Deepen your understanding of the concepts used in this AMAT analysis:

Fundamental Analysis Guide

Learn how to evaluate stocks using financial statements and key metrics.

Understanding P/E Ratio

What P/E ratio tells you about a stock's valuation and growth expectations.

Return on Equity (ROE)

Why ROE matters for stock selection and how to interpret it.

Stock Valuation Methods

Compare DCF, P/E, and other approaches to value stocks like AMAT.

What Are Demand Zones?

Find key support and resistance levels for AMAT and other stocks.

How to Read Earnings Reports

Understand earnings per share, revenue surprises, and guidance.

Related Tools for AMAT

Demand Zone Analyzer AMAT Live Chart Earnings Calendar Institutional Ownership Sector Scanner Average Down Calculator

Frequently Asked Questions about AMAT

Is AMAT a good buy right now?
AMAT currently has a Strong Buy Score of 75% (Buy). Based on AI analysis of fundamentals, AMAT shows strong buy signals with solid revenue growth, margins, and return metrics. Generate a free PDF report for specific buy/hold/sell recommendations.
What is the AMAT stock forecast for 2026?
Our AI forecasts AMAT based on current fundamentals: revenue growth of -2.1%, net margin of 27.8%, and P/E of 40.5x. The 75% Strong Buy Score reflects our outlook combining growth trajectory, margin quality, and valuation. See the full 12-month projection in your PDF report.
What are key support and resistance levels for AMAT?
View real-time AMAT demand zones (support) and supply zones (resistance) on our Demand Zones page. With AMAT currently at $394.26, you can see how close the stock is to key technical levels. Subscribe to get alerts when AMAT approaches these zones.
How do AMAT fundamentals compare to peers?
Applied Materials, Inc. operates in the Technology sector. Key metrics for peer comparison: Gross margin 48.7%, ROE 38.9%, Debt/Equity 0.33. The 75% Strong Buy Score factors in how these metrics stack up against industry averages. Data is refreshed daily.
Is the AMAT analysis PDF report free?
Yes! Your first AMAT fundamental analysis report is completely free with no credit card required. The PDF includes the full Strong Buy Score breakdown, all 8 fundamental categories analyzed, AI-powered insights, and specific investment recommendations. Additional reports are available through our subscription plans starting at $24/month.
What is Applied Materials, Inc.'s market cap and P/E ratio?
Applied Materials, Inc. (AMAT) has a market cap of $312.89B and a trailing P/E ratio of 40.5x (forward P/E: 28.1x). These valuation metrics are key factors in our Strong Buy Score calculation. See all metrics in the PDF report for comprehensive valuation analysis.

This AMAT analysis is for educational and informational purposes only and does not constitute financial advice. All data is sourced from public filings and market feeds. Past performance does not guarantee future results. Read our full disclaimer.