Applied Materials, Inc. (AMAT) Stock

Applied Materials, Inc. (AMAT) is a Technology stock trading at $579.38 (as of 2026-07-15), with a market capitalization of $460.01B and a trailing P/E of 54.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits. This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products. The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices. The company operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.

Understand Applied Materials, Inc.: how it makes money

Applied Materials builds and sells semiconductor and display manufacturing equipment, plus related services and software, to companies that fabricate chips and other electronic components.

Applied Materials' profit model is driven by a mix of Semiconductor Systems equipment sales and Applied Global Services, including recurring revenue (AGS recurring revenue - Supply), with overall results tied to end-market investment in semiconductor and display manufacturing.

Revenue by segment (latest quarter)
Semiconductor Systems$6.0B
Applied Global Services$1.7B
Display and Adjacent Markets$0.3B

Business quality (Strong): Segment names and revenue split are provided, and operating metric candidates include both equipment-driven revenue and AGS recurring revenue, which supports a coherent view of the profit engine. However, only one latest financial snapshot (quarter period and consolidated margins) is included here, so trend assessment is limited.

Valuation: At 53× earnings, AMAT trades in line with the Semiconductors average (51×). Note: one-time items can distort reported P/E.

Bull case

  • Multi-part offering (equipment, services, and software): The company provides manufacturing equipment, services, and software to semiconductor and display related industries through three reportable segments, Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
  • Services component highlighted by recurring revenue: Operational KPI candidates include AGS recurring revenue - Supply, which suggests investors track the durability of the services mix alongside equipment revenue.
  • Clear segment revenue visibility: The provided segment revenue figures show Semiconductor Systems is the largest contributor, with additional diversification from Applied Global Services and Display and Adjacent Markets.

Bear case

  • End-market spending risk: Because Semiconductor Systems manufacturing equipment is used to fabricate semiconductor chips or integrated circuits, results can be sensitive to customer decisions affecting semiconductor and related manufacturing investment.
  • Regional concentration signals potential exposure: China revenue is listed as a discrete operating KPI candidate, indicating measurable exposure to that geography.
  • Smaller Display segment may limit diversification benefit: Display and Adjacent Markets revenue is provided as a much smaller segment compared with Semiconductor Systems, so shifts in demand there may have limited impact on overall results.
Valuation — source: SEC EDGAR (first-party)
Price$579.38
Market Cap$460.01B
P/E Ratio54.1
EV / EBITDA53.0
Price / Book19.24
Price / Sales15.85
FCF Yield1.3%
DCF Value (model)$111.05
DCF Upside vs Price-80.8%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$28.37B
Net Margin24.7%
Revenue Growth (YoY)11.4%
EPS Growth (YoY)33.7%
FCF Growth (YoY)-22.1%
Financial Health — source: SEC EDGAR
Altman Z-Score21.45 (safe)
Piotroski F-Score7/9 (strong)
Valuation vs Sector & Industry
Stock P/E54.1
Sector P/E (Technology)34.5
Industry P/E (Electronic Equipment)42.5
vs Sector56.7%
vs Industry27.2%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Insider Sells (12mo)3
Top Institutional HolderBlackRock, Inc. ($26.99B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryElectronic Equipment
CEOGary E. Dickerson
Employees36,000
CountryUS
IPO Date1980-03-17

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AMAT earnings history · AMAT institutional & insider holders · AMAT KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.