olivLaw · US equity research
Applied Materials, Inc. AMAT
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
Applied Materials is the leader in materials engineering solutions used to produce virtually every semiconductor in the world. Net revenue was 28.368 bn USD in fiscal 2025, and third-quarter fiscal 2026 revenue reached 9.115 bn USD, up 25%. Dependence on customers' capital spending for chip capacity remains the main risk factor.
At the close of 03 Nov 2026, Applied Materials, Inc. (AMAT) stock was 381.92 USD (+1.97% on the day), with market capitalisation 303.1 bn USD, P/E 32.9 on diluted EPS of 11.59 USD over the last 12 months, dividend yield 0.52%, beta 1.98, 52-week range 220.23–723.00 USD. Latest reported quarter (Q3 2026): revenue of 9.1 bn USD (+24.8% YoY), net income of 2.5 bn USD (+42.7% YoY), diluted EPS 3.17 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 36.0
- weak (30–45)
- Bollinger (20, 2)
- 332.82 – 520.43
- in the lower half of the band · %B 0.26 · band width 44.0%
- SMA 50 / 200
- 453.26 / 445.06
- mixed trend
- MACD (12, 26, 9)
- -24.85 / -22.18
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −29.3% | −2.0% | −27.3 pp | — |
| 3 months | −30.1% | −2.2% | −28.0 pp | — |
| 6 months | −7.0% | +4.3% | −11.3 pp | — |
| Year to date | +48.6% | +10.6% | +38.0 pp | — |
| 1 year | +60.7% | +10.5% | +50.2 pp | +49.3% |
| 3 years | +173.3% | +73.7% | +99.6 pp | +135.5% |
| 5 years | +154.4% | +61.7% | +92.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 26 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.0 bn | 7.2 bn | 7.1 bn | 7.3 bn | 6.8 bn | 7.0 bn | 7.9 bn | 9.1 bn |
| Cost of revenue | 3.7 bn | 3.7 bn | 3.6 bn | 3.7 bn | 3.5 bn | 3.6 bn | 4.0 bn | 4.5 bn |
| Gross profit | 3.3 bn | 3.5 bn | 3.5 bn | 3.6 bn | 3.3 bn | 3.4 bn | 3.9 bn | 4.6 bn |
| Research & development | 858.0 m | 859.0 m | 893.0 m | 901.0 m | 917.0 m | 928.0 m | 1.0 bn | 1.1 bn |
| SG&A | — | 462.0 m | 423.0 m | 428.0 m | 455.0 m | 411.0 m | 397.0 m | 411.0 m |
| Operating income | 2.0 bn | 2.2 bn | 2.2 bn | 2.2 bn | 1.7 bn | 1.8 bn | 2.5 bn | 3.1 bn |
| Depreciation & amortisation | 110.0 m | 105.0 m | 103.0 m | 113.0 m | 114.0 m | 127.0 m | 135.0 m | 151.0 m |
| Interest expense | 66.0 m | 64.0 m | 68.0 m | 66.0 m | 71.0 m | 69.0 m | 69.0 m | 68.0 m |
| Pre-tax income | 1.9 bn | 2.1 bn | 2.3 bn | 2.6 bn | 2.3 bn | 2.3 bn | 3.2 bn | 2.9 bn |
| Income tax | 164.0 m | 934.0 m | 185.0 m | 784.0 m | 370.0 m | 302.0 m | 419.0 m | 369.0 m |
| Net income | 1.7 bn | 1.2 bn | 2.1 bn | 1.8 bn | 1.9 bn | 2.0 bn | 2.8 bn | 2.5 bn |
| Diluted EPS | 2.08 ≈ | 1.45 | 2.63 | 2.22 | 2.37 ≈ | 2.54 | 3.51 | 3.17 |
| Operating cash flow | 2.6 bn | 925.0 m | 1.6 bn ≈ | 2.6 bn ≈ | 2.8 bn | 1.7 bn | 845.0 m ≈ | 3.0 bn ≈ |
| Capex | 407.0 m | 381.0 m | 510.0 m ≈ | 584.0 m ≈ | 785.0 m | 646.0 m | 635.0 m ≈ | 707.0 m ≈ |
| Dividends paid | 329.0 m | 326.0 m | 325.0 m ≈ | 368.0 m ≈ | 365.0 m | 365.0 m | 365.0 m ≈ | 420.0 m ≈ |
| Share repurchases | 1.4 bn | 1.3 bn | 1.7 bn ≈ | 1.1 bn ≈ | 851.0 m | 337.0 m | 400.0 m ≈ | 440.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 93 percentile of its own 43-quarter history (min 10.8, median 18.4, max 46.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 16.7 bn | 14.6 bn | 17.2 bn | 23.1 bn | 25.8 bn | 26.5 bn | 27.2 bn | 28.4 bn |
| Revenue YoY | +13.7% | −12.6% | +17.8% | +34.1% | +11.8% | +2.8% | +2.5% | +4.4% |
| Net income | 3.0 bn | 2.7 bn | 3.6 bn | 5.9 bn | 6.5 bn | 6.9 bn | 7.2 bn | 7.0 bn |
| Net income YoY | −13.7% | −10.9% | +33.7% | +62.7% | +10.8% | +5.1% | +4.7% | −2.5% |
| Diluted EPS | 2.96 | 2.86 | 3.92 | 6.40 | 7.44 | 8.11 | 8.61 | 8.66 |
| Diluted EPS YoY | −8.9% | −3.4% | +37.1% | +63.3% | +16.3% | +9.0% | +6.2% | +0.6% |
| net % | 18.2% | 18.5% | 21.0% | 25.5% | 25.3% | 25.9% | 26.4% | 24.7% |
| Free cash flow | 3.2 bn | 2.8 bn | 3.4 bn | 4.8 bn | 4.6 bn | 7.6 bn | 7.5 bn | 5.7 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 26 Oct 2025
- Cash
- 7.2 bn USD
- Financial debt
- 6.6 bn USD
- Net debt
- -686.0 m USD
- Equity
- 20.4 bn USD
- Total assets
- 36.3 bn USD
- Debt / equity
- 0.32x
- Current ratio
- 2.61x
- ROE
- 35.5%
- ROA
- 19.8%
- FCF margin
- 20.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 17.2 bn | 23.1 bn | 25.8 bn | 26.5 bn | 27.2 bn | 28.4 bn | SEC (XBRL)· 12 Dec 2025verified |
| Cost of revenue | 9.5 bn | 12.1 bn | 13.8 bn | 14.1 bn | 14.3 bn | 14.6 bn | SEC (XBRL)· 12 Dec 2025verified |
| Gross profit | 7.7 bn | 10.9 bn | 12.0 bn | 12.4 bn | 12.9 bn | 13.8 bn | SEC (XBRL)· 12 Dec 2025verified |
| Research & development | 2.2 bn | 2.5 bn | 2.8 bn | 3.1 bn | 3.2 bn | 3.6 bn | SEC (XBRL)· 12 Dec 2025verified |
| SG&A | — | — | — | 1.6 bn | 1.8 bn | 1.8 bn | SEC (XBRL)· 12 Dec 2025verified |
| Operating income | 4.4 bn | 6.9 bn | 7.8 bn | 7.7 bn | 7.9 bn | 8.3 bn | SEC (XBRL)· 12 Dec 2025verified |
| Depreciation & amortisation | 376.0 m | 394.0 m | 444.0 m | 515.0 m | 392.0 m | 435.0 m | SEC (XBRL)· 12 Dec 2025verified |
| EBITDA | 4.7 bn ≈ | 7.3 bn ≈ | 8.2 bn ≈ | 8.2 bn ≈ | 8.3 bn ≈ | 8.7 bn ≈ | SEC (XBRL)· 12 Dec 2025derived |
| Interest expense | 240.0 m | 236.0 m | 228.0 m | 238.0 m | 247.0 m | 269.0 m | SEC (XBRL)· 12 Dec 2025verified |
| Pre-tax income | 4.2 bn | 6.8 bn | 7.6 bn | 7.7 bn | 8.2 bn | 9.3 bn | SEC (XBRL)· 12 Dec 2025verified |
| Income tax | 547.0 m | 883.0 m | 1.1 bn | 860.0 m | 975.0 m | 2.3 bn | SEC (XBRL)· 12 Dec 2025verified |
| Net income | 3.6 bn | 5.9 bn | 6.5 bn | 6.9 bn | 7.2 bn | 7.0 bn | SEC (XBRL)· 12 Dec 2025verified |
| Diluted EPS | 3.92 | 6.40 | 7.44 | 8.11 | 8.61 | 8.66 | SEC (XBRL)· 12 Dec 2025verified |
| Weighted average diluted shares | 923.0 m | 919.0 m | 877.0 m | 845.0 m | 834.0 m | 808.0 m | SEC (XBRL)· 12 Dec 2025verified |
| Dividend per share | 0.87 | 0.94 | 1.02 | 1.22 | 1.52 | 1.78 | SEC (XBRL)· 12 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 5.4 bn | 5.0 bn | 2.0 bn | 6.1 bn | 8.0 bn | 7.2 bn | SEC (XBRL)· 12 Dec 2025verified |
| Receivables | 3.0 bn | 5.0 bn | 6.1 bn | 5.2 bn | 5.2 bn | 5.2 bn | SEC (XBRL)· 12 Dec 2025verified |
| Inventories | 3.9 bn | 4.3 bn | 5.9 bn | 5.7 bn | 5.4 bn | 5.9 bn | SEC (XBRL)· 12 Dec 2025verified |
| Current assets | 13.4 bn | 16.1 bn | 15.9 bn | 19.1 bn | 21.2 bn | 20.9 bn | SEC (XBRL)· 12 Dec 2025verified |
| Property, plant & equipment, net | 1.6 bn | 1.9 bn | 2.3 bn | 2.7 bn | 3.3 bn | 4.6 bn | SEC (XBRL)· 12 Dec 2025verified |
| Goodwill | 3.5 bn | 3.5 bn | 3.7 bn | 3.7 bn | 3.7 bn | 3.7 bn | SEC (XBRL)· 12 Dec 2025verified |
| Intangibles (excl. goodwill) | 153.0 m | 104.0 m | 339.0 m | 294.0 m | 249.0 m | 226.0 m | SEC (XBRL)· 12 Dec 2025verified |
| Total assets | 22.4 bn | 25.8 bn | 26.7 bn | 30.7 bn | 34.4 bn | 36.3 bn | SEC (XBRL)· 12 Dec 2025verified |
| Accounts payable | 1.1 bn | 1.5 bn | 1.8 bn | 1.5 bn | 1.6 bn | 2.0 bn | SEC (XBRL)· 12 Dec 2025verified |
| Short-term debt | 0 | — | 0 | 100.0 m | 799.0 m | 100.0 m | SEC (XBRL)· 12 Dec 2025verified |
| Long-term debt | 5.4 bn | 5.5 bn | 5.5 bn | 5.5 bn | 5.5 bn | 6.5 bn | SEC (XBRL)· 12 Dec 2025verified |
| Current liabilities | 4.5 bn | 6.3 bn | 7.4 bn | 7.4 bn | 8.5 bn | 8.0 bn | SEC (XBRL)· 12 Dec 2025verified |
| Total liabilities | 11.8 bn | 13.6 bn | 14.5 bn | 14.4 bn | 15.4 bn | 15.9 bn | SEC (XBRL)· 12 Dec 2025verified |
| Equity | 10.6 bn † | 12.2 bn † | 12.2 bn † | 16.3 bn † | 19.0 bn † | 20.4 bn † | SEC (XBRL)· 12 Dec 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 3.8 bn | 5.4 bn | 5.4 bn | 8.7 bn | 8.7 bn | 8.0 bn | SEC (XBRL)· 12 Dec 2025verified |
| Capex | 422.0 m | 668.0 m | 787.0 m | 1.1 bn | 1.2 bn | 2.3 bn | SEC (XBRL)· 12 Dec 2025verified |
| Free cash flow | 3.4 bn ≈ | 4.8 bn ≈ | 4.6 bn ≈ | 7.6 bn ≈ | 7.5 bn ≈ | 5.7 bn ≈ | SEC (XBRL)· 12 Dec 2025derived |
| Investing cash flow | -130.0 m | -1.2 bn | -1.4 bn | -1.5 bn | -2.3 bn | -2.8 bn | SEC (XBRL)· 12 Dec 2025verified |
| Financing cash flow | -1.3 bn | -4.6 bn | -7.0 bn | -3.0 bn | -4.5 bn | -6.0 bn | SEC (XBRL)· 12 Dec 2025verified |
| Dividends paid | 787.0 m | 838.0 m | 873.0 m | 975.0 m | 1.2 bn | 1.4 bn | SEC (XBRL)· 12 Dec 2025verified |
| Share repurchases | 649.0 m | 3.8 bn | 6.1 bn | 2.2 bn | 3.8 bn | 4.9 bn | SEC (XBRL)· 12 Dec 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 46 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
03 Nov 2026Source: olivLaw, closing series
Market cap: 303.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation48
- Returns53
- Quality48
- Balance sheet98
- Growth15
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 95.88 – 624.91 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)95.88 – 145.83 (Mid 115.32)WACC 9.2% · starting FCFF 5.9 bn USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales272.65 – 624.91 (Mid 552.41)9 companies used · median multiple 14.2x · quartiles 7.0x – 16.1xADI, AMD, AVGO, INTC, MCHP, MRVL, MU, NXPI, TXN
- Peers: EV/EBITDA125.30 – 269.52 (Mid 145.61)3 companies used · median multiple 11.9x · quartiles 10.2x – 22.1xMCHP, MU, NXPI
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 46/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 49.4% | 23 (on a fixed band) | 11% |
| EBIT margin · Quality | 29.6% | 55 (vs peers) | 9% |
| FCF margin · Quality | 18.2% | 73 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 3.2% | 13 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 4.4% | 18 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -0.1x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 2.4x | 95 (on a fixed band) | 6% |
| EV/Sales · Valuation | 9.8x | 56 (vs peers) | 17% |
| FCF yield · Valuation | 1.9% | 37 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 1.2% | 53 (on a fixed band) | 4% |
Score groups
- Balance sheet98/100 · 2/2 factors with a value
- Growth15/100 · 2/2 factors with a value
- Quality48/100 · 3/3 factors with a value
- Returns53/100 · 1/1 factors with a value
- Valuation48/100 · 2/2 factors with a value
Memo
APPLIED MATERIALS INC /DE (AMAT). Latest full fiscal year: 2025; data up to 2026-07-26.
Figures computed from the financial statements: revenue 28.4 bn USD in 2025; YoY growth 4.4%; net margin 30.1%; ROE 41.1%; net debt/EBITDA -0.1x.
The estimated value range is 125.30–269.52 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 145.61 USD, the price of 381.92 USD leaves a potential of -61.9% (value / price − 1) and a margin of safety of -162.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 46/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF margin: 18.2%
- Net debt / EBITDA: -0.1x
- Current ratio: 2.4x
What contradicts it
- Gross margin: 49.4%
- Revenue CAGR 3Y: 3.2%
- Revenue growth (YoY): 4.4%
- The price is above the estimated value range
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 11 companies
Only companies with a capitalisation between 37.3 bn and 2,384.5 bn (within 8× of the company's); 85 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AVGOBroadcom Inc. | 1,585.5 bn | 42.4 | 44.2% | 42.9% | +23.9% | −18% / +259% |
| MUMicron Technology, Inc. | 967.5 bn | 11.5 | 88.3% | 63.8% | +256.3% | +262% / +1,023% |
| AMDAdvanced Micro Devices Inc | 790.0 bn | 124.5 | 10.1% | 15.6% | +34.3% | +122% / +299% |
| INTCIntel Corporation | 321.8 bn | — | -10.9% | -20.1% | −0.5% | +49% / +35% |
| AMATApplied Materials Inc | 303.1 bn | 32.9 | 41.1% | 30.1% | +4.4% | +61% / +173% |
| TXNTexas Instruments Inc | 285.5 bn | 40.5 | 39.7% | 34.3% | +13.0% | +86% / +105% |
| ADIAnalog Devices Inc | 203.4 bn | 49.8 | 12.2% | 29.8% | +16.9% | +58% / +129% |
| MRVLMarvell Technology, Inc | 150.8 bn | 56.8 | 16.5% | 27.9% | +42.1% | +92% / +209% |
| NXPINXP Semiconductors N.V. | 66.2 bn | 20.7 | 29.2% | 23.4% | −2.7% | +35% / +29% |
| MPWRMonolithic Power Systems, Inc. | 64.8 bn | 73.2 | 25.1% | 23.9% | +26.4% | +43% / +142% |
| MCHPMicrochip Technology Incorporated | 42.3 bn | 107.7 | 7.2% | 9.3% | +7.1% | +45% / −7% |
| ALABAstera Labs, Inc. | 40.5 bn | 115.8 | 25.8% | 30.7% | +115.1% | +48% / unavailable |
1- and 3-year price returns: for AMAT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 224.47 Total return -41% · Per year -41% | 397.09 Total return 5% · Per year 5% | 598.47 Total return 57% · Per year 57% |
| 3 years | 212.34 Total return -43% · Per year -17% | 423.19 Total return 12% · Per year 4% | 701.07 Total return 86% · Per year 23% |
| 5 years | 200.87 Total return -45% · Per year -11% | 451.00 Total return 21% · Per year 4% | 821.27 Total return 119% · Per year 17% |
- Exit P/E± 105.80
- Net margin± 74.06
- Annual revenue growth± 61.54
- Annual dilution± 6.22
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Applied Materials is the leader in materials engineering solutions used to produce virtually every semiconductor in the world. Net revenue was 28.368 bn USD in fiscal 2025 1, and third-quarter fiscal 2026 revenue reached 9.115 bn USD, up 25% 3. Dependence on customers' capital spending for chip capacity remains the main risk factor.
SWOT
Strengths
- The company has a broad product portfolio for chipmaking, a large installed base and a considerable patent position 1.
- Gross and operating margins have expanded in recent quarters, with management reporting consecutive years of gross margin gains 3.
- Partnerships within the EPIC Center accelerate the move from research to production 3.
Weaknesses
Opportunities
Risks
- Cyclical demandhigh
Customer fab investment can fluctuate sharply, which may affect revenue and margins in a given quarter or year 1.
- Export controlshigh
Export licenses may be denied or delayed, which could limit sales to customers in China 1.
- Government investigationsmedium
The company has received subpoenas from US authorities about shipments to Chinese customers, which could lead to legal costs and penalties 1.
- Customer concentrationmedium
A small number of large customers account for a significant share of revenue, so losing one could affect results 1.
- Tariffs and supply chainmedium
Tariffs and restrictions on critical materials, including rare earth minerals, could raise production costs 1.
Investment thesis
What would need to be true (bull case)
- If demand linked to artificial intelligence and advanced memory holds, revenue and margins could keep growing, in line with management's guidance 3.
- The large installed base and subscription model could stabilize cash flows during periods of lower equipment investment 1.
- A broad product portfolio and sustained R&D investment could help maintain the company's competitive position over the long term 1.
What would break the thesis
- If customer investment cools, equipment revenue could fall quickly given the cyclical nature of the industry 1.
- Export restrictions and government controls could limit access to an important market and advantage local rivals 1.
- Dependence on a few large customers and a limited number of suppliers could turn a delay or lost order into a significant impact 1.
What to watch
- Revenue and EPS guidance for the fourth quarter of fiscal 2026Q4 2026
- New export rules and outcomes of government investigations2027
- Expected capacity investment and demand outlook for 20272027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Incorporated in 1967 as a Delaware corporation, the company designs, develops, manufactures and services wafer fabrication tools 1. It operates two reportable segments: Semiconductor Systems, the largest contributor to revenue, and Applied Global Services (AGS), which provides services, spares and factory automation software 1. Its display business is reported in Corporate and Other 1.
Starting in the first quarter of fiscal 2026, the 200mm equipment business moved from AGS to Semiconductor Systems, and corporate support costs are fully allocated to segments 3. The company aims to shift service and spares toward a subscription model for a more predictable revenue stream 1.
Trends
- Demand linked to artificial intelligencetailwind
Data center and HBM memory demand could support investment in advanced equipment, and management expects growth faster than the market this year 3.
- Export restrictions on Chinaheadwind
US export rules may limit sales to Chinese customers and could favor international or Chinese rivals 1.
- Tariffs and trade disputesmixed
Tariffs could raise import costs and delay customer orders, although they may also reshape supply chains 1.
- Growth in services and subscriptionstailwind
Expanding the subscription model in AGS could stabilize revenue as the installed base grows 1.
Competitive position
Competition is intense across all segments, ranging from small single-region companies to global diversified groups 1. Chinese domestic equipment makers benefit from government support, and US restrictions may advantage international competitors 1.
In services, competition comes from third-party providers and from customers who maintain equipment themselves 1. The company states that many of its products hold strong competitive positions, supported by heavy R&D spending 1.
- Lam ResearchLRCX
Global wafer fabrication equipment competitor, part of the broader industry competitive landscape.
- KLA CorporationKLAC
Process control and inspection equipment supplier in categories where the company competes.
- Third-party service providers
Firms offering services and spare parts for semiconductor equipment, competing with AGS.
- Chinese domestic equipment makers
Government-backed firms that could gain share in some regions if export restrictions persist.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Applied Materials to raise BESI stake to about 20%CNA (Channel NewsAsia) · 26 Oct 2026 · EN
- Parental benefit encouraged people to have children in Estonia, but fathers mainly applied for financial reasonsPhys.org · 22 Oct 2026 · EN
- 4 valuable credit cards TPG staffers have recently applied forThe Points Guy · 19 Oct 2026 · EN
- A Princeton PhD Applied to 2,300 Jobs. He Still Can't Get OneHacker News · 18 Oct 2026 · EN
- Nearly 400 foreign companies have applied for access to data on Russian weapons, Ukrainian Defence Ministry says – photoUkrainska Pravda (UA, EN) · 15 Oct 2026 · EN
- Applied Materials just broke out above a key level. This bullish options trade takes advantageCNBC — Top News · 30 Sept 2026 · EN
- Ce stă la baza celei mai recente creșteri de 3,1% a acțiunilor Applied Materials? - Traders UnionSurge — Google News · 29 Sept 2026 · RO
- Reciprocity, Selectively Applied: The Contradiction at the Center of the Trump and Xi SummitModern Diplomacy · 24 Sept 2026 · EN
- Exclusive-Hellman & Friedman explores sale of Applied Systems at up to $10 billion, sources sayCNA (Channel NewsAsia) · 23 Sept 2026 · EN
- Can Applied Aerospace (AADX) Turn Record Backlog Into Real Profit?Yahoo Finance — News · 23 Sept 2026 · EN
- Wells Fargo Starts Applied Digital (APLD) at Overweight and Calls it a Top IdeaYahoo Finance — News · 22 Sept 2026 · EN
- APLD’s 250MW Question: The Deal That Could Unlock Applied Digital Stock’s Next Leg UpYahoo Finance — News · 22 Sept 2026 · EN
- Applied Materials Commits $5 Billion to India as Chip Manufacturing ExpandsYahoo Finance — News · 22 Sept 2026 · EN
- Applied Materials Stock Jumped Nearly 7% in a Chip-Equipment Rally. Its $5 Billion India Plan Is the Longer StoryYahoo Finance — News · 21 Sept 2026 · EN
- Corning Climbs 6% as AI Optical Interconnect Demo Highlights Its Fiber; Lumentum, Coherent and Applied Optoelectronics Rise 4%Yahoo Finance — News · 21 Sept 2026 · EN
- Applied Optoelectronics (AAOI): Hyperscaler Capex Surge Fuels Unprecedented Demand for Optical InfrastructureYahoo Finance — News · 21 Sept 2026 · EN
- Applied Materials vs. Broadcom: Comparing Sales Growth Trajectories for These Artificial Intelligence CompaniesYahoo Finance — News · 19 Sept 2026 · EN
- Applied Materials vs. Intel: Examining Revenue Growth Trajectories of These Artificial Intelligence CompaniesYahoo Finance — News · 19 Sept 2026 · EN
- Merchant Supplier, Massive Upside: Guggenheim Picks Applied Aerospace & Defense (AADX) as its Top Defense BetYahoo Finance — News · 18 Sept 2026 · EN
- Everyone’s Watching Applied Optoelectronic’s Revenue. Few Are Watching This ChartYahoo Finance — News · 17 Sept 2026 · EN
SEC filings
- Current report26 Oct 2026Other events · Financial statements and exhibits
- Current report27 Aug 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report20 Aug 2026
- Current report13 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report21 May 2026
- Current report14 May 2026Results of operations · Financial statements and exhibits
- Current report13 Mar 2026Shareholder vote
- Quarterly report19 Feb 2026
- Current report12 Feb 2026Results of operations · Financial statements and exhibits
- Current report12 Feb 2026Regulation FD disclosure · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-10-26 · SEC / Applied Materials, Inc. · 12 Dec 2025
- [2] Form 10-Q, quarter ended 2026-07-26 · SEC / Applied Materials, Inc. · 20 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Applied Materials, Inc. · 13 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.