AMAT— Applied Materials, Inc.
NasdaqGSTechnology · Semiconductor Equipment & Materials
Applied Materials, Inc. (AMAT) stock trades at $568.04, up 8.05% on the day. With a market capitalization of $451.00 billion, AMAT is a mega-cap technology stock. It trades at a price-to-earnings (P/E) ratio of 53.5, a forward P/E of 33.9 and earnings per share (EPS) of $10.62. Over the most recent period the company reported 11% year-over-year revenue growth and a net profit margin of 29.3%. Below you'll find AMAT's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.
Price & Performance
Performance
Analysis & Verdict
Applied Materials, Inc. (AMAT) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
Applied Materials, Inc. (AMAT) operates in the Semiconductor Equipment & Materials space within the Technology sector. With a market cap of $451.0B, it qualifies as a large-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.
- Forward P/E (33.9×) is lower than trailing P/E (53.5×) — analysts expect earnings to improve
- Revenue growth of 11% YoY shows solid business momentum
- Earnings grew 34% YoY — bottom-line is expanding fast
- Exceptional profit margin of 29.3% — the business retains a large share of each dollar earned
- ROE of 39.7% shows management efficiently converts equity into profit
- Current ratio of 2.5× — ample short-term liquidity
- High P/E of 53.5× implies high expectations already priced in — leaves little room for disappointment
- High debt-to-equity of 30.40× increases financial risk, especially with elevated interest rates
- High beta of 1.57 — this stock is significantly more volatile than the broader market
Verdict
Strong Buy
Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Fair Value Estimates
Current price: $568.04
Graham Number
√(22.5 × EPS × Book Value)
$84.83
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
$21.60
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
9/10
90% score
Pays dividends
15Y hist.15+ years of dividend history
Dividend consistency (5Y+)
15 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
39.7%Return on equity — measures how efficiently capital is used
Positive profit margin
29.3%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+11.4%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+33.5%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
30.40×Low financial leverage reduces risk of distress
Current ratio above 1
2.51×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$5.4B/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
0.40%Stock must distribute income to shareholders
Financials
Revenue & Results
Key Statistics
Earnings
Next Earnings
Aug 13, 2026
23
days
EPS (TTM)
$10.62
P/E (TTM)
53.5
Fwd P/E
33.9
SEC Filings & Reported Financials
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Insider Transactions
SEC Form 4 · officers, directors & 10% owners
Dividends & Income
Dividends
Current DY
0.40%
5Y Avg Annual
$1.3060
Last Payment
$0.5300
Ex-Date
05/21/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest05/21/2026 | 06/11/2026 | $0.5300 | 0.37% |
02/19/2026 | 03/12/2026 | $0.4600 | 0.32% |
11/20/2025 | 12/11/2025 | $0.4600 | 0.32% |
08/21/2025 | 09/11/2025 | $0.4600 | 0.32% |
05/22/2025 | 06/12/2025 | $0.4600 | 0.32% |
02/20/2025 | 03/13/2025 | $0.4000 | 0.28% |
11/21/2024 | 12/12/2024 | $0.4000 | 0.28% |
08/22/2024 | 09/12/2024 | $0.4000 | 0.28% |
Magic Number
Shares needed to self-fund your next purchase
$568.04
Price
$0.5300
Last div. (quarterly)
1,072
shares
Own 1,072 AMAT shares ($608,938.88) and each quarterly dividend pays for 1 new share — the snowball runs on its own.
Investment target
$608,938.88
New shares / year
+4 shares
Tools & Simulators
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
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About Applied Materials, Inc.
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.
Sector
Technology
Industry
Semiconductor Equipment & Materials
Location
Santa Clara, United States
Employees
36,400
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AMAT — Frequently Asked Questions
Is Applied Materials, Inc. (AMAT) a good stock to buy in 2026?
Applied Materials, Inc. (AMAT) shows strengths such as revenue growth of 11%, a strong 29% net margin and a 40% return on equity, while risks include a rich P/E of 53× and high leverage (debt/equity of 30.4). Whether AMAT is a good buy in 2026 depends on your time horizon and risk tolerance — review the full bull case, bear case and fair-value estimates above. This is informational analysis, not financial advice.
What is AMAT's stock price today?
Applied Materials, Inc. (AMAT) trades at $568.04, up 8.05% on the session. Prices on this page update throughout the trading day.
Does AMAT pay a dividend?
Yes. Applied Materials, Inc. pays an annual dividend of $2.12 per share, a dividend yield of 0.40%. The most recent ex-dividend date was August 20, 2026. Its payout ratio is about 17% of earnings.
Is AMAT overvalued?
With a P/E ratio of 53.5×, AMAT trades at a premium valuation for the technology sector. Its PEG ratio is 1.34. See the Fair Value Estimates section above for Graham Number and dividend-based price targets.
What is AMAT's market cap?
Applied Materials, Inc. (AMAT) has a market capitalization of $451.00 billion, classifying it as a mega-cap stock in the Technology sector.
Disclaimer: This page — including any buy/hold/avoid view, fair value or price estimate — is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.