Applied Materials, Inc.(AMAT) - Stock detail

Applied Materials, Inc.

US
AMAT
Applied Materials, Inc.(Listing date: 01/06/1978)

Applied Materials, Inc., founded in 1967, is a global company incorporated in Delaware with extensive capabilities in materials engineering. The company provides manufacturing equipment, services and software for the semiconductor, display and related industries. Leveraging its diverse technological capabilities, the company's products and services can enhance device performance, yield and cost. Its customers include manufacturers of semiconductor chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices.

AI Rating

Rating methodology
Latest close (chg%)501.70+0.19%
Buy price
430.00
Target price430.00
Sell price510.75
P/E TTM46.73
P/E38.72
Confidence85%
Risk score85/100
AI Summary
The stock is in a speculative bubble with extreme overbought conditions (RSI 86.95, price above upper Bollinger Band) and 96.61% of holders in profit, creating massive latent selling pressure. Fundamentals show three consecutive quarters of declining net profit (-41%, -11%, -6% YoY) while valuation is stretched (Forward P/E 38.72). The risk-reward is asymmetric to the downside, making profit-taking and waiting for a correction to fundamental support the prudent strategy.

Alpha Score

0-10
  • Trend（Score 3/10）

    AMAT is in an exceptionally strong but technically overextended bullish trend, with powerful momentum indicators conflicting with screaming overbought oscillators, warranting a Hold stance with caution.

  • Valuation（Score 2/10）

    Valuation metrics indicate the stock is trading at a significant premium, with elevated P/E, P/B, and P/S ratios. The current price of $501.70 appears overvalued relative to recent financial performance, and a fundamental-based target price is in the range of $420 - $440.

  • Financial strength（Score 8/10）
    The company demonstrates a strong and healthy financial position with robust liquidity, moderate leverage, and overall financial stability, suggesting it is capable of weathering economic cycles and investing in future growth.
  • Profitability（Score 7/10）
    Applied Materials exhibits high profitability with excellent gross and net margins, and outstanding returns on equity and assets. However, a critical observation is the year-over-year decline in net profit for the last three reported quarters, suggesting earnings growth has stalled recently.
  • Sentiment（Score 8/10）
    Applied Materials (AMAT) is positioned as a critical beneficiary of the multi-year AI investment cycle with strong demand and positive sector momentum, suggesting a bullish outlook.
Latest price
$501.70+0.19%
Market cap398.33B
P/E TTM46.73
P/E38.72
Volume6.72M
Turnover3.32B