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%)552.64+11.19%
Buy price
475.00
Target price480.00
Sell price525.00
P/E TTM46.38
P/E38.72
Confidence85%
Risk score80/100
AI Summary
Extreme valuation premium (32-55% above fair value), severely overbought technicals (RSI 78.52, 99.58% holders in profit), deteriorating profitability (6.33% YoY net profit decline despite revenue growth), and euphoric sentiment indicate high risk of sharp correction. The AI structural narrative is fully priced in at current levels.

Alpha Score

0-10
  • Trend（Score 4/10）

    AMAT exhibits a strong bullish trend with powerful momentum but is severely overbought, warranting a cautious hold strategy with potential buying opportunities only on pullbacks.

  • Valuation（Score 2/10）

    Valuation metrics suggest the stock is trading at a significant premium. The forward P/E is 38.72 and trailing P/E is 46.38, both elevated, indicating high market growth expectations. The P/B ratio is 16.50 and P/S ratio is 20.34, also at premium levels. Based on trailing earnings and a more normalized P/E range of 30-35, the fundamental target price range is $357.60 to $417.20, well below the current price of $552.64, suggesting the stock is overvalued.

  • Financial strength（Score 8/10）
    The company demonstrates a strong and healthy financial position. It has ample short-term liquidity with a current ratio of 2.50 and quick ratio of 1.76. It maintains a moderate level of leverage with a debt-to-asset ratio of 42.99%. It shows efficient use of capital with a high Return on Equity (ROE-TTM) of 26.50% and Return on Assets (ROA-TTM) of 14.87%.
  • Profitability（Score 7/10）
    Applied Materials exhibits robust and stable profitability metrics. It maintains high and consistent gross margins around 48-49%. The net margin for the latest reported quarter was a strong 23.65%, demonstrating excellent operational efficiency. While year-over-year net profit growth has been volatile recently, revenue growth has remained positive, with the latest quarter showing a 7.14% increase.
  • Sentiment（Score 9/10）
    Applied Materials (AMAT) shows strong bullish momentum driven by AI infrastructure demand, record financial performance, and multiple analyst upgrades, with price targets indicating significant upside potential.
Latest price
$552.64+11.19%
Market cap438.77B
P/E TTM46.38
P/E38.72
Volume12.4M
Turnover6.67B