Applied Materials, Inc.

NasdaqGS:AMAT Stock Report

Market Cap: US$326.0b

Applied Materials Future Growth

Future criteria checks 3/6

Applied Materials is forecast to grow earnings and revenue by 13.9% and 12.5% per annum respectively. EPS is expected to grow by 14.6% per annum. Return on equity is forecast to be 37.3% in 3 years.

Key information

13.9%

Earnings growth rate

14.55%

EPS growth rate

Semiconductor earnings growth26.3%
Revenue growth rate12.5%
Future return on equity37.30%
Analyst coverage

Good

Last updated28 Apr 2026

Recent future growth updates

Recent updates

Narrative Update • Apr 27

AMAT: Future Packaging Demand And WFE Cycle Strength Will Shape Returns

Applied Materials' updated analyst price target has edged higher, with fair value moving from about $398.73 to $422.97 as analysts factor in slightly stronger revenue growth, a modestly higher profit margin outlook, and a richer future P/E assumption, partly supported by a broad wave of recent price target hikes and upgrades across the Street. Analyst Commentary Recent Street research around Applied Materials has been active, with a long list of price target increases and several rating upgrades clustered around recent results and guidance.
Seeking Alpha • Apr 18

The Margin Machine: Why Applied Materials Is Outgrowing Its Peers

Summary Applied Materials is rated Buy, leveraging AI-driven wafer fab equipment demand and structural industry tailwinds for robust earnings growth. AMAT's forward P/E of 32x is below peer averages, justified by accelerating EPS growth and exposure to high-margin DRAM/HBM and GAA logic nodes. Record Q1 FY2026 gross margin (49%) and strong DRAM segment performance highlight operational leverage and product leadership in advanced semiconductor manufacturing. Key risks include U.S. export controls impacting China revenue (~$710M in FY2026E) and ongoing cyclical volatility, but AGS provides counter-cyclical stability. Read the full article on Seeking Alpha
Narrative Update • Apr 13

AMAT: AI Memory And Packaging Upswing Will Support Future Upside

The analyst price target for Applied Materials has been updated from $470 to $500, with analysts citing stronger long term assumptions for revenue growth, profit margins and P/E support, driven by broad based sector target increases across semiconductor equipment peers. Analyst Commentary Recent Street research around Applied Materials points to an increasingly constructive view on the stock, with many bullish analysts revising their models to reflect stronger assumptions for the wafer fab equipment cycle, particularly in DRAM and advanced packaging.
Narrative Update • Mar 30

AMAT: WFE Upswing And AI Memory Deals Will Support Future Upside

Applied Materials' analyst price target has been revised upward by a broad group of firms into a higher $300s to low $400s range, with analysts pointing to stronger multi year wafer fab equipment growth forecasts, increasing AI and DRAM related spending expectations, and a more constructive view on secular WFE demand as key supports for the shift. Analyst Commentary Recent Street research on Applied Materials shows a cluster of higher price targets and rating upgrades, with bullish analysts pointing to wafer fab equipment spending expectations, AI and memory related demand, and a more supportive multi year industry view as key drivers.
New Narrative • Mar 29

AMAT: The "Master Architect" of the $1 Trillion Silicon Era

Applied Materials, Inc. (AMAT) is currently positioned as the indispensable "pick-and-shovel" provider for the global artificial intelligence explosion.
Narrative Update • Mar 16

AMAT: Wafer Equipment Upswing And AI Memory Partnerships Will Support Future Upside

Analysts have raised their average price targets on Applied Materials into a higher $400 plus range, citing stronger wafer fab equipment spending forecasts for 2026 and 2027, along with broad-based target hikes across major firms as key supports for the update. Analyst Commentary Recent Street research on Applied Materials highlights a clear tilt toward more constructive views, with a mix of higher price targets, fresh coverage and several upgrades into more positive rating buckets.
Narrative Update • Mar 02

AMAT: Wafer Equipment Upswing And Services Mix Will Support Future Upside

Our fair value estimate for Applied Materials has been raised from $420.71 to $470.00 as analysts lift long term wafer fab equipment growth expectations and highlight the stock as a top pick in semiconductor production equipment. Analyst Commentary Recent Street research around Applied Materials has been heavily skewed toward positive revisions, with a broad group of bullish analysts lifting price targets and, in several cases, upgrading their ratings.
Narrative Update • Feb 16

AMAT: Future WFE Cycle Strength Will Drive Returns Higher

Analysts have lifted their implied fair value for Applied Materials from about $248 to roughly $399, citing higher assumed revenue growth, stronger profit margins, and a richer future P/E multiple. They link this to a broad wave of price target hikes and upgrades across recent Street research.
Narrative Update • Feb 02

AMAT: Future Multiple Compression Will Likely Follow Aggressive Wafer Equipment Spending Cycle

Our analyst fair value estimate for Applied Materials has moved up by $10 to $190 per share, reflecting updated assumptions on revenue growth, profitability, and long-term P/E, in line with the series of recent price target hikes and upgrades from Street analysts. Analyst Commentary Recent Street research on Applied Materials has been dominated by higher price targets, fresh initiations with constructive views, and several upgrades.
Narrative Update • Jan 19

AMAT: Rising Wafer Equipment Demand And Services Mix Will Drive Upside

Analysts have lifted their fair value estimate for Applied Materials from about $247 to around $421. This reflects higher assumed revenue growth, stronger profit margins, and a richer future P/E multiple in light of a broad wave of recent price target hikes and upgrades across the Street.
Narrative Update • Jan 04

AMAT: Future Multiple Compression Will Likely Pressure Elevated Share Price

Our fair value estimate for Applied Materials has been raised to $180 from $160.41 as analysts lift price targets into the mid to high $200s, citing above-consensus execution, resilient foundry and memory demand, de-risked China exposure, and strengthening recurring services growth. Analyst Commentary Street research has turned more constructive on Applied Materials, with multiple firms lifting price targets into the $250 to $270 range following solid quarterly execution, above-consensus guidance, and stronger visibility into 2026 wafer fab equipment demand.
Analysis Article • Jan 03

Investor Optimism Abounds Applied Materials, Inc. (NASDAQ:AMAT) But Growth Is Lacking

With a price-to-earnings (or "P/E") ratio of 30.5x Applied Materials, Inc. ( NASDAQ:AMAT ) may be sending very bearish...
Narrative Update • Dec 14

AMAT: Future WFE Cycle And China Policy Risks Will Shape Returns

We raise our fair value estimate for Applied Materials to $248.44 from $241.69, reflecting analysts' increased price targets in the mid $200s on stronger than expected execution, slightly higher long term revenue growth and margins, and confidence that China related risks are moderating while wafer fab equipment and services demand in foundry and memory remains robust. Analyst Commentary Street research has turned decisively more constructive on Applied Materials, with multiple firms lifting price targets into the mid to high $200s following better than expected results and guidance.
Narrative Update • Nov 28

AMAT: Future Demand Strength And Industry Competition Will Shape Stock Performance

Applied Materials’ analyst price target has increased from $222.94 to $241.69. Analysts cite stronger-than-expected recent results, improved revenue growth forecasts, and solid ongoing demand in core market segments as the main reasons for the upward revision.
Analysis Article • Nov 16

US$238 - That's What Analysts Think Applied Materials, Inc. (NASDAQ:AMAT) Is Worth After These Results

As you might know, Applied Materials, Inc. ( NASDAQ:AMAT ) recently reported its annual numbers. The result was...
Narrative Update • Nov 14

AMAT: Future Equipment Demand And Industry Shifts Will Drive Mixed Performance

The analyst price target for Applied Materials has increased from approximately $218 to $223 per share. Analysts cite above-consensus execution, persistent industry strength, and improved growth outlook as key reasons for the upward revision.
Narrative Update • Oct 31

AMAT: Demand Momentum And China Uncertainty Will Shape Sector Outlook This Year

Applied Materials' analyst price target has increased modestly from $215 to $218, as analysts point to anticipated upside from wafer fab equipment demand and improving order visibility in the semiconductor capital equipment sector. Analyst Commentary Analysts have provided a broad range of perspectives on Applied Materials in recent research, reflecting both optimism around growth drivers and caution about near-term risks within the semiconductor capital equipment sector.
Narrative Update • Oct 17

AI And Advanced Packaging Will Reshape Semiconductor Landscape

Applied Materials' fair value estimate has increased to $215 from $199, as analysts raise price targets. This is due to improving wafer fab equipment demand and greater order visibility in the semiconductor capital equipment industry.
Narrative Update • Oct 03

AI And Advanced Packaging Will Reshape Semiconductor Landscape

Applied Materials' analyst price target has increased by approximately $4 to $199, as analysts cite stabilizing risk and reward dynamics and expectations for improving revenue growth, despite ongoing concerns about demand headwinds and China exposure. Analyst Commentary Recent research reflects a divided outlook on Applied Materials, with both supportive and cautious perspectives emerging from the Street.
Analysis Article • Sep 28

Subdued Growth No Barrier To Applied Materials, Inc. (NASDAQ:AMAT) With Shares Advancing 27%

Applied Materials, Inc. ( NASDAQ:AMAT ) shares have had a really impressive month, gaining 27% after a shaky period...
Narrative Update • Sep 04

AI And Advanced Packaging Will Reshape Semiconductor Landscape

Applied Materials’ consensus price target remains unchanged at $194.58, as analysts weigh near-term earnings headwinds from China-related volatility and export restrictions against long-term strength in AI-driven demand and wafer fab investments. Analyst Commentary Consensus among analysts is that Applied Materials’ near-term earnings outlook is weaker than expected due to volatility and digestion in China and reduced leading-edge foundry/logic spending, with guidance for the October quarter notably below consensus.
Analysis Article • Jul 21

Calculating The Fair Value Of Applied Materials, Inc. (NASDAQ:AMAT)

Key Insights Using the 2 Stage Free Cash Flow to Equity, Applied Materials fair value estimate is US$169 Applied...
Analysis Article • Jul 05

Applied Materials (NASDAQ:AMAT) Could Easily Take On More Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Analysis Article • Jun 23

Investors Shouldn't Overlook Applied Materials' (NASDAQ:AMAT) Impressive Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...
Analysis Article • May 17

Applied Materials, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Applied Materials, Inc. ( NASDAQ:AMAT ) shareholders, because the company has just released...
Analysis Article • May 16

Applied Materials (NASDAQ:AMAT) Will Pay A Larger Dividend Than Last Year At $0.46

Applied Materials, Inc.'s ( NASDAQ:AMAT ) dividend will be increasing from last year's payment of the same period to...
Seeking Alpha • Apr 19

Applied Materials Vs. ASML: The Ideal Pick During This Cyclical Downturn

Summary This article pits two of the most important semiconductor FAB names against one another to determine which is the better value. Both AMAT and ASML are down -40+% from their all-time highs. Both have outstanding balance sheets, with the entire semi-FAB space as their TAM. It boils down to growth versus value in this comparison. Read the full article on Seeking Alpha
New Narrative • Mar 20

Applied Materials to Ride the AI Boom with a 7% Revenue Growth Outlook

Semiconductor Equipment Demand – As AI, cloud computing, and automotive chips grow, chipmakers (TSMC, Intel, Samsung) are increasing fab capacity, boosting demand for AMAT’s semiconductor equipment.
Seeking Alpha • Mar 18

Applied Materials: Massive Share Buyback Is Positive

Summary I reiterate a 'Buy' rating for Applied Materials with a one-year target price of $196 per share, driven by its strong position in AI and energy-efficient computing markets. AMAT reported 6.8% revenue growth and 9.2% adjusted net income growth, with notable strength in its Semiconductor Systems segment. A new $10 billion share repurchase authorization, on top of $7.6 billion remaining, demonstrates management's confidence and is a positive catalyst for the stock. Despite China risks, Applied Materials is poised for 7% organic revenue growth and 20bps margin expansion, supported by its strategic investments and market positioning. Read the full article on Seeking Alpha
Seeking Alpha • Feb 25

Applied Materials: Stay On The Sidelines For Now (Technical Analysis)

Summary The chart and moving averages were quite bearish, but the indicators had mixed signals, and so the technicals overall were slightly net bearish. Most recent earnings were mixed, with revenue growth at respectable levels, but cash from operations growth showing concerning signs. The valuation currently looks fair after analyzing the P/S and P/CFO ratios relative to the fundamentals and to peers. I believe Applied Materials is currently a hold for most investors as the technicals are bearish, and the fundamentals are neutral, but the company continues to benefit from AI tailwinds. Read the full article on Seeking Alpha

Earnings and Revenue Growth Forecasts

NasdaqGS:AMAT - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
10/31/202841,54211,9759,89612,02913
10/31/202737,77010,9468,54410,46031
10/31/202631,4658,8546,2568,32731
1/25/202628,2147,8396,1948,719N/A
10/26/202528,3686,9985,6987,958N/A
7/27/202528,6136,8325,8237,705N/A
4/27/202528,0896,7585,8617,456N/A
1/26/202527,6356,3435,9357,277N/A
10/27/202427,1767,1777,4878,677N/A
7/28/202426,8547,4506,5657,657N/A
4/28/202426,5017,3056,8057,855N/A
1/28/202426,4857,1587,7078,755N/A
10/29/202326,5176,8567,5948,700N/A
7/30/202326,5436,4436,9828,002N/A
4/30/202326,6386,4895,9136,888N/A
1/29/202326,2536,4504,0815,011N/A
10/30/202225,7856,5254,6125,399N/A
7/31/202225,1596,6464,9205,690N/A
5/1/202224,8356,7565,2105,907N/A
1/30/202224,1726,5505,9886,679N/A
10/31/202123,0635,8884,7745,442N/A
8/1/202121,6285,3074,9855,609N/A
5/2/202119,8274,4324,2164,790N/A
1/31/202118,2023,8573,7974,238N/A
10/25/202017,2023,6193,3823,804N/A
7/26/202016,2683,1862,9583,315N/A
4/26/202015,4352,9162,8723,235N/A
1/26/202015,0172,8272,9903,400N/A
10/27/201914,6082,706N/A3,247N/A
7/28/201914,6132,765N/A3,498N/A
4/28/201915,2133,210N/A3,344N/A
1/27/201916,2533,644N/A3,155N/A
10/28/201816,7053,038N/A3,787N/A
7/29/201816,9153,263N/A3,419N/A
4/29/201816,4973,172N/A4,163N/A
1/28/201815,4642,896N/A4,463N/A
10/29/201714,6983,519N/A3,789N/A
7/30/201713,8653,062N/A3,877N/A
4/30/201712,9422,642N/A3,481N/A
1/29/201711,8462,138N/A3,051N/A
10/30/201610,8251,721N/A2,566N/A
7/31/20169,8961,447N/A2,140N/A
5/1/20169,5651,271N/A1,493N/A
1/31/20169,5571,315N/A1,310N/A
10/25/20159,6591,377N/A1,163N/A
7/26/20159,5551,297N/A1,099N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMAT's forecast earnings growth (13.9% per year) is above the savings rate (3.5%).

Earnings vs Market: AMAT's earnings (13.9% per year) are forecast to grow slower than the US market (16.4% per year).

High Growth Earnings: AMAT's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMAT's revenue (12.5% per year) is forecast to grow faster than the US market (11.4% per year).

High Growth Revenue: AMAT's revenue (12.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AMAT's Return on Equity is forecast to be high in 3 years time (37.3%)

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/06 12:31
End of Day Share Price 2026/05/06 00:00
Earnings2026/01/25
Annual Earnings2025/10/26

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Applied Materials, Inc. is covered by 51 analysts. 31 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett SimpsonArete Research Services LLP
James FontanelliArete Research Services LLP
James KelleherArgus Research Company