APPLIED MATERIALS INC /DE · Semiconductors

AMAT

Low riskAI: Chip equipment and designNext report: Around Nov 12 (est.)

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The short version

A high-quality, profitable business with growing sales. Institutions are adding.

Going well

Sales up 25% in the latest quarter vs a year ago
Profitable every year for 10 years
Brings in more cash than it spends

Money moves

Insiders sold $395K in the last 30 days
Institutions added 6% to their holdings in the quarter ending June 2026 (1730 bought, 1441 sold)
Held by Philippe Laffont (Coatue), Chase Coleman (Tiger Global), Ray Dalio (Bridgewater)

Facts from SEC filings, not a recommendation.

What the price means

Price as of Oct 26

$387.51+2.7% that day

Company value: $307.5B; Share price times all shares
Price vs profit (P/E): 33.4x; You pay about $33 for each $1 of yearly profit
Price vs sales: 10.0x; Company value is 10.0 times a year of sales
Dividend yield: 0.5%; Yearly dividend as a share of today's price
Cash vs value: 2%; Cash as a share of company value
Debt vs value: 2%; Debt as a share of company value

From AMAT's last IEX trade and its SEC filings (profits and sales over the last four quarters). A starting point for research, not a verdict.

The business over time

Last 12 quarters, from SEC filings

Sales, Jul '26

$9.1B+25% vs a year earlier

Oct '23Tap a barJul '26

Last 12 months: $30.8B, up 7.8% from the 12 months before. Over 5 years, sales grew about 11% a year.

What the price assumes

Your guesses, our math

Move the sliders to your own view of AMAT. Starting points are the company's recent numbers.

Sales growth+8% a yearRecently: +7.8% a yearProfit margin30%Last 12 months: 30.1%P/E at the end33xToday: 33.4x. Many steady companies trade at 12x to 25xShare count change-3% a yearBelow zero means buybacks; above zero means new shares (dilution)

Sales in 5 years$45.3B

Profit in 5 years$13.6B

Price these guesses point to$658.21+70% vs $387.51 todayAbout +11% a year, before dividends

What today's price needs: with a 30% margin and a 33x P/E, sales could shrink about 2.9% a year for 5 years and still match today's price.

Simple math on your guesses, not a forecast or a price target. Real results depend on many things these sliders leave out.

Price

Price chart by TradingView.

Business quality

The checklist Warren Buffett-style investors use. Annual numbers for 2025.

7/7Strong

PassReturn on equity 15%+Earns a lot on the money owners have in the business.34.7%
PassDebt under half of equityNot relying on borrowed money.0.30x equity
PassNet margin 10%+Keeps at least 10 cents of profit from each dollar of sales.24.7%
PassProfitable every yearSteady profits, not one good year.10 of 10 years
PassFree cash flow positiveBrings in more cash than it spends to run and grow.$5.7B
PassShare count not growingNot diluting owners. Falling means buybacks.-7.9% in 3 years
PassGross margin 40%+Pricing power: sells for well above what it costs to make.48.7%

Revenue: $28.4B; +4.4% vs prior year
5-year growth: +10.5%/yr; revenue, per year
Total debt: $6.5B; 0.30x equity
Current ratio: 2.71x; short-term assets / bills due

From annual reports filed with the SEC. A checklist is a starting point for research, not a verdict.