Applied Materials Inc (AMAT) Stock Analysis
Verdict: HOLD
Accelerating 3D-packaging and DRAM demand drives forward EPS growth to $18.77 by FY27, while trade restrictions anchor valuation.
Investment score: 62/100
Analysis as of
Is Applied Materials Inc stock worth reviewing? AI model thesis
From the model's perspective, Applied Materials presents a strong long-term operational thesis backed by AI packaging tailwinds, but ongoing technical weakness and insider selling warrant a Hold rating at current price levels.
7-factor investment score
- Valuation: 65/100 (weight 20%)
- Financial Health: 85/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Applied Materials Inc opportunities and risks
What speaks for AMAT
- Accelerating DRAM and Gate-All-Around (GAA) Architecture Upgrade Cycle
What speaks against AMAT
- Geopolitical and Export Control Friction on China Shipments
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| AMAT | 35.0x | 10.5x | 28.2x | 49.4% | 30.1% | 1.7% |
| LRCX | 46.2x | 14.4x | 38.3x | 50.5% | 31.3% | 1.5% |
| KLAC | 44.4x | 15.7x | 36.0x | 61.3% | 35.6% | 1.8% |
| TER | 46.3x | 11.9x | 34.7x | 59.2% | 25.8% | 1.5% |
| Q | 42.5x | 4.8x | 19.3x | 43.3% | 11.2% | 3.3% |
| ENTG | 73.3x | 6.7x | 29.1x | 45.5% | 9.2% | 2.6% |
| Peer median | 46.2x | 11.9x | 34.7x | 50.5% | 25.8% | 1.8% |
Frequently asked questions about Applied Materials Inc (AMAT)
Is AMAT stock a good investment?
The cached TradeMates AI model rates Applied Materials Inc as HOLD with an investment score of 62/100. From the model's perspective, Applied Materials presents a strong long-term operational thesis backed by AI packaging tailwinds, but ongoing technical weakness and insider selling warrant a Hold rating at current price levels. This is algorithmic model output, not personal investment advice.
Is AMAT stock a buy?
The TradeMates model verdict for AMAT is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.