Applied Materials (AMAT): analysis in plain words
Is Applied Materials cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Applied Materials (AMAT) is listed on the Nasdaq and we classify it in semiconductors. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Applied Materials according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Applied Materials (AMAT) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $369.40 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 31.9x | Price over earnings per share |
| Revenue growth | +24.8% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 30.1% | Profit for every 100 of sales |
| Net debt / EBITDA | Net cash (more cash than debt) | Years of operating profit to repay debt |
| Dividend yield | 0.56% | Annual dividend over price |
| Market cap | $293.2 billion | What the stock market values it at |
The Applied Materials figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any AMAT figure that is not available shows as N/A: we do not estimate it.
How Applied Materials makes money
Applied Materials builds the equipment chipmakers use to deposit, etch and inspect layers on silicon wafers. Its Semiconductor Systems segment brings in most revenue, while Applied Global Services sells spare parts, upgrades and service contracts for machines already installed. Key customers include TSMC, Samsung and Intel, with Asia as the largest market.
Over the last 12 months, Applied Materials brought in revenue of $30.8 billion. For every 100 it sells, Applied Materials keeps 49.4 after the direct cost of what it sells (gross margin) and 33.7 after all operating costs (operating margin).
Applied Materials against its sector
To know whether a Applied Materials figure is high or low you have to put it next to similar companies. This table compares Applied Materials with the median of the 14 semiconductors companies Fintols covers, with data as of November 4, 2026.
| Figure | Applied Materials | semiconductors median |
|---|---|---|
| P/E | 31.9x | 37.9x (14) |
| Revenue growth | +24.8% | +39.6% (15) |
| Net margin | 30.1% | 32.3% (15) |
| Dividend yield | 0.56% | 0.57% (15) |
| Net debt / EBITDA | -0.2x | -0.2x (15) |
In short, against the typical semiconductors company, Applied Materials trades on a lower P/E and grows more slowly. By size, Applied Materials ranks number 7 of 13 semiconductors companies quoted in USD on Fintols.
The bull case for Applied Materials
These are the strengths in the Applied Materials figures as of November 4, 2026:
- Analysts expect Applied Materials earnings to rise: its P/E on the next 12 months of estimated earnings is 19.9x, below the current 31.9x.
- Applied Materials earns 41.1% a year on its shareholders' money (return on equity).
- Its net margin over the last 12 months is 30.1% (sector median: 32.3%): Applied Materials turns a large share of its sales into profit.
The main risk for Applied Materials
Applied Materials stock sits 50% below its 52-week high ($739.67): the market has cut its expectations, and it is worth understanding why first.
On top of that: applied Materials stock moves much more than the market: its beta is 1.67, so in a broad sell-off it tends to fall further than the index.
And, like the rest of semiconductors, Applied Materials is exposed to the chip cycle: years of heavy customer spending are usually followed by years of cuts.
Frequently asked questions about Applied Materials
Is it a good time to buy Applied Materials stock?
Fintols does not tell you whether to buy or sell Applied Materials, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Applied Materials stock trades at $369.40, 50% below its 52-week high ($739.67) and 82% above its low ($203.40). Its P/E is 31.9x against a semiconductors median of 37.9x, and 19.9x on the earnings analysts expect over the next 12 months. With Applied Materials, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Applied Materials pay a dividend?
Yes. As of November 4, 2026, Applied Materials pays $2.12 per share a year, which at today's price is a yield of 0.56%. It uses 16% of its profit to pay it, which leaves room to keep paying it if profit dips.
Is Applied Materials stock expensive?
It depends on what you compare it with. On P/E, Applied Materials trades at 31.9x its last 12 months of earnings: cheaper than the semiconductors median (37.9x). Including its debt, Applied Materials is valued at 29.7x its EBITDA (EV/EBITDA). A high P/E alone does not make Applied Materials expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Applied Materials's competitors?
On Fintols we compare Applied Materials with Intel, Qualcomm and Texas Instruments, which are also in semiconductors. As of November 4, 2026, Intel is worth $309.7 billion; Qualcomm is worth $184.9 billion and trades on a P/E of 20.0; Texas Instruments is worth $284.8 billion and trades on a P/E of 40.4. Each has a side-by-side comparison with Applied Materials below.
Applied Materials competitors
- Intel (INTC) analysis · Applied Materials vs Intel comparison
- Qualcomm (QCOM) analysis · Applied Materials vs Qualcomm comparison
- Texas Instruments (TXN) analysis · Applied Materials vs Texas Instruments comparison
To understand Applied Materials better
- Using AI to Analyze Stocks: A Practical, Careful Guide
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Applied Materials: semiconductors stocks and S&P 500 companies. Open the full AMAT analysis with its valuation and scenarios. Educational content about Applied Materials, not investment advice.