BN · rank #7 · 2026-07-20
AMAT
NASDAQ · $420.53B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.63 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +27.5% |
| Forward net margin Consensus forward net margin. | +31.4% |
| Net margin TTM Trailing twelve month net margin. | +29.3% |
| Margin expansion Forward minus trailing net margin (percentage points). | +2.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.34 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.21× |
| Analyst upside Spread between the consensus 12m target and the current price. | +17.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +6% |
| Market cap (USD) | $420.53B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Applied Materials is the world's largest non-lithography semiconductor equipment vendor, supplying deposition, etch, CMP, implant and inspection tools to leading fabs globally while generating recurring high-margin revenue from a massive installed base.
Rationale
AMAT directly solves the advanced 3D chip architecture and high-density memory bottlenecks driving AI infrastructure buildout, with record Q2 FY2026 revenue, above-consensus Q3 guidance of $8.5–$9.5B, a 27% forward revenue growth signal, and deep co-development contracts at TSMC, Samsung and SK hynix confirming structural demand rather than sentiment rotation.
Material risks
- 1Expanded U.S. export controls on China are already quantified at ~$600M in FY2026 revenue headwind, and any further escalation—given AMAT's prior $252M Commerce settlement tied to SMIC shipments—could materially compress the growth trajectory underpinning the bottleneck-solver thesis.
- 2Roughly 25% of revenue tied to DRAM equipment means a memory capex downturn at Micron, SK hynix or Samsung could create a sharp air pocket in orders that the AI logic tailwind alone would not fully offset.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.