BN · rank #7 · 2026-07-21
AMAT
NASDAQ · $417.38B (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. | +18.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | +6% |
| Market cap (USD) | $417.38B |
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 with a high-margin services tail from its massive installed base.
Rationale
AMAT directly solves the advanced AI chip packaging and 3D memory bottleneck via co-developed, multi-year contracted tools embedded at TSMC, Samsung and SK hynix, giving the bottleneck-solver thesis structural rather than sentiment-driven support, reinforced by record Q2 FY2026 results, a Q3 guide well above prior Street estimates, and a fwd PEG of 1.34 that prices in 27% revenue growth at a modest premium.
Material risks
- 1Escalating U.S. export controls on China are a concrete, already-realized revenue headwind (~$600M FY2026 drag) that could deepen if enforcement tightens further, directly compressing the growth rate underpinning the valuation thesis.
- 2~25% DRAM revenue exposure ties a meaningful slice of the order book to memory capex cycles, which can inflect sharply downward and compress both revenue and margins faster than the foundry/logic business.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.