BN · rank #8 · 2026-07-23
AMAT
NASDAQ · $439.79B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.59 |
|---|---|
| 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. | 1.43 |
| 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. | +12.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | +6% |
| Market cap (USD) | $439.79B |
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 AI chip packaging and high-density memory bottleneck through purpose-built 3D architecture systems, with record Q2 FY2026 revenue, above-consensus Q3 guidance of $8.5–$9.5B, deep co-development contracts at TSMC/Samsung/SK hynix, and a 27.5% forward revenue growth signal that collectively reinforce the bottleneck-solver structural moat rather than mere sentiment rotation.
Material risks
- 1Escalating U.S. export controls on China are a concrete, already-realized revenue headwind (~$600M FY2026 reduction) that could deepen if enforcement tightens further, directly compressing the growth trajectory underpinning the thesis.
- 2With ~25% of revenue tied to DRAM equipment, a memory capex downturn at Micron, SK hynix, or Samsung would disproportionately hit Semiconductor Systems segment revenue and margin expansion assumptions.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.