BN · rank #7 · 2026-07-24
AMAT
NASDAQ · $446.84B (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. | 1.40 |
| 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. | +10.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +6% |
| Market cap (USD) | $446.84B |
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 semiconductor equipment supplier, providing deposition, etch, inspection, and advanced packaging tools that are deeply embedded in leading-edge logic, DRAM, and HBM process flows at major foundries and memory makers.
Rationale
AMAT screens validly as a bottleneck solver because its tools address non-substitutable process steps in HBM and advanced packaging capacity buildouts, record Q2 FY2026 revenue with 32.1% operating margins and a 1.4x forward PEG confirm structural demand rather than sentiment rotation, and its growing services/spares base provides revenue visibility beyond equipment cycles.
Material risks
- 1U.S. export control expansion is a concrete, quantified headwind — management has guided to a $600–710M FY2026 revenue hit — which directly erodes the revenue growth thesis and could worsen if controls broaden to additional geographies or tool categories.
- 2Foundry and memory capex cyclicality remains real; if AI infrastructure spending decelerates or major customers like TSMC or Samsung defer advanced packaging tool orders, AMAT's 27.5% forward revenue growth estimate faces meaningful downside revision.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.