BN · rank #9 · 2026-09-04
AMAT
NASDAQ · $345.94B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.69 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +34.7% |
| Forward net margin Consensus forward net margin. | +32.2% |
| Net margin TTM Trailing twelve month net margin. | +30.0% |
| 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. | 0.88 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.31× |
| Analyst upside Spread between the consensus 12m target and the current price. | +47.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +4% |
| Market cap (USD) | $345.94B |
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 leading supplier of semiconductor deposition, etch, and process-control equipment, now generating record $9.12B quarterly revenue driven by AI-related DRAM, advanced packaging, and logic demand.
Rationale
AMAT is a structural bottleneck-solver in the AI chip supply chain — its new 3D architecture production systems and the SK hynix HBM partnership directly address the advanced_ai_chip_packaging_and_memory macro theme, and a 0.88 forward PEG with 47% analyst upside on record margins confirms the signal is fundamentally grounded, not merely sentiment-driven.
Material risks
- 1Customer concentration and captive tool development risk — Samsung, TSMC, and Intel each have internal process-integration teams that could partially internalize steps AMAT currently owns, eroding sole-supplier leverage in specific deposition or packaging modules over a 2–3 year horizon.
- 2Export control escalation targeting advanced semiconductor equipment to China remains AMAT's most acute near-term revenue cliff, given China has historically represented ~30% of segment revenue and further BIS restrictions could compress the forward growth rate well below the modeled 34.7%.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.