BN · rank #7 · 2026-09-08
AMAT
NASDAQ · $360.86B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.67 |
|---|---|
| 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. | 0.87 |
| 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. | +40.9% |
| Last EPS surprise Most recent reported EPS versus consensus. | +4% |
| Market cap (USD) | $360.86B |
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 a leading semiconductor equipment supplier providing deposition, etch, and inspection tools critical to logic, memory, and advanced packaging fabs worldwide.
Rationale
Record consecutive quarterly revenues in fiscal 2026, a 0.87 forward PEG, 34.7% revenue growth, and new DRAM-focused systems directly validate the bottleneck-solver thesis that AMAT's tools are structurally embedded in AI chip and high-density memory scaling flows.
Material risks
- 1Export-control expansion remains the sharpest thesis risk — the existing ~$600M China revenue offset is fragile, and a broader tightening could structurally remove a meaningful revenue pool with no near-term substitute customer base.
- 2AMAT lacks sole-source status across its portfolio; if leading memory or logic customers consolidate around Lam Research or Tokyo Electron for specific process steps, its broad-but-not-exclusive moat could erode faster than the installed base suggests.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.