BN · rank #8 · 2026-09-10
AMAT
NASDAQ · $372.08B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.65 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +34.5% |
| 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). | +2.2% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.94 |
| 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. | +36.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +4% |
| Market cap (USD) | $372.08B |
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
Three consecutive record quarters in fiscal 2026, a sub-1x forward PEG of 0.94, 34.5% forward revenue growth, and new DRAM-focused systems directly address AI memory scaling bottlenecks, reinforcing AMAT as a structural bottleneck-solver rather than a sentiment trade.
Material risks
- 1Broad process coverage rather than sole-source status means key customers (TSMC, Samsung, SK Hynix) could partially substitute or in-house integrate specific process steps, gradually eroding AMAT's bottleneck-solver premium in any single application.
- 2The $600M China export-control headwind is currently offset by the affiliate-rule suspension, but any re-tightening or new restrictions could remove that offset and compress fiscal 2027 revenue visibility materially.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.