BN · rank #4 · 2026-10-20
AMAT
NASDAQ · $327.84B (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. | +35.2% |
| Forward net margin Consensus forward net margin. | +32.1% |
| Net margin TTM Trailing twelve month net margin. | +30.0% |
| Margin expansion Forward minus trailing net margin (percentage points). | +2.0% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 0.83 |
| 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. | +52.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +4% |
| Market cap (USD) | $327.84B |
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 company, supplying deposition, etch, inspection, and packaging tools to leading-edge logic, DRAM, HBM, and advanced-packaging fabs globally.
Rationale
AMAT's eight-quarter customer visibility, 25% YoY revenue growth, 0.83x forward PEG, and deep co-development partnerships with TSMC, SK hynix, and Intel directly validate the bottleneck-solver thesis — it is embedded in the AI chip supply chain at the materials-engineering layer where no single competitor replicates its full portfolio.
Material risks
- 1Additional U.S. export controls on China could abruptly remove a material revenue market, directly breaking the sustained-capex assumption the bottleneck-solver thesis depends on.
- 2Management's refusal to provide an industry spending forecast at the October presentation leaves cycle durability unquantified, raising the probability that AI-infrastructure capex peaks before EPIC Center partnerships generate incremental revenue.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.