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Applied Materials, Inc.
S&P 500 Nasdaq 100
$456.1B
Market Cap
26.4
P/E
3.33
PEG
29.4%
ROCE
35.5%
ROE
0.32
D/E
29.2%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for AMAT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally.

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⭐ Superinvestors Holding AMAT
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 1.72M $586.9M 0.75% Mar 2026
Tiger Global Management Tiger Global Management LLC 1.66M $566.3M 2.48% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$7.91B
+11% YoY
Operating Income
$2.54B
+18% YoY
Operating Margin
32.1%
+1.4pp YoY
Net Income
$2.29B
+18% YoY
What Went Right
  • Record revenue and EPS driven by AI demand across foundry, DRAM, advanced packaging.
  • Semi Systems revenue record $5.97B, up 16% sequential, 10% YoY.
  • AGS record $1.67B, up 17% YoY; raised growth outlook to mid-teens.
What to Watch
  • China exposure 24% of Semi Systems plus AGS; flat to slightly higher expected.
  • ICAPS business flat to slightly higher due to capacity digestion; utilizations improving.
  • Supply chain constraints remain a pacing factor; manufacturing capacity doubled but supplier ramp takes time.
Management Guidance
  • Q3 FY2026 revenue: $8.95B ±$500M (up ~23% YoY).
  • Q3 non-GAAP EPS: $3.36 ±$0.20 (up ~36% YoY).
  • Semi Systems revenue ~$6.9B; AGS ~$1.75B; other ~$300M; non-GAAP gross margin ~50.1%.
Investor Lens
The investment thesis strengthens significantly. AI demand is accelerating and diversifying, with Applied capturing the fastest-growing segments (leading-edge logic, DRAM, advanced packaging). The company raised equipment growth to 30%+ for CY2026, and 2027 is expected to be another strong record year. Expanded long-term visibility (eight-quarter rolling forecasts) and AGS growth upgrade (mid-teens) support sustained revenue and margin expansion.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q2 revenue $7.91B, 50% gross margin; guidance strong.
Revenue
Record revenue of $7.91B (up 11% YoY). Semiconductor Systems contributed $5.97B (up 10% YoY), AGS $1.67B (up 17% YoY), and other $280M. Growth driven by AI infrastructure build-out in leading-edge logic, DRAM, and advanced packaging.
Profitability
Non-GAAP net income of $2.29B (up 18% YoY) and record non-GAAP diluted EPS of $2.86 (up 20% YoY). GAAP EPS was $3.51 (up 33% YoY) due to lower tax items.
Margins
Non-GAAP gross margin reached 50.0% (up 80bps YoY), driven by value-based pricing and cost innovations. Non-GAAP operating margin expanded to 32.1% (up 140bps YoY). Semi Systems gross margin approached 55%.
Balance Sheet
Cash from operations $845M; free cash flow $210M after $635M in CapEx. Distributed $765M to shareholders via $400M buybacks and $365M dividends. Dividend increased 15% YoY.
Key Risks
1) China business at 24% of revenue, with export controls a potential overhang. 2) ICAPS market digestion may persist as capacity overhang absorbs. 3) Supply chain constraints limit ability to fully meet surging demand; lead times and supplier capacity remain tight.
Outlook
Next quarter (Q3 FY2026) revenue guided to $8.95B ±$500M (up ~23% YoY) and non-GAAP EPS $3.36 ±$0.20. Management sees continued growth into 2027 with similar mix, driven by AI demand. Semi Systems expected to grow >30% in CY2026.
Generated by AI · Q2 2026 results · Not investment advice
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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