Applied Materials (AMAT)
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
$454.71+4.31%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySemiconductorsSnapshot 2026-09-04
QuarterlyIQ Insights · AMAT
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks AMAT against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 8 guided quarters · 5.9% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to expand semiconductor equipment revenue significantly in 2026, driven by AI demand and leadership in logic, DRAM, and advanced packaging.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $7.01B in 2026-Q1 to $9.12B in 2026-Q3 (+30%), with Semiconductor Systems segment revenue increasing from $5.14B to $7.04B (+37%). CEO reiterated the 30%+ growth target for 2026 and the trajectory is delivering.
“CEO: 'We are confident we will grow faster than the market this year.'”
“CEO: 'We now expect our semiconductor equipment business to grow more than 30 percent in calendar 2026.'”
“CEO: 'We expect to grow our semiconductor equipment business over 20 percent this calendar year.'”
Grow and deepen EPIC Center collaborations with chipmakers, universities, and partners to speed commercialization of breakthrough semiconductor technologies.
Stated as a priority in 3 of last 3 quarters. Management expanded EPIC Center partnerships from initial collaborations in 2026-Q1 to 11 engagements by 2026-Q3, including major chipmakers and universities. The company is actively growing this innovation ecosystem, showing delivering progress.
“EPIC Center R&D partnerships expand to 11 engagements with leading chipmakers, universities and innovation partners.”
Invest in manufacturing capacity and expand global operations to support growing demand through the end of the decade.
Stated in 2 of last 3 quarters. Management invested $500M to expand Singapore manufacturing capacity and announced further capacity investments to meet demand through decade end. The company is delivering on capacity expansion with tangible capital deployment.
Ensure operational excellence and supply chain robustness to meet increasing customer demand and improve productivity.
Stated in 2 of last 3 quarters. Management emphasized supply chain and operational readiness, citing increased build plans and inventory. Financials show revenue growth and margin expansion consistent with supporting customer demand, indicating delivering progress.
“Top priority is ensuring operational and supply chain readiness to support customer growth.”
Continue returning capital to shareholders through dividends and share repurchases with consistent increases.
Stated in 3 of last 3 quarters. Management consistently returned capital via dividends and share repurchases, increasing dividend per share from $0.46 in 2026-Q1 to $0.53 in 2026-Q3. Total shareholder distributions rose from $765M in 2026-Q2 to $860M in 2026-Q3, delivering on capital return commitments.
Over the trailing year it converted 0.90x of net income into operating cash flow. Historically, Information Technology names rated fragile grew net income 42% of the time over the next year (vs 59% for the rest of the cohort, n=3128).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
11 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“Announced several EPIC Center engagements with chipmakers and partners to accelerate commercialization.”
“Samsung Electronics will join Applied's new EPIC Center in Silicon Valley.”
“Making additional manufacturing capacity investments to support projected demand through the end of the decade.”
“Expanded manufacturing and R&D operations in Singapore with $500 million Tampines Campus.”
“Nearly doubled system manufacturing capability, strengthened supply chain and increased inventories.”
“Distributed $860 million to shareholders through $440 million in share repurchases and $420 million in dividends.”
“Distributed $765 million to shareholders through $400 million in share repurchases and $365 million in dividends.”
“Distributed $702 million to shareholders through $337 million in share repurchases and $365 million in dividends.”