Applied Materials Inc (AMAT) Fair Value & Analysis
Technology · US · Market cap $460B · ISIN US0382221051
What is Applied Materials Inc really worth?
Applied Materials Inc
AMAT · US
A strong business, but trading 138% above our fair value of $183.10.
Strengths
Risks
For context
Fair value as of: Aug 29, 2026
From 26 valuation models · updated 7 days ago
Share price −20.3% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- The price sits above even our optimistic bull case ($247.47). The favourable scenario is already priced in.
- A fairly wide model range ($103.89 to $247.47) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.
How to read this chart
60‑month range $72.07 – $723.00 · fair‑value band $103.89 – $247.47 · the $435.91 price screens above the $183.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 29, 2026.
Analysis
Applied Materials Inc (AMAT) currently trades at $435.91, while our model-based Fair Value estimate is $183.10, implying the stock looks roughly 138.1% overvalued today. The Quality Score stands at 77/100 (high quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of $190.24 per share, and 0 of the 26 models we run sit above the $435.91 price. Bear case: the Dividend Discount group reads lowest at $29.99, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Applied Materials Inc generated revenue of $29.0B at a net margin of 29.3%. Revenue grew 11.4% year over year. It earns a return on equity of 39.7%. The balance sheet holds a net cash position of $191M. Fundamentals as of Aug 29, 2026
Our scenario range runs from $103.89 (bear case) to $247.47 (bull case); at $435.91, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 183% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −71% fair-value upside, at −58%, AMAT screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 10 months have passed since. In that time the company retained roughly $7.11 per share, which is 3.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: Growth Earnings ($190.24) versus Asset-Based ($17.23). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 74 · Market factors (momentum, volatility) 52
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments.
Full company description
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. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Applied Materials Inc reported revenue of $28.4B in FY2025 versus $23.1B in FY2021, a compound +5.3%/yr. Reported net income was $7.0B in FY2025, compounding +4.4%/yr from FY2021.
of which total revenue +12.0 % · buybacks/dilution +4.1 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
AMAT screens 138% overvalued. Compare with ASML Holding →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- How Investors Are Reacting To Applied Materials (AMAT) AI-Fueled Backlog, New Fabs And EPIC Center Bet
- What Does Applied Materials (AMAT) Gain From Its New Board Appointment?
- The AI Buildout Is Turning Applied Materials (AMAT) Into A Profit Machine
- Applied Materials Appoints Akash Palkhiwala to Board of Directors
Peer Group
Semiconductor Equipment & Materials · 213 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Semiconductor Equipment & Materials median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 44/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Semiconductor Equipment & Materials stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| ASML Holding ASML | €1,494 | €604.27 | −60% |
| Lam Research Corporation LRCX | $301.90 | $91.80 | −70% |
| KLA Corporation KLAC | $175.54 | $74.58 | −58% |
| NAURA Technology Group 002371 | ¥707.90 | ¥205.30 | −71% |
| Teradyne, Inc TER | $354.97 | $65.80 | −81% |
| Advanced Micro-Fabrication Equipment Inc 688012 | ¥380.95 | ¥55.05 | −86% |
| Piotech Inc 688072 | ¥685.11 | ¥89.27 | −87% |
| Hon. Precision, Inc 7769 | 6,445 TWD | 1,804 TWD | −72% |
| Hangzhou Changchuan Technology Co 300604 | ¥284.80 | ¥46.26 | −84% |
| Qnity Electronics, Inc Q | $142.08 | $68.69 | −52% |
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