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Applied Materials Inc AMAT

Applied Materials Inc scores good on business quality (6.6 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$507.03Oct 9, 2026
Business qualityGood
Next earningsNov 12, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Applied Materials Inc does

    Applied Materials builds the specialized equipment chipmakers use to etch and deposit microscopic layers on silicon wafers. Semiconductor manufacturers pay billions for these systems to physically enable advanced logic and memory scaling.

  2. What it does best

    Applied Materials dominates semiconductor deposition with an operating margin of 31.1%, beating peers like Teradyne at 30.9%. This edge stems from entrenched co-development partnerships with top chipmakers, making tool replacement cost-prohibitive.

  3. The main risk

    Revenue growth sits in the bottom quartile of its sector at 4.4%, constrained by cyclical digestion phases in equipment spending and customer concentration among top foundries.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margin stands at 31.1% with an ROE of 40.4%, placing return on equity in the top quartile of its sector at the 75th percentile and showing strong scale economics.

MoatStrong

High switching costs lock in major semiconductor manufacturers. An operating margin sector percentile of 81 reflects pricing power baked into proprietary deposition tools.

GrowthSlow

Revenue grew to $30.8B, up from $28.4B previously. Growth remains muted compared to broader tech peers, ranking in the 21st sector percentile.

Financial healthStrong

Interest coverage sits at 34.6x, meaning debt costs are easily managed. Free cash flow reached $5.6B, keeping the balance sheet sound with net cash of $2B.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $4.5M outside pre-planned sales.

Our sealed record on AMAT

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is AMAT a good business?

Applied Materials Inc scores good on the Cluenex quality check (6.6 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health strong.

Are insiders buying AMAT?

In the last 90 days of SEC Form 4 filings: 3 sold $4.5M outside pre-planned sales.

When does AMAT report earnings?

Nov 12, 2026, after the close.

For members

See AMAT today

  • Today's verdict on AMAT, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Applied Materials Inc (AMAT)”, https://cluenex.com/stocks/amat/, data as of Oct 10, 2026.