Applied Materials, Inc. (AMAT)
Applied Materials is the essential engine room of the tech world, building the complex machines that chipmakers use to manufacture the world's semiconductors.
Is Applied Materials, Inc. a good stock for a UK beginner?
The honest version: Applied Materials is the essential engine room of the tech world, building the complex machines that chipmakers use to manufacture the world's semiconductors.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Long-term dominance in next-generation chip manufacturing technology
Significant loss of market share to emerging competitors
What does Applied Materials, Inc. do?
Think of Applied Materials as the 'toolmaker' for the digital age; they don't design the chips themselves, but they provide the highly specialised equipment required to print them. Income arrives from selling these sophisticated machines, plus the ongoing maintenance and software needed to keep them running. Global demand for new chip factories is the thing to track, since their success is tied to how much tech companies spend on expanding their manufacturing capacity.
On our factor screen it looks strongest on quality and momentum, and weakest on value.
- ✓Pays a dividend - about 0.4% a year
- ✓Growing - revenue up about 11% over the year
- ✓Very profitable - turns about 29% of sales into profit
- !High P/E of 47 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 40%)
- Quality screens high (76/100)
- Momentum screens high (72/100)
- Essential role in the global semiconductor supply chain
- Strong profit margins indicating a high-value product
- High return on equity showing efficient use of capital
- Value screens low (21/100)
- Geopolitical tensions affecting global trade and supply chains
- Potential for a slowdown in capital spending by major chipmakers
- High share price volatility compared to the broader market
What do Applied Materials, Inc.'s numbers mean?
How much money does Applied Materials, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Applied Materials, Inc. pay a dividend?
Yes - Applied Materials, Inc. currently pays a dividend of about 0.4% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Applied Materials, Inc. report earnings, and how did recent quarters go?
Applied Materials, Inc. is next scheduled to report on about 2026-08-13 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-05-14 | $2.69 | $2.86 | Beat +6% |
| 2026-02-12 | $2.21 | $2.38 | Beat +8% |
| 2025-11-13 | $2.09 | $2.17 | Beat +4% |
| 2025-08-14 | $2.36 | $2.48 | Beat +5% |
| 2025-05-15 | $2.31 | $2.39 | Beat +3% |
| 2025-02-13 | $2.30 | $2.38 | Beat +4% |
Across the last 6 quarters here, Applied Materials, Inc. came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Applied Materials, Inc.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Applied Materials, Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Essential role in the global semiconductor supply chain
- Strong profit margins indicating a high-value product
- High return on equity showing efficient use of capital
- High valuation multiples suggest high expectations are already priced in
- Very low dividend yield offers little income for shareholders
- Business is highly sensitive to the cyclical nature of the chip industry
- Geopolitical tensions affecting global trade and supply chains
- Potential for a slowdown in capital spending by major chipmakers
- High share price volatility compared to the broader market
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in global semiconductor manufacturing investment
- Loss of technological leadership to a rival equipment manufacturer
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.