Applied Materials, Inc. (AMAT) Stock Analysis
Latest ClaritX AI analysis ·
Applied Materials, Inc. engages in provision of materials engineering solutions used to produce semiconductors. The firm also focuses on design, development, production, and servicing of the critical wafer fabrication tools used for customers to manufacture semiconductors. It operates through the following segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes designing, development, manufacturing and sale of equipment used to fabricate semiconductor chips referred to as integrated circuits. The AGS segment engages in provision of services, spares, and factory automation software to customer fabrication plants globally. The company was f
| Metric | Value |
|---|---|
| Price | $530.27 |
| Market cap | $421.0B |
| Sector | Technology |
| Industry | Semiconductors |
| ClaritX AI score | 70/100 |
| Price/Book | 16.43 |
| Dividend yield | 0.37% |
| Beta | 1.59 |
AI verdict
Applied Materials (AMAT) stands as a fundamentally flawless, near-monopolistic enterprise providing the indispensable physical architecture for the global AI revolution. Boasting towering profitability metrics—including a 40.44% Return on Equity and 30.05% net profit margins—alongside an impenetrable balance sheet, the underlying business quality is unparalleled. Institutional sentiment remains highly constructive, reinforced by a newly announced major R&D partnership with Intel and consensus price targets averaging $647.82. With a rational forward PEG ratio of 1.18, AMAT offers supreme intrinsic value for investors seeking long-term exposure to secular semiconductor infrastructure expansion. However, the immediate tactical risk profile demands extreme positional caution. The stock currently trades at $530.27, remaining 28.3% below its euphoric 52-week high of $739.67. This massive gap guarantees a dense reservoir of overhead supply, as trapped buyers will fiercely contest sustained upward movement to exit at break-even. Furthermore, despite a recent 2.2% pullback, the RSI remains at an absurdly extreme 90.91, signaling severe momentum exhaustion. Combined with a highly elevated beta of 1.591 and a disturbing absence of insider buying following massive Q2 liquidations, the stock is mathematically hard-coded for severe near-term volatility. Rating 70/100
What this score has been worth
ClaritX scores AMAT 70 out of 100 (snapshot 2026-10-15).
Every ClaritX analysis is scored first and judged only on what the stock did afterwards. Across the 301 analyses that scored in the 70-79 band, the average forward return was +1.5% with a 53% win rate, -2.8pp against the S&P 500. That is a measured tendency across many names, not a forecast for AMAT — roughly 47% of stocks in this band still lost money.
The full band-by-band table, including the bands that lost, is on the AI Rank Report; the live strategy arms behind it are on the AI Track Record, losses published.