3.67%
11.74%
0.08%
-14.36%
10.60%
31.51%
213.36%
AI Spotlight on AMAT
Company Description
Applied Materials, Inc.provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.This segment also offers various technologies, including epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal, as well as metrology and inspection tools.The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, remanufactured earlier generation equipment, and factory automation software for semiconductor, display, and other products.
The Display and Adjacent Markets segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, electronic tablets, smart phones, and other consumer-oriented devices.The company operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.Applied Materials, Inc.
was incorporated in 1967 and is headquartered in Santa Clara, California.
Market Data
| Last Price | 181.72 |
| Change Percentage | 3.67% |
| Open | 179.4 |
| Previous Close | 175.28 |
| Market Cap ( Millions) | 147684 |
| Volume | 5990151 |
| Year High | 255.89 |
| Year Low | 158.96 |
| M A 50 | 174.13 |
| M A 200 | 198.01 |
Financial Ratios
| FCF Yield | 5.07% |
| Dividend Yield | 0.84% |
| ROE | 39.07% |
| Debt / Equity | 32.94% |
| Net Debt / EBIDTA | -21.34% |
| Price To Book | 7.86 |
| Price Earnings Ratio | 20.81 |
| Price To FCF | 19.73 |
| Price To sales | 5.43 |
| EV / EBITDA | 17.66 |
News
- Jan -30 - Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term.
- Jan -28 - Applied Materials (AMAT) Stock Declines While Market Improves: Some Information for Investors
- Jan -24 - Alphabet, Uber, Applied Materials, and 19 Other Picks From the Barron's Roundtable
- Jan -23 - AMAT Stock Soars 16% in a Month: Time to Hold or Book Profits?
- Jan -23 - Applied Materials to Report Fiscal First Quarter 2025 Results on February 13, 2025
- Jan -22 - Applied Materials Will Be A Semiconductor Leader In 2025
- Jan -21 - Here's Why Applied Materials (AMAT) Gained But Lagged the Market Today
- Jan -21 - The Zacks Analyst Blog The Home Depot, RTX, Applied Materials, Kewaunee Scientific and AXIL Brands
- Jan -17 - AMAT & LRCX Upgrades, AVGO Price Target Hike, AAL & LUV Downgrades
- Jan -17 - Applied Materials and Lam Research Stock Are Upgraded. Of Course It Has Something to Do With AI.
- Jan -16 - Why Semiconductor Equipment Stocks Applied Materials, Lam Research, and KLA Corp. Rallied Today
- Jan -15 - 2 AI Stocks I'm Buying in January 2025
- Jan -14 - Applied Materials (AMAT) Rises Higher Than Market: Key Facts
- Jan -08 - Applied Materials (AMAT) Stock Falls Amid Market Uptick: What Investors Need to Know
- Jan -06 - Why Citi is bullish on the chip sector
- Jan -06 - The Law Offices of Frank R. Cruz Continues Its Investigation of Applied Materials, Inc. (AMAT) on Behalf of Investors
- Jan -03 - Applied Materials (AMAT) Advances While Market Declines: Some Information for Investors
- Dec -31 - Better Artificial Intelligence Stock: Applied Materials vs. ASML
- Dec -23 - Applied Materials: DRAM Will See Significant Growth In 2025
- Dec -22 - Prediction: 1 Struggling AI Stock to Buy in December Could Make Investors a Fortune in 2025
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Semiconductor Systems
Expected Growth : 8 %
What the company do ?
Semiconductor Systems from Applied Materials, Inc. provides manufacturing solutions for chipmakers, enabling them to produce smaller, faster, and more powerful microchips.
Why we expect these perspectives ?
Applied Materials' Semiconductor Systems segment growth is driven by increasing demand for advanced logic and foundry, 5G and IoT devices, and rising adoption of artificial intelligence and machine learning. Additionally, the company's leadership in wafer fabrication equipment and its ability to provide comprehensive solutions to customers contribute to its growth.
Segment n°2 -> Applied Global Services
Expected Growth : 6 %
What the company do ?
Applied Global Services is a segment of Applied Materials, Inc. that provides comprehensive services and solutions to improve semiconductor manufacturing efficiency and productivity.
Why we expect these perspectives ?
Applied Global Services' 6% growth is driven by increasing demand for semiconductor manufacturing equipment, driven by the proliferation of AI, 5G, and IoT devices. Additionally, the company's focus on providing services and solutions to improve customers' operational efficiency, yield, and productivity contributes to its growth.
Segment n°3 -> Liquid Crystals Displays, Organic Light-emitting Diodes and Equipment Upgrades and Other Display Technologies
Expected Growth : 5 %
What the company do ?
Liquid Crystals Displays (LCDs) and Organic Light-emitting Diodes (OLEDs) are display technologies, while Equipment Upgrades enhance manufacturing capabilities, all offered by Applied Materials, Inc. for innovative display solutions.
Why we expect these perspectives ?
Increasing demand for high-resolution displays, growing adoption of OLED and LCD technologies in smartphones, TVs, and automotive applications, and rising investments in display panel manufacturing capacity expansions and upgrades drive the 5% growth in Applied Materials' Display Technologies segment.
Segment n°4 -> Corporate and Other
Expected Growth : 4 %
What the company do ?
Corporate and Other from Applied Materials, Inc. refers to the company's non-operating and unallocated items, including stock-based compensation, acquisition-related costs, and other miscellaneous expenses.
Why we expect these perspectives ?
Applied Materials' Corporate and Other segment growth is driven by increasing demand for semiconductor capital equipment, growing adoption of artificial intelligence and big data analytics, and expansion into new markets such as China. Additionally, the company's strategic investments in research and development, as well as its focus on operational efficiency, contribute to its 4% growth.
Applied Materials, Inc. Products
| Product Range | What is it ? |
|---|---|
| Etch Systems | Etch systems are used to create high-aspect-ratio structures and patterns on silicon wafers, enabling the production of advanced semiconductors. |
| Deposition Systems | Deposition systems are used to deposit thin films of material onto silicon wafers, enabling the production of advanced semiconductors. |
| Metrology and Inspection Systems | Metrology and inspection systems are used to measure and inspect the properties of silicon wafers and semiconductor devices. |
| CMP Systems | Chemical mechanical planarization (CMP) systems are used to planarize silicon wafers, enabling the production of advanced semiconductors. |
| Wafer Cleaning Systems | Wafer cleaning systems are used to clean and prepare silicon wafers for further processing. |
| Ion Implantation Systems | Ion implantation systems are used to introduce dopants into silicon wafers, enabling the production of advanced semiconductors. |
| Physical Vapor Deposition (PVD) Systems | PVD systems are used to deposit thin films of material onto silicon wafers, enabling the production of advanced semiconductors. |
| Chemical Vapor Deposition (CVD) Systems | CVD systems are used to deposit thin films of material onto silicon wafers, enabling the production of advanced semiconductors. |
| Display and Adjacent Markets | Display and adjacent markets solutions are used in the production of displays, such as OLED and LCD displays. |
Applied Materials, Inc.'s Porter Forces
Threat Of Substitutes
Applied Materials, Inc. faces moderate threat from substitutes, as customers have limited alternatives for its specialized semiconductor manufacturing equipment.
Bargaining Power Of Customers
Applied Materials, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.
Bargaining Power Of Suppliers
Applied Materials, Inc. relies on a few key suppliers for critical components, giving them some bargaining power, but the company's large scale and diversified supply chain mitigate this risk.
Threat Of New Entrants
The high barriers to entry in the semiconductor manufacturing equipment industry, including significant capital expenditures and technological expertise, make it difficult for new entrants to challenge Applied Materials, Inc.'s market position.
Intensity Of Rivalry
The semiconductor manufacturing equipment industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 25.38% |
| Debt Cost | 4.82% |
| Equity Weight | 74.62% |
| Equity Cost | 11.85% |
| WACC | 10.06% |
| Leverage | 34.01% |
Applied Materials, Inc. : Quality Control
Applied Materials, Inc. passed 9 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| KLAC | KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through four segments: Semiconductor Process Control; Specialty … |
| LRCX | Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten … |
| TXN | Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to … |
| AVGO | Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. … |
| MCHP | Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Texas Instruments
A-Score
1-Year Total Return ->
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Broadcom
A-Score
1-Year Total Return ->
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Lam Research
A-Score
1-Year Total Return ->
4
Applied Materials
A-Score
1-Year Total Return ->
5
KLA
A-Score
1-Year Total Return ->
6
