Applied Materials (AMAT) Stock Analysis

November 11, 2026

This is a peer-relative look at Applied Materials (AMAT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Semiconductors & Semiconductor Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Applied Materials (AMAT)
Profile Item	AMAT
Name	Applied Materials Inc.
Country/Region	United States
GICS Sector	Information Technology
GICS Industry Group	Semiconductors & Semiconductor Equipment
GICS Industry	Semiconductors & Semiconductor Equipment
GICS Sub-Industry	Semiconductor Materials & Equipment
Market Capitalization	264.04 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	March 17, 1980
Security Type	Common Stock

Price Performance

Cumulative Growth

AMAT

GSPC

Applied Materials (AMAT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Materials (AMAT) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Materials (AMAT) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
Total Return (1Y)	62.12%	35.06%
Total Return (3Y, Annualized)	38.42%	22.14%
Total Return (5Y, Annualized)	19.86%	7.43%

Risk Profile

Drawdown History

AMAT

GSPC

Applied Materials (AMAT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Materials (AMAT) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
Volatility (1Y, Annualized)	63.72%	73.97%
Beta (5Y)	1.68	1.84
Max Drawdown (5Y)	-55.80%	-64.62%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. AMAT is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
Sharpe Ratio (1Y)	0.91	0.42
Sortino Ratio (1Y)	1.35	0.61

Profitability

ROE (TTM)

Applied Materials (AMAT) posts ROE of 41.07%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

AMAT

Semiconductors & Semiconductor Equipment industry group

41.07%

Group distribution

Max: 52.82%
AMAT: 41.07%
Q3: 22.26%
Median: 10.58%
Q1: 1.29%
Min: -16.89%

Largest peers

NVDA: 117.21%
SKHY: 92.54%
MU: 88.26%
AVGO: 44.25%
TSM: 41.86%
AMAT: 41.07%
AMD: 11.96%

Where Applied Materials (AMAT) stands on ROE within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Applied Materials (AMAT) keeps 30.05% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

AMAT

Semiconductors & Semiconductor Equipment industry group

30.05%

Group distribution

Max: 63.80%
AMAT: 30.05%
Q3: 28.36%
Median: 11.44%
Q1: 0.90%
Min: -37.77%

Largest peers

SKHY: 70.27%
MU: 63.80%
NVDA: 63.66%
TSM: 51.12%
AVGO: 42.94%
AMAT: 30.05%
AMD: 16.77%

Where Applied Materials (AMAT) stands on net margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Applied Materials (AMAT) turns 33.74% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

AMAT

Semiconductors & Semiconductor Equipment industry group

33.74%

Group distribution

Max: 58.66%
AMAT: 33.74%
Q3: 30.23%
Median: 15.91%
Q1: 7.54%
Min: -25.74%

Largest peers

MU: 80.68%
SKHY: 79.66%
NVDA: 66.24%
TSM: 58.66%
AVGO: 54.31%
AMAT: 33.74%
AMD: 21.17%

Where Applied Materials (AMAT) stands on operating margin within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
ROE (TTM)	41.07%	10.58%
ROA (TTM)	15.48%	4.85%
Net Margin (TTM)	30.05%	11.44%
Operating Margin (TTM)	33.74%	15.91%
Gross Margin (TTM)	49.40%	49.36%

Growth

Revenue Growth

Applied Materials (AMAT) grew revenue 4.39%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Applied Materials (AMAT): Revenue Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

EPS Growth

Applied Materials (AMAT) grew earnings per share 0.58%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Applied Materials (AMAT): EPS Growth across different time periods, set against Semiconductors & Semiconductor Equipment industry-group medians.

Growth Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
Revenue Growth (YoY)	4.39%	9.64%
Revenue Growth (3Y CAGR)	3.23%	0.00%
EPS Growth (YoY)	0.58%	4.90%
EPS Growth (3Y CAGR)	5.19%	-7.71%

Financial Strength

Current Ratio (MRQ)

Applied Materials (AMAT) has current ratio of 2.42, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

AMAT

Semiconductors & Semiconductor Equipment industry group

2.42

Group distribution

Max: 10.33
Q3: 5.62
Median: 3.33
AMAT: 2.42
Q1: 2.35
Min: 1.03

Largest peers

SKHY: 26.88
NVDA: 4.59
MU: 3.31
AMD: 2.73
TSM: 2.51
AVGO: 2.50
AMAT: 2.42

Where Applied Materials (AMAT) stands on current ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Applied Materials (AMAT) has debt-to-equity ratio of 0.29, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

AMAT

Semiconductors & Semiconductor Equipment industry group

0.29

Group distribution

Max: 1.46
Q3: 0.65
AMAT: 0.29
Median: 0.27
Q1: 0.04
Min: 0.00

Largest peers

AVGO: 0.60
AMAT: 0.29
NVDA: 0.17
AMD: 0.13
TSM: 0.12
SKHY: 0.05
MU: 0.04

Where Applied Materials (AMAT) stands on debt-to-equity ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
Current Ratio (MRQ)	2.42	3.33
Debt / Equity (MRQ)	0.29	0.27
Net Debt / EBITDA	-0.19	-0.36

Dividends

Dividend Yield (TTM)

Applied Materials (AMAT) has dividend yield of 0.62%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

AMAT

Semiconductors & Semiconductor Equipment industry group

0.62%

Group distribution

Max: 1.37%
Q3: 0.65%
AMAT: 0.62%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

SKHY: 2,118.64%
TSM: 1.70%
AVGO: 0.89%
AMAT: 0.62%
NVDA: 0.15%
MU: 0.09%
AMD: 0.00%

Where Applied Materials (AMAT) stands on dividend yield within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Applied Materials (AMAT) has payout ratio of 16.48%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

AMAT

Semiconductors & Semiconductor Equipment industry group

16.48%

Group distribution

Max: 49.64%
Q3: 21.71%
AMAT: 16.48%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

AVGO: 32.44%
TSM: 24.46%
AMAT: 16.48%
NVDA: 3.54%
MU: 0.71%
SKHY: 0.00%
AMD: 0.00%

Where Applied Materials (AMAT) stands on payout ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
Dividend Yield (TTM)	0.62%	0.00%
Dividend Payout Ratio (TTM)	16.48%	0.00%

Valuation

P/E Ratio (TTM)

Applied Materials (AMAT) trades at P/E ratio of 28.71, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

AMAT

Semiconductors & Semiconductor Equipment industry group

28.71

Group distribution

Max: 110.34
Q3: 66.81
Median: 37.02
AMAT: 28.71
Q1: 23.96
Min: 8.12

Largest peers

AMD: 95.95
AVGO: 37.51
AMAT: 28.71
TSM: 24.33
NVDA: 23.60
MU: 9.28
SKHY: 8.12

Where Applied Materials (AMAT) stands on P/E ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Applied Materials (AMAT) trades at 8.56 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

AMAT

Semiconductors & Semiconductor Equipment industry group

8.56

Group distribution

Max: 21.42
Q3: 12.27
AMAT: 8.56
Median: 5.76
Q1: 2.73
Min: 0.00

Largest peers

AMD: 16.21
AVGO: 15.73
NVDA: 14.88
AMAT: 8.56
MU: 5.86
TSM: 0.39
SKHY: 0.00

Where Applied Materials (AMAT) stands on P/S ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Applied Materials (AMAT) trades at 10.30 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

AMAT

Semiconductors & Semiconductor Equipment industry group

10.30

Group distribution

Max: 14.06
AMAT: 10.30
Q3: 7.44
Median: 4.29
Q1: 2.30
Min: 0.20

Largest peers

TSM: 71.65
NVDA: 19.68
AVGO: 14.06
AMD: 10.77
AMAT: 10.30
MU: 5.64
SKHY: 3.95

Where Applied Materials (AMAT) stands on P/B ratio within its Semiconductors & Semiconductor Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Applied Materials (AMAT) metric values compared with Semiconductors & Semiconductor Equipment industry-group medians
Metric	Current stock: AMAT	Industry group median
P/E Ratio (TTM)	28.71	37.02
P/S Ratio (TTM)	8.56	5.76
P/B Ratio (MRQ)	10.30	4.29
Free Cash Flow Yield (TTM)	1.16%	1.46%