Applied Materials provides equipment, software, and services for materials engineering used in semiconductor and display manufacturing. Their systems modify materials at atomic scale to enable etching, deposition, inspection, and process control across chip and display fabrication. It differentiates itself by offering end-to-end hardware, software, and services that support customers from process development to high-volume production in both markets, backed by long-standing relationships with major tech firms. Its goal is to help customers turn scientific possibilities into mass-produced, advanced electronic devices.
Company Size
10,001+
Company Stage
IPO
Headquarters
Santa Clara, California
Founded
1967
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Applied Materials stock trades at 39.5 times adjusted earnings for the past twelve months, despite sales growth of just 7.8% over the period. The price leans on forecasts that sales will rise 36.3% between fiscal 2026 and fiscal 2027, with profit growing 40.0%. Net margin is expected to widen from 27% in fiscal 2025 to 31% in fiscal 2027. On those estimates, the stock costs 38.7 times fiscal 2026 profit and 27.7 times fiscal 2027 profit. Sales growth reached 24.8% in the most recent quarter, up from declines earlier in the year. Management said clean room space at customers' factories will limit shipments in 2027, and costs could squeeze margins. The company presents to investors on October 13, 2026, at SEMICON West.
Applied Materials chief executive officer Gary Dickerson called AI the biggest economic "inflection" point of our lifetime. He spoke about the company's $5 billion EPIC Center in Silicon Valley, its research into next-generation chips, and surging demand for AI chips. Dickerson made the remarks on "The Claman Countdown.
Applied Materials unveiled its Equipment and Process Innovation and Commercialization (EPIC) Center in Sunnyvale, California, on October 12, 2026. The $5 billion facility is billed as the world's largest dedicated to collaborative semiconductor process technology and equipment R&D. Chipmakers, systems companies, equipment partners and universities will work alongside Applied's engineers. Founding partners are TSMC, Intel, Samsung Electronics, Micron and SK hynix. Broadcom, Advantest, SCREEN, KIOXIA and Besi join as innovation partners, along with five research universities. The 600,000-square-foot building holds nearly four acres of cleanroom space. It aims to remove the handoffs between materials research, equipment development and pilot production, speeding new chip technologies to volume manufacturing for the AI era. Applied expects capital spending to scale to about $5 billion as customer projects begin.
Applied Materials and SK Hynix both sit at the heart of the AI chip boom, but a comparison of the two favours the memory maker for 2026. SK Hynix leads on growth, valuation and recent profitability. In fiscal 2025, SK Hynix revenue rose about 46.8% to nearly $72.5 billion, with net income near $32.1 billion. Applied Materials posted revenue of nearly $28.4 billion, up about 4.4%, and net income of about $7.0 billion. SK Hynix trades at a forward price-to-earnings ratio of 7x, against 41x for Applied Materials. Its operating margin has topped 50% in recent quarters. Risks differ. Applied Materials faces export controls and settled a $252 million penalty over unauthorised exports. SK Hynix faces volatile memory prices and rivals Samsung Electronics and Micron Technology.
Simply Wall St has picked three stocks from its quality screener, which surfaced 25 businesses with strong balance sheets and profitability: NVIDIA, Applied Materials, and Palantir Technologies. The screen follows Big Tech's plan to spend about $700 billion on AI this year. NVIDIA, valued near $5.5 trillion, earns about $275.4 billion from Compute & Networking and $27.6 billion from Graphics. Applied Materials, worth about $402.4 billion, makes $22.4 billion from Semiconductor Systems and $7.2 billion from services. Palantir, valued near $502.4 billion, draws about $3.2 billion from government clients and $2.9 billion from commercial customers. It has no debt and large cash reserves.