Added to YB: 2026-03-17
Pitch date: 2026-03-14
AMAT [neutral]
Applied Materials, Inc.
-0.44%
current return
Author Info
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Company Info
Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally.
Market Cap
$271.0B
Pitch Price
$347.70
Price Target
N/A
Dividend
0.54%
EV/EBITDA
30.34
P/E
34.98
EV/Sales
9.56
Sector
Semiconductors and Semiconductor Equipment
Category
N/A
Applied Materials - Sprinting Toward a Margin Cliff
AMAT (sell): Quality score 5.2/10, moat score 5.8/10. Operating margin collapsed 5.6pts YoY (33.4%→27.8%) as China revenue dropped 37%→30% due to trade restrictions. Low-margin Taiwan sales replacing high-margin China business. Inventories surged to $6B (order delays). Mgmt hiked dividend 15% despite margin pressure, plans 80-100% FCF return vs 14.9% historical growth. Market prices 25.2% growth—unrealistic. Sell.
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