AMAT · NASDAQ · STOCK
Applied Materials (AMAT) Stock Analysis
$506.95
52W $203.40 – $739.67
58/100
$402.56B
43.4
1.59
Is AMAT Bullish or Bearish?
Bullish.
Innellis AI committee rates Applied Materials (AMAT) Buy with a composite score of 58/100
, based on 6 analysts with 67% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +17.32 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -2.68 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 38.4% yoy. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 40.4% shows genuine earnings power backing the valuation — Value
- EPS growing 38.4% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Price structure making higher highs and higher lows — Technical
- MACD histogram positive -- bullish momentum — Technical
Bear Case
- P/E of 43.6 is expensive by classic value standards — Value
- Price-to-book of 9.0x prices in significant intangible value — Value
- Price structure (LH_LL) contradicts the uptrend -- mixed signals — Technical
- Bollinger bandwidth of 34.8% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
58/100
Agreement
67%
Analysts
6
Conviction
Moderate
Sector Rank
Top 55%
of 287 Technology peers
Value Analyst
neutral
49
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 40.4% shows genuine earnings power backing the valuation
− P/E of 43.6 is expensive by classic value standards
Growth Analyst
bullish
72
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 38.4% YoY
Technical Analyst
bullish
63
/ 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− Price structure (LH_LL) contradicts the uptrend -- mixed signals
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 34.8% signals elevated volatility
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 57.7 to 57.7.
- New bearish signals: 2 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
Analyst-level changes:
- Risk Analyst: +1 bearish signal(s).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
51.4
Neutral
MACD Histogram
3.873
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Lh Ll
Support
$436.34
Resistance
$739.60
Bollinger %B
0.64
Inside Bands
Price vs Moving Averages
EMA 9
$512.85
Below
EMA 21
$497.92
Above
EMA 50
$494.52
Above
EMA 200
$434.88
Above
Fundamental Analysis
Valuation
31
Growth
80
Profitability
93
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
43.4×
P/B Ratio
15.71×
PEG Ratio
1.13
Dividend Yield
0.39%
52W High
$739.67
52W Low
$203.40
Quality & Growth
ROE
3427.9%
ROA
1927.9%
Gross Margin
4939.8%
Operating Margin
3050.2%
Revenue Growth YoY
—
Debt / Equity
0.29
AI Fundamental Assessment
P/E ratio of 43.4 (rich relative to a 15-40x range); Price-to-book of 15.7x; PEG ratio of 1.1 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 34.3%; Return on assets of 19.3%; Net margin of 30.1%; Gross margin of 49.4%; Current ratio of 2.42 (healthy short-term liquidity); Debt-to-equity of 0.29; Free cash flow per share is positive (7.08); Most recent quarter beat estimates by 1.1%; 5 consecutive earnings beats; EPS growth accelerating (+20.2% -> +22.4% QoQ); Average YoY EPS growth of 41.1%; Analyst estimates rising over recent quarters
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