AMAT · NASDAQ · STOCK
Applied Materials (AMAT) Stock Analysis
$484.51
52W $154.47 – $739.67
56/100
$390.88B
42.2
1.62
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is AMAT Bullish or Bearish?
Bullish.
Innellis AI committee rates Applied Materials (AMAT) Buy with a composite score of 56/100
, based on 6 analysts with 50% agreement.
Last updated August 24, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +19.40 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 — -0.60 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. Risk Analyst remains cautious — bollinger bandwidth of 20.6% signals elevated volatility. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 39.8% 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
- News sentiment is positive (+0.20 across 174 articles, 14d) — News
Bear Case
- P/E of 45.8 is expensive by classic value standards — Value
- Price-to-book of 9.0x prices in significant intangible value — Value
- MACD histogram negative -- bearish momentum — Technical
- Bollinger bandwidth of 20.6% 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 August 24, 2026
Overall Committee Score
56/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 69%
of 287 Technology peers
Value Analyst
neutral
49
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 39.8% shows genuine earnings power backing the valuation
− P/E of 45.8 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
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 20.6% 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
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 174 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
Investment Thesis Evolution
Committee score moved marginally from 55.6 to 55.6.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
Comparing 2026-08-23 to 2026-08-24 (1 day apart).
Technical Analysis
RSI (14)
38.4
Neutral
MACD Histogram
-2.271
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Hh Hl
Support
$203.51
Resistance
$739.60
Bollinger %B
0.29
Inside Bands
Price vs Moving Averages
EMA 9
$510.32
Below
EMA 21
$522.08
Below
EMA 50
$524.56
Below
EMA 200
$417.77
Above
Fundamental Analysis
Valuation
32
Growth
80
Profitability
93
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
42.2×
P/B Ratio
15.25×
PEG Ratio
1.10
Dividend Yield
0.40%
52W High
$739.67
52W Low
$154.47
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 42.2 (rich relative to a 15-40x range); Price-to-book of 15.3x; 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 1.3%; 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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