At a glance
Applied Materials Inc is worth $297.23B, about 43 times its fiscal 2025 earnings. Revenue grew 4.4% to $28.37B in fiscal 2025, with 24.7% kept as profit; over 5 years it has grown 10.5% a year. It pays a 0.53% dividend yield, raised every year for at least 8 years, and returned $26.02B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +61.6% over the past year with dividends reinvested and +22.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 43.6% in the 2020 crash (S&P 500: 33.7%) and 54.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 15 months after the lows.
The business in plain English
Applied Materials makes the equipment chipmakers use to manufacture semiconductors. Its tools help build the microscopic transistors and wiring on silicon wafers, inspect wafers for defects, and package several chips together. Its customers are chipmakers in three areas. Foundry and logic covers contract manufacturers and processor makers. DRAM makes working memory, and NAND flash makes storage memory. Their chips end up in phones, PCs, AI and data center servers, cars and industrial equipment. Applied sells almost entirely through its own direct sales force.
Revenue was $28.4 billion in fiscal 2025, which ended October 26, 2025. The Semiconductor Systems segment, which sells chipmaking equipment, brought in 73.3%. Applied Global Services brought in 22.5%. It sells services, spare parts and factory automation software for the large base of Applied tools already installed in customers' factories. Through fiscal 2025 it also sold equipment that handles 200mm wafers, used for less advanced chips. A display equipment business is reported separately. Order backlog (orders accepted but not yet counted as revenue) was $15.0 billion at fiscal year-end.
Sales are concentrated by country and by customer. In fiscal 2025, China was the largest market at 30.1% of revenue, followed by Taiwan at 24.2%, South Korea at 19.8%, the United States at 10.8% and Japan at 8%. Two customers alone accounted for about 19% and 15% of revenue.
Price history
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AMAT +61.6% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Semiconductor Systems | $20.80B | 73.3% |
| Applied Global Services | $6.38B | 22.5% |
By geography
| CHINA | $8.53B | 30.1% |
| TAIWAN | $6.86B | 24.2% |
| KOREA, REPUBLIC OF | $5.61B | 19.8% |
| UNITED STATES | $3.06B | 10.8% |
| JAPAN | $2.27B | 8% |
| Southeast Asia | $1.08B | 3.8% |
| Europe | $962.0M | 3.4% |
Latest results
- In Q3 FY2026 (ended Jul 26, 2026), revenue was $9.12B, up 24.8% from a year earlier, and net income was $2.54B (+42.7%).
- For fiscal 2025, revenue was $28.37B (+4.4% year over year; +10.5% a year from FY2020 to FY2025) with a 24.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +10.5% good |
|---|---|
| Operating margin | 29.2% good |
| Free cash flow margin | 20.1% good |
| Return on equity (FY2025) | 34.3% good |
| Return on assets (FY2025) | 19.3% good |
| Net cash (cash minus debt) | $6.76B good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $17.20B | $3.62B | $3.38B |
| FY2021 | $23.06B | $5.89B | $4.77B |
| FY2022 | $25.79B | $6.53B | $4.61B |
| FY2023 | $26.52B | $6.86B | $7.59B |
| FY2024 | $27.18B | $7.18B | $7.49B |
| FY2025 | $28.37B | $7.00B | $5.70B |
Valuation snapshot
| Market value | $297.23B |
|---|---|
| P/E ratio | 43.2 |
| Dividend yield | 0.53% |
Rank among 1514 US companies
Market value at each year end
Applied Materials’s market value went from $34.74B at the end of 2016 to $297.23B on Nov 2, 2026, about 8.6 times as much; since the end of 2025 it is up 46%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $297.23B | +45.9% |
| 2025 | $203.78B | +54.0% |
| 2024 | $132.33B | -1.8% |
| 2023 | $134.69B | +63.9% |
| 2022 | $82.20B | -41.2% |
| 2021 | $139.82B | +77.2% |
| 2020 | $78.91B | +41.2% |
| 2019 | $55.87B | +78.0% |
| 2018 | $31.38B | -41.9% |
| 2017 | $54.00B | +55.4% |
| 2016 | $34.74B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| AMAT price data to Nov 2, 2026 | +46.3% | +61.6% | +40.4% | +22.6% | +30.7% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +46.3% |
| 2025 | +59.6% |
| 2024 | +1.1% |
| 2023 | +68.0% |
| 2022 | -37.5% |
| 2021 | +83.6% |
| 2020 | +43.3% |
| 2019 | +89.9% |
| 2018 | -34.9% |
| 2017 | +59.9% |
| 2016 | +75.7% |
| 2015 | -23.5% |
| 2014 | +43.7% |
| 2013 | +58.6% |
| 2012 | +10.2% |
| 2011 | -21.9% |
| 2010 | +3.1% |
| 2009 | +40.5% |
| 2008 | -42.1% |
| 2007 | -2.6% |
| 2006 | +3.9% |
| 2005 | +5.5% |
| 2004 | -23.8% |
| 2003 | +72.2% |
| 2002 | -35.0% |
| 2001 | +5.0% |
| 2000 | -39.7% |
| 1999 | +196.8% |
| 1998 | +41.7% |
| 1997 | +67.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 57.4% over that stretch · deepest drop along the way 61.7%, back to its old high 62.8 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 40.4% over that stretch · deepest drop along the way 43.6%, back to its old high 4.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 52.1% over that stretch · deepest drop along the way 54.2%, back to its old high 14.5 months after the low |
Insider activity
Form 4 filings from 2025-10-28 to 2026-10-28 (25 read): 0 open-market purchases and 37 sales ($174.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 29, 2026 | Gary E Dickerson President and CEO, Director | sell | $35.2M |
| Jun 30, 2026 | Gary E Dickerson President and CEO, Director | sell | $14.7M |
| Jun 4, 2026 | Prabu G. Raja President, Semi. Products Grp. | sell | $12.8M |
| Jun 16, 2026 | Gary E Dickerson President and CEO, Director | sell | $9.3M |
| Jun 16, 2026 | Gary E Dickerson President and CEO, Director | sell | $8.1M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.49% | Mar 31, 2026 |
ETFs with the most weight in AMAT
| FTXL First Trust Nasdaq Semiconductor ETF | 8.66% |
| PSI Invesco Semiconductors ETF | 5.52% |
| DUSA Davis Select U.S. Equity ETF | 4.83% |
| BULD Pacer BlueStar Engineering the Future ETF | 4.8% |
| SMH VanEck Semiconductor ETF | 4.78% |
| SHOC Strive U.S. Semiconductor ETF | 4.78% |
| TINY ProShares Nanotechnology ETF | 4.54% |
| NXTE AXS Green Alpha ETF | 4.49% |
What could go wrong
- Heavy reliance on China and export rules. China supplied 30.1% of fiscal 2025 revenue. US export controls restrict some sales there and may help non-US rivals, while Chinese government incentives and funding could strengthen local equipment competitors.
- A handful of customers drive sales. Two customers accounted for about 19% and 15% of fiscal 2025 revenue. If either delays a factory project, cuts spending or shifts orders to a rival, results could fall sharply.
- Chip spending swings between booms and busts. Chipmakers buy equipment in waves tied to chip demand and factory capacity. AI is a significant demand driver, but the company says AI spending is hard to forecast, so orders can drop quickly.
- Tariffs, trade disputes and geopolitical tension. About 89% of fiscal 2025 revenue came from customers outside the US, largely in China, Taiwan and South Korea. Tariffs, trade disputes, conflict or policies favoring local companies could disrupt sales and supply.
- Falling behind in fast-changing technology. Chipmaking changes fast, and a new approach can quickly reduce the value of existing tools. Applied must keep spending heavily on research, even in downturns, and correctly predict which technologies customers adopt.
- Single-source parts and supply chain disruptions. Some key parts come from only one or a few qualified suppliers. Shortages, factory problems or poor demand forecasts could delay shipments, raise costs or leave the company with excess inventory.
Recent events
- Other company announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Investor presentation or announcement; Other company announcement
- Quarterly results released
For income and retirement investors
Applied Materials pays a small dividend. The yield was 0.5% as of October 27, 2026. Dividends per share rose for 8 straight fiscal years through fiscal 2025, from $0.87 in fiscal 2020 to $1.78, growing about 15.4% a year. The fiscal 2025 dividend used only 19.8% of earnings and 24.3% of free cash flow (cash left after capital spending). Buybacks matter more: $20.8 billion in fiscal 2021–2025, against $5.3 billion in dividends. The share count fell 12.1% between August 2021 and July 2026.
For income investors, the dividend provides little cash, so returns depend mostly on a volatile share price. The stock fell 61.7% in the 2008 financial crisis and did not regain its peak until February 2014. It dropped 43.6% in the 2020 COVID crash and recovered in under 5 months. In the 2022 bear market it fell 54.2% and recovered by December 2023. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Applied Materials make money?
Applied Materials makes money mainly by selling the equipment chipmakers use to manufacture semiconductors. In fiscal 2025, which ended October 26, 2025, its Semiconductor Systems segment brought in 73.3% of $28.4 billion in revenue. Applied Global Services added 22.5% from services, spare parts and factory automation software for tools already installed in customers' factories. A smaller display equipment business is reported separately. Its customers are foundries, logic chipmakers and memory makers, mostly in Asia.
Does Applied Materials raise its dividend every year?
So far, yes. Dividends per share rose for 8 straight fiscal years through fiscal 2025, reaching $1.78, up from $0.87 in fiscal 2020. That is about 15.4% a year. The fiscal 2025 dividend used only 19.8% of earnings. But the yield was small, 0.5% as of October 27, 2026, and the company spends far more on buybacks. Its 10-K also warns that it may not continue to declare dividends or repurchase shares.
How much of Applied Materials' revenue comes from China?
About 30%. China supplied $8.5 billion, or 30.1%, of Applied Materials' fiscal 2025 revenue, making it the largest market. Taiwan followed at 24.2% and South Korea at 19.8%, while the United States was 10.8%. That China exposure carries policy risk. US export controls restrict sales of certain technologies to Chinese customers. The company also says it could face more competition from Chinese equipment makers backed by local government incentives and funding.
Is Applied Materials stock volatile?
Yes. Its beta, a measure of how much a stock tends to move compared with the overall market, was 2.67 for the year to October 27, 2026. Its annualized volatility, a gauge of price swings, was 60.3%. The shares fell 18.4% in the month to that date, though they were still up 54.6% for 2026 through that date. Over about 30 years of price history, the worst peak-to-trough drop was 85.2%. Over the 10 years to October 27, 2026, the share price rose an average of 31.3% a year.
Is Applied Materials stock expensive?
By past earnings, it traded at a high multiple. Its price-to-earnings (P/E) ratio was 45.7 as of October 27, 2026, based on fiscal 2025 diluted earnings of $8.66 a share. Those earnings barely changed from $8.61 in fiscal 2024. Results picked up afterward: in the quarter ended July 26, 2026, revenue rose 24.8% and net income rose 42.7% from a year earlier. A high P/E leaves less room for disappointment if chip spending slows.