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Upturn AI SWOT - About
AMAT 
Applied Materials Inc (AMAT)
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Upturn Advisory Summary
04/01/2025: AMAT (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 5.58% | Avg. Invested days 46 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 118.34B USD | Price to earnings Ratio 19.04 | 1Y Target Price 206.32 |
Price to earnings Ratio 19.04 | 1Y Target Price 206.32 | ||
Volume (30-day avg) 6970090 | Beta 1.62 | 52 Weeks Range 141.16 - 254.22 | Updated Date 04/1/2025 |
52 Weeks Range 141.16 - 254.22 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 1.27% | Basic EPS (TTM) 7.65 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 22.95% | Operating Margin (TTM) 30.35% |
Management Effectiveness
Return on Assets (TTM) 15.56% | Return on Equity (TTM) 35.19% |
Valuation
Trailing PE 19.04 | Forward PE 15.65 | Enterprise Value 116715134976 | Price to Sales(TTM) 4.27 |
Enterprise Value 116715134976 | Price to Sales(TTM) 4.27 | ||
Enterprise Value to Revenue 4.21 | Enterprise Value to EBITDA 13.47 | Shares Outstanding 812441024 | Shares Floating 809329201 |
Shares Outstanding 812441024 | Shares Floating 809329201 | ||
Percent Insiders 0.27 | Percent Institutions 84.11 |
Analyst Ratings
Rating 4.11 | Target Price 211.98 | Buy 6 | Strong Buy 19 |
Buy 6 | Strong Buy 19 | ||
Hold 12 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Applied Materials Inc
Company Overview
History and Background
Applied Materials was founded in 1967. Initially, it focused on chemical vapor deposition (CVD) systems. Over time, it expanded into other areas of semiconductor manufacturing, becoming a leading supplier of equipment, services, and software to the semiconductor, display, and related industries.
Core Business Areas
- Semiconductor Systems: Provides equipment used in the fabrication of semiconductor chips. Includes deposition, etch, metrology, and inspection systems.
- Applied Global Services: Offers services to optimize equipment performance and productivity. Includes spare parts, upgrades, training, and consulting.
- Display and Adjacent Markets: Provides equipment for manufacturing displays, including LCD, OLED, and other display technologies. Also includes equipment for adjacent markets such as solar and packaging.
Leadership and Structure
Gary E. Dickerson is the President and CEO. The company has a typical corporate structure with a board of directors and various executive leadership roles overseeing different business units and functions.
Top Products and Market Share
Key Offerings
- Etch Systems: Equipment used to remove material from a wafer during the chip manufacturing process. Competitors include Lam Research, Tokyo Electron. AMAT holds a significant share in the Dielectric Etch market.
- Deposition Systems: Equipment used to deposit thin films onto wafers during the chip manufacturing process. Competitors include Lam Research, Tokyo Electron. AMAT holds a significant share in the PVD market.
- Metrology and Inspection Systems: Equipment used to measure and inspect wafers during the chip manufacturing process to ensure quality and identify defects. Competitors include KLA Corporation, ASML.
Market Dynamics
Industry Overview
The semiconductor equipment industry is cyclical, driven by demand for semiconductors in various end markets. Technology advancements and increasing complexity of chip manufacturing are key factors.
Positioning
Applied Materials is a leading supplier of semiconductor equipment, known for its broad product portfolio and strong customer relationships. Its competitive advantage lies in its technology leadership and global presence.
Total Addressable Market (TAM)
The semiconductor equipment TAM is estimated at hundreds of billions of USD annually. Applied Materials is positioned to capture a significant portion of this TAM with its diverse offerings and technological innovations.
Upturn SWOT Analysis
Strengths
- Technological leadership
- Broad product portfolio
- Strong customer relationships
- Global presence
- Strong R&D capabilities
Weaknesses
- Cyclical business
- Dependence on semiconductor industry
- Exposure to global economic conditions
- Customer concentration
Opportunities
- Growth in AI and machine learning
- Expansion of IoT
- Increasing complexity of chip manufacturing
- Growth in electric vehicles
- Advanced Packaging
Threats
- Economic downturns
- Increased competition
- Geopolitical risks
- Trade restrictions
- Technology obsolescence
Competitors and Market Share
Key Competitors
- LAM
- ASML
- TEL
Competitive Landscape
Applied Materials competes with a few large players in the semiconductor equipment industry. It differentiates itself through its broad product portfolio, technology leadership, and global presence.
Major Acquisitions
Varian Semiconductor Equipment
- Year: 2011
- Acquisition Price (USD millions): 4900
- Strategic Rationale: Expanded Applied Materials' capabilities in ion implantation, a critical step in semiconductor manufacturing.
Growth Trajectory and Initiatives
Historical Growth: Applied Materials has experienced significant growth over the past decade, driven by increasing demand for semiconductors.
Future Projections: Analysts project continued growth for Applied Materials, driven by trends such as AI, IoT, and 5G.
Recent Initiatives: Recent initiatives include investments in R&D, acquisitions, and partnerships to expand its product portfolio and market reach.
Summary
Applied Materials is a dominant player in the semiconductor equipment industry with a strong track record of innovation and growth. The cyclical nature of the industry and increasing competition are key factors to watch. AMAT is well-positioned to benefit from long-term trends in the industry such as AI, IoT, and 5G. They continue to execute on strategy to diversify into adjascent areas such as advanced packaging.
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ASML
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ASML
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KLAC
KLA-Tencor Corporation
KLAC
KLA-Tencor Corporation
TEL
TE Connectivity Ltd
TEL
TE Connectivity Ltd
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Analyst Reports
- Industry Research Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Applied Materials Inc
Exchange NASDAQ | Headquaters Santa Clara, CA, United States | ||
IPO Launch date 1972-10-05 | President, CEO & Executive Director Mr. Gary E. Dickerson | ||
Sector Technology | Industry Semiconductor Equipment & Materials | Full time employees 36000 | Website https://www.appliedmaterials.com |
Full time employees 36000 | Website https://www.appliedmaterials.com | ||
Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display. The Semiconductor Systems segment develops, manufactures, and sells semiconductor capital equipment that is used to fabricate semiconductor chips or integrated circuits. The Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and other equipment and factory automation software for semiconductor, display, and other products. The Display segment offers products for manufacturing liquid crystal displays; organic light-emitting diodes; and other display technologies for TVs, monitors, laptops, personal computers, smart phones, and other consumer-oriented devices and solar energy cells. It operates in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company was incorporated in 1967 and is headquartered in Santa Clara, California.
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