Applied Materials, Inc. ranks near the peer group median, with stability as the least supportive dimension. Price action is modestly ahead of the structural profile — a mild divergence, not yet a decisive signal.
Peer-relative scores, weakest to strongest
Applied Materials supplies equipment and services for semiconductor manufacturing, enabling chip production for advanced electronics.
AMAT is traded as an AI-cycle play, not a steady compounder. With operating margins at 29.7%, the business delivers sector-leading profitability, but the market’s focus on AI-driven semiconductor capex means every quarterly report functions as a referendum on the investment cycle—so 42.1% one-year volatility reflects that exposure. AMAT directly benefits from increases in AI infrastructure spending and partnerships for chip innovation, but because the market keys so tightly to capex momentum, even small demand shifts are met with outsized price reactions. The market prices AMAT on momentum and innovation narrative, not baseline stability. When the AI investment narrative weakens or a quarter disappoints, the market rapidly reprices the premium, leading to abrupt valuation compression.
Break down AMAT's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.