Applied Materials, Inc. (AMAT) on Decifer

Why it ranks here

• It earns strong returns on the money it puts to work, around 22% and it turns most of its profit into real cash.
• Revenue is expected to grow about 36% a year, profits grew 0% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• AMAT is one of 5 credible suppliers of foundry and semiconductor process equipment for the thesis: The world is committing capital to AI compute and its consequences faster than to any infrastructure in history, and this reorganizes demand in nearly every sector, not just technology. This part of the story is already widely recognized by the market.

The current read

The evidence on AMAT lines up on the supportive side: a live market force supports this name through its theme connection. The independent signals we track are telling the same story.

Themes

• AI Infrastructure Buildout: Global investment in AI compute capacity is driving an unprecedented buildout across the full stack: accelerator silicon, interconnect, high-bandwidth memory and storage, the leading-edge fabs and equipment that manufacture them, and the physical data-center power, cooling and construction capacity they run in.

Read the full AMAT research brief · See all quality rankings

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