AMAT Stock Forecast: Navigating the Future of Semiconductor Leadership

Zheman ZhongThis AMAT Stock Analysis article was written by Zheman Zhong – Financial Analyst at I Know First.


  • Applied Materials Inc. boasts robust profitability metrics, significantly outperforming industry medians in ROE, ROA, and ROIC
  • Despite a comparative lag in growth rate, AMAT maintains a solid upward revenue trend and a strong market position in semiconductor equipment manufacturing.
  • Financial ratios indicate AMAT's stock may be undervalued, presenting potential investment opportunities based on earnings and cash flow capabilities.
  • AMAT's strategic focus on innovation and customer relationships positions the company for sustained growth within the expanding semiconductor industry.

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AMAT Stock Forecast For 2019



This article was written by Vladimir Mazepa, a Financial Analyst at I Know First.

[Source: Wikimedia]


  • From technical perspective AMAT shows an opportunity to buy stock with a reasonable discount, where it is traded with a 38% discount from the last peak in March 2018.
  • Financially AMAT is undervalued among its peers and trading at 11.82 Price to Earnings ratio, compared to 17.61 in the industry. Price/Book is a bit higher than average in the industry (4.81) and Price to Sales 2.27 and are lower than the average industry 3.42.
  • AMAT generates stable positive Free Cash Flow
  • Operating Margin is quite good for semiconductor industry with almost about 30%, which helps the company manage the possible problems in the future.
  • Applied Materials invests in good projects by showing excellent Return on Equity – 40.93%, Assets – 17.82%, Capital – 25.26%.
  • AMAT boosts its dividend to $0.20 from $0.10 per share with a yield at 2.1%