With a market cap of $366.4 billion, Applied Materials, Inc. (AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. The Santa Clara, California-based company operates through three segments: Semiconductor Systems; Applied Global Services; and Display and Adjacent Markets, enhancing device performance and efficiency.
Companies valued at $200 billion or more are generally considered “mega-cap” stocks, and Applied Materials fits this criterion perfectly. Applied Materials is renowned as the world’s second-largest semiconductor equipment supplier, with advanced expertise in manufacturing technologies that drive innovation in chip fabrication and display production.
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Shares of the semiconductor equipment company have pulled back 38.2% from its 52-week high of $739.67. The stock is up 1.1% over the past three months, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 4.3% rise in the same period.
Shares of Applied Materials have surged 77.1% on a YTD basis over the same time frame, surpassing DOWI’s 10.7% return. Also, the stock has jumped 175.3% over the past 52 weeks, compared to Dow Jones’ 16.6% gain.
AMAT stock has been trading above its 50-day and 200-day moving averages since last year.
Applied Materials has significantly outperformed over the past year as AI-driven semiconductor investment has boosted demand for its advanced wafer fabrication equipment, particularly for HBM/DRAM memory and leading-edge logic chips. The company has also benefited from expanding margins, strong operational execution, and a growing high-margin services business.
The company reported Q3 2026 results on Aug. 13, with revenue of $9.12 billion, up 25% and above the estimate, driven by strong demand for semiconductor manufacturing equipment linked to AI chips. It forecast better-than-expected Q4 revenue of about $10.25 billion ± $500 million and adjusted EPS of $4.02 ± $0.20. Applied Materials also raised its 2026 packaging-revenue growth outlook to more than 70%, while expecting strong second-half growth in DRAM, leading-edge foundry-logic and advanced packaging, with customer visibility extending to 2030.
