Applied Materials posted record revenue and earnings as AI-driven demand propelled its stock up 260% over the past year to near all-time highs. The shares trade at a 54.7 price-to-earnings ratio and 16.0 price-to-sales multiple while management forecasts over 30% growth in semiconductor equipment this year.
Applied Materials has seen unprecedented demand for its chip-manufacturing equipment driven by a global AI infrastructure build-out, sending its share price up 260% over the last year and pushing it close to its all-time high.
The stock now trades at a price-to-earnings ratio of 54.7 and a price-to-sales multiple of 16.0, more than double and nearly five times the S&P 500 averages, reflecting investor bets on sustained AI-related growth.
Management projects over 30% growth in its semiconductor equipment business this year, with leading-edge foundry logic, DRAM and advanced packaging expected to account for more than 80% of year-on-year wafer fab equipment spending increases in 2026.
Applied Materials runs an operating margin of 30.1% and a non-GAAP gross margin of 50%, its highest in over 25 years, driven by sales of high-value, differentiated equipment critical for next-generation AI hardware.
