Applied Materials (AMAT)
What the price implies
A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.
At a market value of $413.5B, Applied Materials's free cash flow of $5.7B (fiscal 2025) would need to grow about 22% a year for the stock to be worth today's price. That is faster than the company has grown its free cash flow over the last 9 years.
Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from Applied Materials's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.
Fundamental grade
Five factors scored 1 to 9 from AMAT's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.
Key numbers
Results from SEC filings
Fiscal years, from Applied Materials's 10-K filings. The deep dive has 15+ years, quarters and every line.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $23.1B | $25.8B | $26.5B | $27.2B | $28.4B |
| Net income | $5.9B | $6.5B | $6.9B | $7.2B | $7.0B |
| Free cash flow | $4.8B | $4.6B | $7.6B | $7.5B | $5.7B |
| EPS (diluted) | $6.40 | $7.44 | $8.11 | $8.61 | $8.66 |
| Operating margin | 29.9% | 30.2% | 28.9% | 28.9% | 29.2% |
Where the revenue comes from
Revenue by segments, fiscal 2025.
Superinvestors who own AMAT
From each investor's latest 13F filing (what a 13F shows). 15 of the investors we track hold it.
| Investor | Last quarter | Value | % of portfolio | Quarter |
|---|---|---|---|---|
| Philippe Laffont Coatue Management |
Trimmed | $3.0B | 6.3% | Q2 2026 |
| Chase Coleman Tiger Global Management |
Trimmed | $1.2B | 4.9% | Q2 2026 |
| Stephen Mandel Lone Pine Capital |
New position | $873M | 5.3% | Q2 2026 |
| PRIMECAP Management PRIMECAP Management Co |
Trimmed | $754M | 0.45% | Q2 2026 |
| Cliff Asness AQR Capital Management |
Added | $592M | 0.21% | Q2 2026 |
| Joel Greenblatt Gotham Asset Management |
Trimmed | $98M | 0.23% | Q2 2026 |
| Larry Robbins Glenview Capital Management |
Trimmed | $47M | 0.86% | Q2 2026 |
| Eric Marshall Hodges Capital Management |
Added | $32M | 2.1% | Q2 2026 |
| Tom Gayner Markel Group Inc. |
Held | $26M | 0.20% | Q2 2026 |
| Mario Gabelli GAMCO Investors |
Trimmed | $11M | 0.10% | Q2 2026 |
| Ron Baron Baron Capital (BAMCO) |
New position | $2M | 0.00% | Q2 2026 |
| Lee Ainslie Maverick Capital |
Trimmed | $2M | 0.02% | Q2 2026 |
Insider buying
Open-market purchases by Applied Materials's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.
| Date | Insider | Shares | Price | Value |
|---|---|---|---|---|
| Mar 10, 2026 | Ro Khanna |
0 | $345.88 | — |
| Mar 10, 2026 | Ro Khanna |
0 | $345.88 | — |
| Feb 24, 2026 | Ro Khanna |
0 | $377.93 | — |
| Feb 24, 2026 | Ro Khanna |
0 | $377.93 | — |
| Feb 19, 2026 | Ro Khanna |
0 | $369.83 | — |
| Feb 19, 2026 | Ro Khanna |
0 | $369.83 | — |
| Jan 29, 2026 | Ro Khanna |
0 | $341.34 | — |
| Jan 29, 2026 | Ro Khanna |
0 | $341.34 | — |
| Dec 29, 2025 | Markwayne Mullin |
0 | $263.05 | — |
| Dec 29, 2025 | Markwayne Mullin |
0 | $263.05 | — |
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In the full deep dive
Questions
What growth does Applied Materials's stock price imply?
At a market value of $413.5B, Applied Materials would need its free cash flow to grow about 22% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 9 years its free cash flow grew 11% a year.
Are Applied Materials insiders buying the stock?
10 open-market insider purchases of AMAT in the last 12 months, from SEC Form 4 filings.
Which superinvestors own Applied Materials?
15 of the superinvestors Investingly tracks hold AMAT in their latest 13F, including Philippe Laffont, Chase Coleman, Stephen Mandel.
Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.