Applied Materials: Strong AI Compounder


  • I believe revenue and EPS growth estimates over the next year are too conservative, making AMAT stock a strong buy.
  • Applied Materials has shown strong revenue and EPS growth over the past 10 years, with revenue increasing by 353% from 2014 to 2024.
  • Consensus revenue estimates suggest continued growth, with revenue projected to increase from $26.94 billion in fiscal 2024 to $37.36 billion in fiscal 2028.
  • Despite concerns about semiconductor stocks being cyclical, Applied Materials has demonstrated consistent revenue and EPS growth, with potential for further acceleration due to the AI revolution.

Applied Materials campus in Silicon Valley

Sundry Photography

Investment Thesis

I believe Applied Materials (NASDAQ:AMAT) has demonstrated strong revenue and EPS growth and this is set to continue. Over the last 10 years, Applied Materials has seen strong revenue growth. In 2014, revenue totaled $7.51 billion; 2024

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AMAT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Noah Cox (account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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