Applied Materials Is Firing On All Cylinders

Applied Materials, Inc. delivered record Q3 results, with 25% year-over-year revenue growth and strong margin expansion. Adjusted EPS reached $3.50, up 41% year-over-year, and management guided Q4 revenue and EPS well above consensus, but the outlook was key. AMAT benefits from robust AI infrastructure demand, advanced packaging, and strong customer spending in logic and memory segments, and if this continues is debated. We view AMAT stock as a Buy, especially sub-$500, given ongoing execution, cash flow growth, and raised 2026 outlook for >30% semiconductor systems growth.