Applied Materials: The Selloff Is Ignoring The AI Equipment Boom

Applied Materials, Inc. delivered a record Q3 with $9.12B in revenue, 25% YoY growth, and strong margin expansion, reinforcing the AI infrastructure thesis. Q4 guidance of $10.25B revenue and $4.02 EPS surpassed consensus, highlighting robust demand visibility and continued momentum in AI-driven equipment spending. Semiconductor Systems led performance, with 27% YoY revenue growth and management projecting advanced packaging revenue up over 70% in calendar 2026. I rate AMAT a Strong Buy post-selloff, citing superior execution, multi-year demand visibility, margin strength, and strategic positioning in AI manufacturing bottlenecks.

Applied Materials, Inc. ( AMAT ) has just delivered the kind of quarter that should've strengthened the AI infrastructure thesis. Revenue grew again, margins rose, free cash flow grew, and Q4 guidance came in better than Wall Street.