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Applied Materials (Nasdaq: AMAT): Positioned at the Core of the AI-Driven Semiconductor Capex Cycle

Founder, CEO, GSBR Research

Garvit Bhandari

Founder, CEO

Equity Bottom-Up

<ul>
<li>Applied Materials is valued at $431 fair value, derived from a 30.7x FY27E P/E on $14.04 EPS.</li>
<li>Current valuation implies a discount to large-cap peers despite comparable growth, margins, and capital returns, suggesting scope for re-rating as AI-led capex accelerates through FY26–27</li>
<li>Forecast revenue growth of 11.6% FY26E and 18.2% FY27E, alongside margin expansion and share count reduction.</li>
</ul>


Applied Materials is valued at $431 fair value, derived from a 30.7x FY27E P/E on $14.04 EPS.
Current valuation implies a discount to large-cap peers despite comparable growth, margins, and capital returns, suggesting scope for re-rating as AI-led capex accelerates through FY26–27
Forecast revenue growth of 11.6% FY26E and 18.2% FY27E, alongside margin expansion and share count reduction.


Applied Materials (Nasdaq: AMAT): Valuation Analysis Suggests Fair Value Near $431