Applied Materials, Inc. reported a net profit margin of 29.31%, according to Insider Monkey. The company ranks among the 12 most profitable American stocks to buy in 2026, reflecting significant performance in the semiconductor sector.
What happened
Applied Materials, Inc. (NASDAQ:AMAT) has been recognized as one of the most profitable stocks in 2026, achieving a net profit margin of 29.31%. Recently, UBS analyst Timothy Arcuri raised the price recommendation on the company’s stock from $515 to $570, maintaining a ‘Buy’ rating.[2]
Barclays followed suit the next day, increasing its price target on Applied Materials by $90 while keeping an ‘Overweight’ rating. The company recently reported record earnings and revenue, boasting the highest gross margin in over 25 years. Applied Materials anticipates growth exceeding 30% in its semiconductor equipment sector this year.[3]
“Applied Materials, Inc. was the Fund’s top performer in the quarter thanks to an excellent quarterly earnings print,” according to Guinness Global Innovators.
For the upcoming third quarter, Applied Materials targets revenue of $8.95 billion, with a variance of $500 million, and an adjusted EPS of $3.36, with a variance of $0.20.
Why it matters
The strong profit margins and aggressive growth estimates illustrate Applied Materials’ pivotal role in the semiconductor industry, especially amid rising demand for advanced technologies, including artificial intelligence. Investors closely monitor companies like Applied Materials that lead in manufacturing processes, given their influence on the broader technology landscape.[1]
With a projected revenue increase driven by substantial customer orders, the company’s performance is essential for those tracking tech sector investments. Such growth reflects not only the company’s status but also its potential impact on market dynamics.
Background
On June 10, 2026, UBS upgraded its projections for Applied Materials, reflecting growing investor confidence. Following that adjustment, Barclays also raised its forecast, indicating a wider consensus on the company’s strong performance.
In the first quarter of 2026, Guinness Global Innovators highlighted the company’s significant growth trajectory in its investor letter, illustrating Applied Materials’ robust positioning in advanced packaging manufacturing despite minor year-on-year revenue declines.
What’s next
Applied Materials will report its third-quarter earnings on August 15, 2026, which will provide further insights into the company’s revenue projections and market performance.
