Is Applied Materials (AMAT) A Good Stock to Buy Now?

Applied Materials, Inc. (NASDAQ:AMAT) rose more than 17% in May 2026, driven by record-breaking FQ2 2026 earnings and growing AI-driven demand. The stock was held by 138 hedge funds in Q1 2026, and 32 out of 40 analysts covering the stock maintain a Buy rating. Applied Materials, Inc. (NASDAQ:AMAT) is also among our Good Stocks to Invest in Now.

​During the fiscal Q2 2026 earnings, the company delivered record revenue of $7.91 billion, reflecting 11% year-over-year increase and exceeding the expectations of $7.69 billion. The non-GAAP adjusted EPS also reached a record high of $2.86, topping the consensus by 6.5%. The performance was driven by value-based pricing and the market shift towards leading-edge foundry logic, DRAM, and advanced packaging, which now fuel over 80% of growth.

​Moreover, recently, on May 26, Applied Materials, Inc. (NASDAQ:AMAT) also announced partnering with SCREEN Semiconductor Solutions as SCREEN joins EPIC Center in Silicon Valley as a new innovation partner. Both companies are expected to join expertise to develop advanced chip manufacturing solutions.

Management noted that as semiconductors grow more complex, wafer surface cleanliness has become critical to yield, performance, and reliability. To cater to this, Applied Materials will combine its expertise in deposition, dry etch, and materials modification with SCREEN’s industry-leading wafer cleaning, wet etch, and surface preparation capabilities. The companies aim to deliver end-to-end, co-optimized process solutions that help chipmakers achieve higher yields and faster production timelines.

Applied Materials, Inc. (NASDAQ:AMAT) is a materials engineering solutions company that provides equipment, software, and services to the semiconductor, display, and related industries. The company operates through its Semiconductor Systems and Applied Global Services (AGS) segments.

While we acknowledge the risk and potential of AMAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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