Applied Materials (AMAT) Stock Analysis & Winston Score

Applied Materials makes the machines that build computer chips. Semiconductor manufacturers like TSMC, Samsung, and Intel use its equipment to deposit, etch, and inspect the ultra-thin layers that make up modern chips. It is one of the largest semiconductor equipment companies in the world, serving customers across logic, memory, and display manufacturing. The company earns revenue by selling capital equipment to chipmakers, then generating recurring income through parts, service contracts, and software. Applied Materials operates globally, with significant sales in Asia — particularly China, Taiwan, and South Korea — and generates roughly $27 billion in annual revenue. Its deep technical expertise and long customer relationships create switching costs, since chipmakers rely on Applied's tools throughout their entire manufacturing process. The biggest risk is its exposure to China, which accounts for a large share of revenue and faces ongoing US export restrictions that could limit future sales.