AMATNEUTRAL

Gross Margin

49.9%

Higher than 30% of Technology sector peers

Updated 1544h ago

Sector Performance

30th percentile

AMAT

49.9%

Sector Median

65.2%

Sector Avg

60.4%

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Deep Analysis

Applied Materials’ gross margin of 49.9% means that for every dollar of revenue, the company keeps roughly 50 cents after paying direct production costs.

That figure sits well below the technology sector median of 62.2%, placing AMAT in the 31st percentile among its peers—meaning roughly two-thirds of sector competitors report higher gross margins. No year-over-year or quarter-over-quarter change data are available for this metric, and the trend direction over the last eight quarters is also not provided. The combination of a gross margin that is below the sector midpoint with no trend information leaves investors without a clear signal of improving or deteriorating cost efficiency. This lack of directional evidence neither supports nor contradicts the overall NEUTRAL verdict on the stock, as the neutral stance already acknowledges balanced risk and opportunity.

Frequently Asked Questions

What does the Gross Margin tell investors about AMAT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AMAT's Gross Margin compare to its sector?

AMAT's Gross Margin of 49.9% compares to a Technology sector median of 65.2%, placing it in the 30th percentile.

Who are AMAT's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), SAP (73.0%), LIF (77.3%), OKTA (77.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.