Applied Materials Has Beaten Estimates 5 Quarters Straight. Here’s Where the Stock Could Go

Applied Materials (AMAT) is set to report its fiscal Q3 earnings, having consistently surpassed revenue and EPS estimates in recent quarters. Despite strong accounting profits driven by demand in DRAM and advanced packaging, the company has repeatedly missed free cash flow targets due to rising inventories and capital spending. The upcoming earnings report will be crucial in determining if cash flow starts to align with profits, validating the company's significant investments in capacity.