NASDAQ Shariah screener · October 2026
Is Applied Materials, Inc. (AMAT) Halal?
Applied Materials, Inc. · NASDAQ: AMAT · Technology
The short answer
Yes — Applied Materials, Inc. (AMAT) passes this Shariah stock screen. The world's largest semiconductor manufacturing equipment maker (wafer-fab tools, equipment services, display tools; Santa Clara, California) has no disclosed prohibited business lines. Its total debt of $6,544M is about 1.56% of its ~$420.1B market cap ($529.30, October 1, 2026), below the ~33% ceiling. Interest income of $297M is about 1.24% of nine-month revenue ($24,037M, per the Q3 10-Q Notes — the clean disclosed figure, not the mixed "interest and other income" line), below the 5% non-compliant income ceiling. Zoya rates AMAT Shariah-compliant and Musaffa classifies it halal; ShariaPortfolio publishes no public rating — honestly reported as absent, not invented.
Gate 1 — Business activity: PASS
Applied Materials, Inc. (NASDAQ: AMAT), headquartered in Santa Clara, California, is the world's largest maker of semiconductor manufacturing equipment. Per its filings it provides manufacturing equipment, services and software to the semiconductor, display and related industries through three reportable segments: Semiconductor Systems (wafer-fab tools — deposition, etch, inspection), Applied Global Services (equipment service, spares and fab-optimisation software) and Display and Adjacent Markets (display-fabrication tools). Customers are chip and display manufacturers; end-use markets include AI servers, mobile devices and automobiles. No prohibited lines are disclosed — no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, weapons manufacturing or adult entertainment; the only non-operating income stream is small interest income on cash and investments. Gate 1 passes. Facts only.
Gate 2 — Debt and cash: PASS
Per Applied Materials' Form 10-Q for the quarter ended July 26, 2026, total debt was $6,544M — short-term debt $1,299M plus long-term debt $5,245M on the balance sheet. Against a market cap of about $420.1B ($529.30 × 793,597,443 shares outstanding on October 1, 2026), debt ÷ market cap is about 1.56%, below the ~33% ceiling. Total cash, cash equivalents and investments of $12,900M (fair value, per the Notes) are about 3.07% of market cap. Gate 2 passes. Facts only.
Gate 3 — Non-compliant income: PASS
Applied Materials' 10-Q (Notes) reports interest income of $297M on cash, cash equivalents and fixed-income securities for the nine months ended July 26, 2026 (Q3 alone: $104M), against nine-month revenue of $24,037M — about 1.24% of revenue, below the 5% non-compliant income ceiling. The income-statement line "Interest and other income (expense), net" ($1,237M nine-month) is not used — it includes other items such as investment marks; the clean disclosed interest-income figure from the Notes is used instead. Gate 3 passes. Facts only.
Key figures used
- Business: world's largest semiconductor manufacturing equipment maker — Semiconductor Systems (wafer-fab tools), Applied Global Services (service/spares/software), Display and Adjacent Markets; Santa Clara, CA
- Total debt: $6,544M (short-term $1,299M + long-term $5,245M) at Jul 26, 2026 — debt ÷ market cap ≈ 1.56% of ~$420.1B ($529.30 × 793,597,443 shares, Oct 1, 2026), under the ~33% ceiling
- Cash: $12,900M total cash, cash equivalents and investments (fair value, Notes) ≈ 3.07% of market cap
- Interest income: $297M (9 months) vs revenue $24,037M — ≈1.24% of revenue, under the 5% ceiling ("Interest and other income (expense), net" $1,237M not used — includes investment marks)
- Zoya: Shariah-compliant (Sep 2026); Musaffa: halal (Sep 2026, AAOIFI); ShariaPortfolio: no public rating found
Frequently asked questions
What does Applied Materials do?
Applied Materials, Inc. (NASDAQ: AMAT), headquartered in Santa Clara, California, is the world's largest maker of semiconductor manufacturing equipment. Per its filings it provides manufacturing equipment, services and software to the semiconductor, display and related industries through three reportable segments: Semiconductor Systems (wafer-fab tools — deposition, etch, inspection), Applied Global Services (equipment service, spares and fab-optimisation software), and Display and Adjacent Markets (display-fabrication tools). Customers are chip and display manufacturers; end-use markets include AI servers, mobile devices and automobiles.
Why does Applied Materials pass this Shariah stock screen?
Applied Materials passes all three gates of this screen. Its business is semiconductor manufacturing equipment with no disclosed prohibited lines (no alcohol, gambling, pork, conventional banking/insurance, tobacco, cannabis, weapons manufacturing or adult entertainment) — the only non-operating income stream is small interest income on cash and investments. Total debt of $6,544M is about 1.56% of its ~$420.1B market cap, below the ~33% ceiling. Interest income of $297M (nine months) is about 1.24% of nine-month revenue ($24,037M), below the 5% non-compliant income ceiling. Zoya rates AMAT Shariah-compliant and Musaffa classifies it halal. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.
What is Applied Materials' interest-bearing debt ratio?
Per Applied Materials' Form 10-Q for the quarter ended July 26, 2026, total debt was $6,544M — short-term debt $1,299M plus long-term debt $5,245M on the balance sheet. Against a market cap of about $420.1B ($529.30 × 793,597,443 shares outstanding, October 1, 2026), debt ÷ market cap is about 1.56% — below the ~33% ceiling. Total cash, cash equivalents and investments of $12,900M (fair value, per the Notes) are about 3.07% of market cap.
What is Applied Materials' non-compliant income ratio?
Applied Materials' 10-Q (Notes) reports interest income on cash, cash equivalents and fixed-income securities of $297M for the nine months ended July 26, 2026 (Q3 alone: $104M), against nine-month revenue of $24,037M — about 1.24% of revenue, below the 5% non-compliant income ceiling. The income-statement line "Interest and other income (expense), net" ($1,237M nine-month) is not used — it includes other items such as investment marks; the clean disclosed interest-income figure from the Notes is used instead.
Do Zoya, Musaffa, or ShariaPortfolio cover Applied Materials?
Zoya covers AMAT: "As of September 2026, AMAT is Shariah-compliant and therefore considered halal to invest in" under AAOIFI methodology (zoya.finance/stocks/amat). Musaffa covers AMAT: "As of September 2026, Applied Materials Inc is classified as halal" under AAOIFI methodology (musaffa.com/stock/AMAT/), and also lists it as Halal in its Nasdaq-100 and semiconductor lists. ShariaPortfolio publishes no public per-ticker rating for AMAT — reported as absent, not invented. This page applies the screen directly from Applied Materials' own filings.
Sources
- Applied Materials — Form 10-Q, quarter ended Jul 26, 2026: business segments; balance sheet (debt $6,544M; cash & investments $12,900M; shares 793,597,443); Notes (interest income $297M nine-month); revenue $24,037M (stocktitan filing page)
- Finnhub — AMAT live quote data (price $529.30, market cap ~$420.1B, October 1, 2026)
- Zoya — Applied Materials (AMAT) stock page (Shariah-compliant, Sep 2026)
- Musaffa — Applied Materials (AMAT) stock page (halal, Sep 2026)
Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).