Is Applied Materials, Inc. AMAT stock halal to invest in?

Yes, as of August 2026, Applied Materials, Inc. stock (AMAT) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. Applied Materials, Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 98.65%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Applied Materials, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Applied Materials, Inc. AMAT reviewed for Shariah compliance?

Tabadulat reviews Applied Materials, Inc. AMAT for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Applied Materials, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Applied Materials, Inc. AMAT pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Applied Materials, Inc. stock (AMAT) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Applied Materials, Inc.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Applied Materials, Inc. AMAT pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Applied Materials, Inc. stock (AMAT) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Applied Materials, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Applied Materials, Inc. AMAT pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Applied Materials, Inc. stock (AMAT) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Applied Materials, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Applied Materials, Inc. AMAT stock?

As of August 2026, the dividend purification factor for Applied Materials, Inc. (AMAT) is 98.65%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Applied Materials, Inc. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Applied Materials, Inc. AMAT pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Applied Materials, Inc. stock (AMAT) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Applied Materials, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Applied Materials, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

AMAT

About

Applied Materials, Inc.

AMAT

Applied Materials Inc. is a leading provider of innovative equipment, services, and software for the global semiconductor industry. Specializing in the development of materials engineering solutions, the company's products play a crucial role in the production of advanced semiconductor chips, which are essential components in electronic devices. Applied Materials' equipment is widely used in the manufacturing processes for a variety of industries, including consumer electronics, computer systems, communications infrastructure, and automotive components. Notably, Applied Materials offers solutions for deposition, removal, patterning, and inspection, serving the needs of chipmakers aiming to improve performance, energy consumption, and computational power of their semiconductor devices. With a focus on cutting-edge research and development, the company continually advances the technology landscape, enabling trends like artificial intelligence, internet of things (IoT), and data center expansion. In the financial market, Applied Materials Inc. holds a significant position due to its impact on technology advancements and its partnerships with leading tech and electronics companies. Headquartered in Santa Clara, California, the company's innovations underpin the critical supply chains of the high-tech and electronics industries worldwide.

Sector:

Technology

Industry:

Semiconductor Equipment & Materials

Employees:

36500

Website:

https://www.appliedmaterials.com

AMAT

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Applied Materials, Inc.

About

Applied Materials, Inc.

AMAT

Frequently asked questions

Is Applied Materials, Inc. AMAT stock halal to invest in?

How often is Applied Materials, Inc. AMAT reviewed for Shariah compliance?

Does Applied Materials, Inc. AMAT pass the AAOIFI Non Permissible Income criteria?

Does Applied Materials, Inc. AMAT pass the AAOIFI Interest Bearing Investments criteria?

Does Applied Materials, Inc. AMAT pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Applied Materials, Inc. AMAT stock?

Does Applied Materials, Inc. AMAT pass the AAOIFI Preference Share screen?

How do I buy Applied Materials (AMAT) stock?

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