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Last updated 1 minute ago

AMAT·Applied Materials, Inc.

$.
-. (-.%)
High
$475.00
Open
$461.21
Market Cap
355.89B
52W High
$456.78
Low
$441.12
P. Close
$454.89
P/E
41.83
52W Low
$153.47
Fwd P/E
28.13
Mean Target
$509.63
Technical Score (1D)
91
BUY
News Sentiment
66
BULLISH
Mizuho Securities has raised its price target for Applied Materials to $540, signaling continued analyst confidence and setting elevated expectations for the company's performance. This move follows Applied Materials' recent announcement of a raised third-quarter revenue outlook, projecting approximately $8.95 billion, driven by robust demand and strategic expansions. The company also reported strong second-quarter results with $7.91 billion in sales and $2.81 billion in net income, underscoring its current operational strength. A key driver for this positive sentiment appears to be the expansion of Applied Materials' EPIC platform, particularly through new partnerships focused on advanced chip packaging and AI hardware development. This includes collaborations aimed at accelerating the creation of next-generation AI infrastructure. Furthermore, a deepening partnership with SCREEN Semiconductor Solutions is advancing wafer cleaning technologies, a critical step for improving yields and speeding up the commercialization of advanced semiconductors. This collaboration leverages combined expertise in materials engineering and cleaning technology to tackle complex manufacturing challenges. The ongoing efforts to co-optimize materials engineering and processing steps with SCREEN SPE aim to enhance overall semiconductor production efficiency and performance, addressing evolving industry demands. Investors will be watching how Applied Materials meets these increased targets and the continued impact of its strategic alliances on future growth.
Earnings Summary
Applied Materials, Inc. is a leading global provider of materials engineering solutions, offering essential equipment, services, and software for the semiconductor industry and related high-tech sectors. The company operates through two main segments: Semiconductor Systems, which supplies capital equipment for chip manufacturing processes, and Applied Global Services (AGS), which provides upgrades, spare parts, and automation software to enhance manufacturing productivity. Applied Materials serves a worldwide customer base, including major semiconductor manufacturers, and plays a critical role in the production of electronic devices. It is headquartered in Santa Clara, California, and operates within the Technology sector, specifically in Semiconductor Equipment & Materials. Applied Materials has demonstrated a consistent pattern of exceeding analyst expectations for both earnings per share (EPS) and revenue in its recent quarterly reports. In Q2 2026, the company reported actual EPS of $2.86, significantly surpassing the estimate of $2.68393, and revenue of $7.91 billion, exceeding the estimate of $7.823 billion. This followed a Q1 2026 where actual EPS was $2.38 against an estimate of $2.57414, and revenue was $7.012 billion against an estimate of $7.4884 billion, marking a miss on both metrics. Prior to that, Q3 2025 saw actual EPS of $2.17, beating the estimate of $2.09366, with revenue at $6.8 billion. The company also reported actual EPS of $2.48 for Q2 2025, exceeding the estimate of $2.35905, and revenue at $7.302 billion. This indicates a generally strong performance with a recent notable miss in Q1 2026, but overall positive trends in EPS and revenue growth over the period. Historically, Applied Materials has shown a strong year-over-year growth trajectory, driven by the cyclical but expanding semiconductor industry. The company has a notable history of beating analyst estimates, particularly in EPS, with consistent positive surprises in Q2 2025, Q3 2025, and Q2 2026. While Q1 2026 presented a deviation with both EPS and revenue falling short of estimates, the overall pattern suggests resilience and an ability to capitalize on market demand. The company's performance often reflects broader trends in semiconductor capital equipment spending and technological advancements. Recent news highlights both positive analyst sentiment and strategic industry collaborations for Applied Materials. Argus Research has raised its price target to $500 with a Buy rating, citing long-term growth prospects from AI chip demand and semiconductor onshoring initiatives, following a Q2 earnings beat. Applied Materials is also participating in a new $125 million UCLA AI chip hub, collaborating with major tech players to accelerate AI chip research and development. However, Morgan Stanley recently downgraded the stock to equal-weight, suggesting a strategic rotation within the sector, while still acknowledging potential market share gains for AMAT. This mixed analyst sentiment underscores the dynamic nature of the semiconductor equipment market. Looking ahead, investors will be watching for Applied Materials' ability to regain momentum following the Q1 2026 miss and capitalize on the strong demand for AI-powered chips. Key will be the company's performance in securing orders related to semiconductor onshoring initiatives and its contributions to advanced AI chip research. Investors should also monitor how the company navigates potential sector rotations and any further shifts in analyst sentiment, particularly concerning the NAND and DRAM equipment markets.

EPS

EstBeatMiss
$1.90$2.32$2.74$3.16$3.58Q1'25Q2'25Q3'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$3.38 - -
Q2'26$2.68$2.86+6.6%
Q1'26$2.57$2.38-7.5%
Q3'25$2.09$2.17+3.6%
Q2'25$2.36$2.48+5.1%
Q1'25$2.31$2.39+3.4%

Revenue

EstBeatMiss
$6.4B$7.2B$8.0B$8.7B$9.5BQ1'25Q2'25Q3'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$9.2B - -
Q2'26$7.8B$7.9B+1.1%
Q1'26$7.5B$7.0B-6.4%
Q3'25 - $6.8B -
Q2'25 - $7.3B -
Q1'25 - $7.1B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

AMAT Stock Snapshot

AMAT is currently trading at $448.77, giving Applied Materials, Inc. a market cap of 355.89B and a P/E ratio of 41.8. Today's range spans $441.12–$475.00, with shares opening at $461.21 and moving down $6.12 (1.3%) from the prior close. DailyIQ's technical score sits at 91/100 (BUY) with a news sentiment reading of 66/100.

Over the past year AMAT has traded between $153.47 and $456.78 - the current price is +192.4% off the 52-week low and -1.8% from the high. 45 analysts cover the stock with a Buy consensus and a mean 12-month target of $509.63 (range $358.00–$575.00), implying upside of +13.6%.

Short interest data on large-cap Technology names like AMAT (355.89B market cap) becomes relevant when the technical picture turns bullish - a BUY on 91/100 with bullish sentiment (66/100) is exactly the kind of setup that makes shorts nervous. Price at $448.77 (near 52-week highs in $153.47–$456.78). The current P/E ratio stands at 41.8. Short covering in a bullish technical phase can add a secondary momentum layer on top of genuine long-side conviction - a dynamic worth monitoring in the current setup.

The combination of a BUY signal (91/100) and bullish news sentiment (66/100) puts AMAT on the screens of active managers who run quality-momentum overlays — a cohort that can build meaningful positions at 355.89B in Technology market cap without immediately moving the stock. At $448.77 (near 52-week highs in the $153.47–$456.78 range), the entry discipline is clean and the potential re-rating if sentiment continues to improve is meaningful.