Applied Materials (NASDAQ:AMAT) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Key Points

• Needham & Company LLC raised its price target on Applied Materials from $530 to $740 and kept a buy rating, implying about 25.7% upside from the current price.
• Other analysts have also turned more bullish, with several firms lifting targets and ratings; the stock now has a Moderate Buy consensus and an average target price of $585.61.
• Applied Materials posted strong quarterly results, beating EPS and revenue estimates, and management guided Q3 2026 EPS to 3.16–3.56 amid ongoing optimism tied to AI-driven semiconductor spending.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its price objective lifted by analysts at Needham & Company LLC from $530.00 to $740.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the manufacturing equipment provider's stock. Needham & Company LLC's price objective would indicate a potential upside of 25.71% from the stock's current price.

Several other analysts have also recently commented on AMAT. Wolfe Research upped their target price on shares of Applied Materials from $500.00 to $550.00 and gave the company an "outperform" rating in a research report on Friday, May 15th. Deutsche Bank Aktiengesellschaft raised their price target on Applied Materials from $450.00 to $550.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Zacks Research raised Applied Materials from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 1st. Citigroup upped their price objective on Applied Materials from $550.00 to $710.00 and gave the company a "buy" rating in a report on Wednesday, June 17th. Finally, Cantor Fitzgerald increased their target price on Applied Materials from $650.00 to $850.00 and gave the company an "overweight" rating in a research note on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Applied Materials has a consensus rating of "Moderate Buy" and an average target price of $585.61.

Applied Materials Stock Performance

Applied Materials stock opened at $588.66 on Friday. The company has a current ratio of 2.51, a quick ratio of 1.80 and a debt-to-equity ratio of 0.22. Applied Materials has a 1 year low of $154.46 and a 1 year high of $739.67. The company has a market cap of $467.37 billion, a PE ratio of 55.27, a PEG ratio of 1.59 and a beta of 1.57. The company's 50-day moving average is $513.50 and its two-hundred day moving average is $400.88.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 EPS for the quarter, topping the consensus estimate of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to analysts' expectations of $7.68 billion. Applied Materials had a net margin of 29.31% and a return on equity of 36.97%. Applied Materials's revenue was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.39 EPS. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. Equities analysts anticipate that Applied Materials will post 12.11 earnings per share for the current year.

Insider Activity at Applied Materials

In other news, SVP Timothy M. Deane sold 8,621 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $590.76, for a total transaction of $5,092,941.96. Following the sale, the senior vice president owned 134,631 shares of the company's stock, valued at $79,534,609.56. This trade represents a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.43, for a total value of $14,398,392.09. Following the transaction, the senior vice president owned 146,916 shares in the company, valued at $87,184,361.88. This trade represents a 14.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 278,088 shares of company stock valued at $169,654,805 over the last 90 days. Insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Stonebridge Financial Group LLC boosted its stake in Applied Materials by 2.1% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider's stock worth $725,000 after purchasing an additional 21 shares during the period. Basecamp Wealth Advisors LLC raised its stake in shares of Applied Materials by 0.7% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 3,288 shares of the manufacturing equipment provider's stock valued at $1,124,000 after purchasing an additional 22 shares during the period. Financial Management Professionals Inc. raised its stake in shares of Applied Materials by 2.2% in the 2nd quarter. Financial Management Professionals Inc. now owns 1,040 shares of the manufacturing equipment provider's stock valued at $752,000 after purchasing an additional 22 shares during the period. Elevation Wealth Partners LLC lifted its holdings in shares of Applied Materials by 34.8% in the second quarter. Elevation Wealth Partners LLC now owns 93 shares of the manufacturing equipment provider's stock valued at $67,000 after purchasing an additional 24 shares in the last quarter. Finally, Private Wealth Management Group LLC lifted its holdings in shares of Applied Materials by 4.9% in the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider's stock valued at $181,000 after purchasing an additional 25 shares in the last quarter. Institutional investors and hedge funds own 80.56% of the company's stock.

More Applied Materials News

Here are the key news stories impacting Applied Materials this week:

• Positive Sentiment: Applied Materials gained after reports that Meta plans to begin manufacturing its own AI chip in September, which lifted semiconductor equipment names on expectations for more wafer fab tool demand. Applied Materials, KLA, Lam Research Take Off on Meta’s Chip Plans
• Positive Sentiment: CEO Gary Dickerson said Applied Materials has “tremendous visibility” into demand, with chipmakers planning further ahead than usual and AI investment likely to stay elevated for years, reinforcing the bull case for continued equipment spending. Applied Materials (AMAT) Stock Jumps after CEO Says AI Chip Demand Has Years to Run
• Positive Sentiment: Broad chip-sector strength also helped AMAT, with AI and memory stocks rallying as Micron’s domestic manufacturing investment added to optimism around the semiconductor capex cycle. US stocks end higher; chip surge offsets Iran worries
• Neutral Sentiment: Some recent articles debated whether AMAT is already richly valued or “late to the AI party,” suggesting investors may continue to weigh strong demand growth against valuation risk. Applied Materials: You're Late To The AI Party
• Neutral Sentiment: Analyst and watchlist coverage continued, including a mention from Susquehanna and a manufacturing-stocks roundup, which may support sentiment but did not introduce a major new catalyst. Top Manufacturing Stocks To Add to Your Watchlist - July 9th

Applied Materials Company Profile

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials' offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.

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