Bank of America Issues Positive Forecast for Applied Materials (NASDAQ:AMAT) Stock Price

Key Points

• Bank of America raised its price target on Applied Materials from $540 to $720 and kept a Buy rating, implying about 12.5% upside from the prior close.
• Other analysts have also turned more bullish, with several lifting targets and the stock now carrying a Moderate Buy consensus and an average target price of $501.26.
• Applied Materials reported better-than-expected quarterly results, including EPS of $2.86 versus $2.68 expected and revenue of $7.91 billion, while also issuing Q3 2026 guidance of 3.160-3.560 EPS.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its price target increased by equities research analysts at Bank of America from $540.00 to $720.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the manufacturing equipment provider's stock. Bank of America's price objective would suggest a potential upside of 12.47% from the company's previous close.

Other equities research analysts have also recently issued research reports about the stock. Wolfe Research upped their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the stock an "outperform" rating in a research report on Friday, May 15th. Raymond James Financial set a $650.00 target price on shares of Applied Materials in a research report on Wednesday, June 10th. Citigroup upped their price target on shares of Applied Materials from $550.00 to $710.00 and gave the stock a "buy" rating in a report on Wednesday, June 17th. TD Cowen increased their price target on shares of Applied Materials from $450.00 to $525.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Finally, Argus boosted their price objective on shares of Applied Materials from $420.00 to $500.00 and gave the company a "buy" rating in a research report on Tuesday, May 19th. Twenty-seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, Applied Materials currently has an average rating of "Moderate Buy" and an average target price of $501.26.

Applied Materials Price Performance

Applied Materials stock opened at $640.18 on Tuesday. The firm has a market cap of $508.28 billion, a PE ratio of 60.11, a price-to-earnings-growth ratio of 1.72 and a beta of 1.67. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.51 and a quick ratio of 1.80. The stock's fifty day moving average price is $455.89 and its two-hundred day moving average price is $368.31. Applied Materials has a one year low of $154.46 and a one year high of $641.18.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.68 by $0.18. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.The firm had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period in the prior year, the company posted $2.39 EPS. The company's revenue was up 11.4% compared to the same quarter last year. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, research analysts expect that Applied Materials will post 12.1 EPS for the current fiscal year.

Insider Activity at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total transaction of $5,547,872.50. Following the sale, the director owned 40,559 shares in the company, valued at $24,326,071.43. The trade was a 18.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Gary E. Dickerson sold 71,727 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $593.75, for a total value of $42,587,906.25. Following the completion of the sale, the chief executive officer directly owned 1,695,164 shares of the company's stock, valued at approximately $1,006,503,625. The trade was a 4.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 199,767 shares of company stock worth $114,104,709 over the last 90 days. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Materials

A number of hedge funds have recently bought and sold shares of AMAT. Financial Freedom LLC bought a new position in shares of Applied Materials in the 1st quarter worth about $28,000. Cornerstone Financial Management LLC acquired a new stake in Applied Materials during the fourth quarter worth approximately $25,000. Whipplewood Advisors LLC grew its stake in Applied Materials by 218.8% during the first quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider's stock worth $35,000 after purchasing an additional 70 shares during the period. Wilkerson Advisory Group LLC bought a new stake in Applied Materials in the fourth quarter worth approximately $26,000. Finally, MBM Wealth Consultants LLC acquired a new position in Applied Materials in the first quarter valued at approximately $38,000. Institutional investors own 80.56% of the company's stock.

Key Stories Impacting Applied Materials

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

• Positive Sentiment: Citi raised its price target on Applied Materials to $710 from $550 and kept a Buy rating, reinforcing confidence that semiconductor equipment demand remains strong. A Growing Supply Gap Has Analysts Eyeing Applied Materials (AMAT)
• Positive Sentiment: Reuters reported that Applied Materials signed a long-term deal with EssilorLuxottica to develop augmented-reality display technology and AI glasses, expanding its growth opportunities beyond core chip equipment. Applied Materials (AMAT) and EssilorLuxottica Sign Long-Term Deal, Reuters Reports
• Positive Sentiment: Recent market commentary suggests AI demand could help justify Applied Materials’ premium valuation, with investors betting on sustained semiconductor infrastructure spending. Applied Materials Is Now More Expensive Than Its Dot-Com Era Peak. AI Demand Justifies the AMAT Stock Valuation.
• Neutral Sentiment: Insider Prabu G. Raja sold 10,000 shares for about $6.3 million, a disclosure that may attract attention but does not necessarily signal a change in the company’s fundamentals. SEC Form 4 filing
• Negative Sentiment: Some commentary warns that AMAT’s valuation has become stretched, which could cap near-term upside if growth expectations soften. Applied Materials Stock Looks Pricey—Can AI Demand Justify the Rally?

About Applied Materials

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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