JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Applied Materials (NASDAQ:AMAT) Stock

Key Points

• JPMorgan raised its price target on Applied Materials to $515 from $400 and kept an overweight rating, implying about 17.9% upside from the prior close.
• Several other analysts also boosted their targets after the company’s strong results, with the consensus view remaining Moderate Buy and a consensus price target of $431.34.
• Applied Materials reported Q2 EPS of $2.86 on revenue of $7.91 billion, both ahead of estimates, and it also issued Q3 guidance above Wall Street expectations.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its target price boosted by analysts at JPMorgan Chase & Co. from $400.00 to $515.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the manufacturing equipment provider's stock. JPMorgan Chase & Co.'s target price indicates a potential upside of 17.88% from the company's previous close.

A number of other equities research analysts have also weighed in on the stock. Wells Fargo & Company lifted their price objective on shares of Applied Materials from $435.00 to $520.00 and gave the company an "overweight" rating in a report on Friday. Barclays lifted their price objective on shares of Applied Materials from $450.00 to $500.00 and gave the company an "overweight" rating in a report on Friday. Susquehanna lifted their price objective on shares of Applied Materials from $435.00 to $500.00 and gave the company a "positive" rating in a report on Thursday, April 9th. Royal Bank Of Canada lifted their price objective on shares of Applied Materials from $500.00 to $520.00 and gave the company an "outperform" rating in a report on Friday. Finally, B. Riley Financial reiterated a "buy" rating on shares of Applied Materials in a report on Friday. Twenty-eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, Applied Materials presently has a consensus rating of "Moderate Buy" and a consensus price target of $431.34.

Applied Materials Trading Down 0.8%

AMAT traded down $3.67 on Friday, reaching $436.89. 5,940,332 shares of the company traded hands, compared to its average volume of 7,298,613. Applied Materials has a one year low of $153.47 and a one year high of $448.45. The firm has a fifty day simple moving average of $377.52 and a two-hundred day simple moving average of $318.62. The company has a market cap of $346.72 billion, a P/E ratio of 44.85, a price-to-earnings-growth ratio of 1.94 and a beta of 1.66. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its quarterly earnings data 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 net margin of 27.78% and a return on equity of 37.52%. The company had revenue of $7.91 billion during the quarter, compared to analyst estimates of $7.68 billion. During the same quarter last year, the business posted $2.39 EPS. The firm's revenue for the quarter was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. As a group, equities research analysts expect that Applied Materials will post 11.16 earnings per share for the current year.

Insider Buying and Selling at Applied Materials

In other Applied Materials news, Director Judy Bruner sold 3,969 shares of the firm's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $377.02, for a total transaction of $1,496,392.38. Following the transaction, the director owned 28,589 shares of the company's stock, valued at approximately $10,778,624.78. This trade represents a 12.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $379.16, for a total transaction of $202,471.44. Following the completion of the transaction, the chief accounting officer directly owned 4,625 shares in the company, valued at approximately $1,753,615. The trade was a 10.35% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 12,003 shares of company stock valued at $4,484,189. Company insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Financial Freedom LLC purchased a new position in shares of Applied Materials in the 1st quarter worth approximately $28,000. Cornerstone Financial Management LLC purchased a new position in shares of Applied Materials in the 4th quarter worth approximately $25,000. Whipplewood Advisors LLC grew its position in shares of Applied Materials by 218.8% in the 1st quarter. Whipplewood Advisors LLC now owns 102 shares of the manufacturing equipment provider's stock worth $35,000 after buying an additional 70 shares during the last quarter. Wilkerson Advisory Group LLC purchased a new position in shares of Applied Materials in the 4th quarter worth approximately $26,000. Finally, MBM Wealth Consultants LLC purchased a new position in shares of Applied Materials in the 1st quarter worth approximately $38,000. Hedge funds and other 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: Mizuho raised its price target on Applied Materials to $500 from $410 and kept an outperform rating, pointing to meaningful upside after the strong results. Mizuho raises Applied Materials target
• Positive Sentiment: KeyCorp, Morgan Stanley, Needham, and other firms also boosted targets and maintained bullish ratings, signaling growing confidence in Applied Materials’ earnings power and AI exposure. Analysts boost forecasts after results
• Positive Sentiment: The company reported fiscal Q2 earnings of $2.86 per share on revenue of $7.91 billion, both above expectations, and guided Q3 EPS and revenue above Wall Street estimates. Applied Materials beats Q2 estimates
• Positive Sentiment: Analysts and market commentary highlighted record margins and continued AI infrastructure demand, which is helping investors look past softer China-related demand concerns. AI demand boosts margins
• Neutral Sentiment: Broader market weakness and higher oil prices/Treasury yields weighed on AI and chip-related stocks in early trading, which may be contributing to intraday volatility in AMAT. Market pressure on chip stocks
• Negative Sentiment: Some reports noted that AMAT slipped in premarket despite the strong quarter, reflecting investor caution after a big run-up and possible profit-taking. AMAT slips despite record quarter

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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