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

Key Points

• JPMorgan raised Applied Materials’ price target to $660 from $515 and maintained an “overweight” rating, implying 27.56% upside from the prior close. Analysts overall assign the stock a “Moderate Buy” rating with an average target of $604.68.
• Applied Materials reported quarterly revenue of $9.12 billion, up 24.8% year over year, and EPS of $3.50, beating estimates. Its fourth-quarter guidance also exceeded consensus, supported by strong AI infrastructure and advanced-chip demand.
• Despite the strong results, shares fell 3.2% as investors questioned whether growth can justify the stock’s sharp rally and elevated valuation. Key risks include intensifying competition, margin pressure, China exposure and a potential peak in semiconductor capital spending; insiders have also sold significant shares recently.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its price target hoisted by equities research analysts at JPMorgan Chase & Co. from $515.00 to $660.00 in a research 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 suggests a potential upside of 27.56% from the company's previous close.

Several other research firms have also commented on AMAT. Sanford C. Bernstein reiterated an "outperform" rating on shares of Applied Materials in a research note on Friday. Bank of America reduced their target price on Applied Materials from $720.00 to $650.00 and set a "buy" rating for the company in a report on Friday. KeyCorp increased their price target on Applied Materials from $550.00 to $750.00 and gave the company an "overweight" rating in a research report on Monday, June 29th. Argus lifted their price target on Applied Materials from $420.00 to $500.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. Finally, Wells Fargo & Company boosted their price objective on Applied Materials from $715.00 to $740.00 and gave the stock an "overweight" rating in a research report on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $604.68.

Applied Materials Stock Down 3.2%

Shares of NASDAQ:AMAT opened at $517.39 on Friday. The business's 50 day moving average is $563.06 and its 200 day moving average is $444.45. Applied Materials has a 12-month low of $154.46 and a 12-month high of $739.67. The stock has a market cap of $410.78 billion, a price-to-earnings ratio of 48.12, a PEG ratio of 1.38 and a beta of 1.61. The company has a quick ratio of 1.80, a current ratio of 2.51 and a debt-to-equity ratio of 0.22.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The manufacturing equipment provider reported $3.50 EPS for the quarter, beating analysts' consensus estimates of $3.40 by $0.10. The business had revenue of $9.12 billion during the quarter, compared to analyst estimates of $8.99 billion. Applied Materials had a return on equity of 36.97% and a net margin of 29.31%.Applied Materials's quarterly revenue was up 24.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.48 EPS. Applied Materials has set its Q4 2026 guidance at 3.820-4.220 EPS. On average, sell-side analysts forecast that Applied Materials will post 12.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Thomas J. Iannotti sold 9,250 shares of Applied Materials stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $599.77, for a total value of $5,547,872.50. Following the completion of the sale, the director owned 40,559 shares of the company's stock, valued at approximately $24,326,071.43. This trade represents a 18.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Prabu G. Raja sold 10,000 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $633.53, for a total transaction of $6,335,300.00. Following the sale, the insider directly owned 346,642 shares in the company, valued at approximately $219,608,106.26. This trade represents a 2.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 278,088 shares of company stock valued at $169,654,805. Company insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Evolve Private Wealth LLC raised its stake in Applied Materials by 59.0% during the 1st quarter. Evolve Private Wealth LLC now owns 2,875 shares of the manufacturing equipment provider's stock valued at $983,000 after buying an additional 1,067 shares during the last quarter. WealthPlan Investment Management LLC purchased a new position in shares of Applied Materials in the 4th quarter worth $1,082,000. Ameritas Advisory Services LLC grew its holdings in shares of Applied Materials by 183.7% in the fourth quarter. Ameritas Advisory Services LLC now owns 3,073 shares of the manufacturing equipment provider's stock worth $790,000 after acquiring an additional 1,990 shares during the period. Handelsbanken Fonder AB increased its position in Applied Materials by 29.6% during the second quarter. Handelsbanken Fonder AB now owns 462,685 shares of the manufacturing equipment provider's stock valued at $334,521,000 after acquiring an additional 105,776 shares during the last quarter. Finally, CloudAlpha Capital Management Limited Hong Kong increased its position in Applied Materials by 204.8% during the fourth quarter. CloudAlpha Capital Management Limited Hong Kong now owns 140,773 shares of the manufacturing equipment provider's stock valued at $36,177,000 after acquiring an additional 94,587 shares during the last quarter. 80.56% of the stock is owned by institutional investors.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials reported record quarterly revenue of approximately $9.12 billion, up 24.8% year over year, while adjusted earnings of $3.50 per share exceeded the $3.40 consensus estimate. Gross margin reached a record 50.4%, supported by strong demand for equipment used in AI infrastructure and advanced chips. Applied Materials Announces Third Quarter 2026 Results
• Positive Sentiment: Management issued better-than-expected fourth-quarter guidance, projecting revenue of $9.8 billion to $10.8 billion versus a $9.5 billion consensus forecast, and EPS of $3.82 to $4.22 versus expectations of $3.65. Executives also indicated that AI-related demand provides unusually strong visibility into another potential record year in 2027. Applied Materials forecasts quarterly revenue above estimates
• Positive Sentiment: Needham reaffirmed its buy rating and set a $740 price target, implying significant upside from the reference price. Analysts continue to view Applied Materials as a key beneficiary of semiconductor manufacturers’ AI-related capital spending. Needham rating update
• Neutral Sentiment: Investors are likely to monitor equipment orders, DRAM and advanced-packaging demand, China exposure, and whether AI-related capital expenditures remain durable over the next several quarters. These metrics may determine whether the pullback is temporary or signals a broader semiconductor-cycle concern. Key metrics after earnings
• Negative Sentiment: Despite the earnings and guidance beats, shares fell because results did not clear an exceptionally high bar following a sharp rally. Investors questioned whether Applied Materials is growing faster than competitors and remain alert to intensifying competition, potential margin pressure, and a possible peak in the semiconductor capital-spending cycle. Applied Materials slips as investors seek faster growth

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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