Mizuho Forecasts Strong Price Appreciation for Applied Materials (NASDAQ:AMAT) Stock

Key Points

• Mizuho raised its price target on Applied Materials from $410 to $500 and kept an “outperform” rating, implying about 15.7% upside from the prior close.
• Other Wall Street firms were also more bullish, with several analysts lifting targets after the company’s earnings report; the stock now carries a consensus “Moderate Buy” and average price target of $413.59.
• Applied Materials posted strong quarterly results, beating EPS and revenue estimates and issuing Q3 guidance above consensus, helped by continued AI-related demand for semiconductor equipment.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its price objective hoisted by research analysts at Mizuho from $410.00 to $500.00 in a research report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the manufacturing equipment provider's stock. Mizuho's price objective would indicate a potential upside of 15.69% from the stock's previous close.

A number of other analysts have also commented on the stock. The Goldman Sachs Group restated a "buy" rating and set a $520.00 target price on shares of Applied Materials in a report on Friday. Stifel Nicolaus increased their price target on shares of Applied Materials from $340.00 to $450.00 and gave the company a "buy" rating in a research report on Friday, February 13th. Needham & Company LLC lifted their price objective on shares of Applied Materials from $440.00 to $530.00 and gave the stock a "buy" rating in a research note on Friday. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $450.00 price objective on shares of Applied Materials in a report on Friday, February 13th. Finally, KeyCorp increased their target price on shares of Applied Materials from $450.00 to $550.00 and gave the stock an "overweight" rating in a report on Friday. Twenty-eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $413.59.

Applied Materials Stock Down 1.9%

NASDAQ:AMAT opened at $432.19 on Friday. The company has a market cap of $342.99 billion, a price-to-earnings ratio of 44.24, a P/E/G ratio of 1.94 and a beta of 1.66. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71. The stock's fifty day moving average price is $377.52 and its two-hundred day moving average price is $318.62. Applied Materials has a 52-week low of $153.47 and a 52-week high of $448.45.

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, topping analysts' consensus estimates of $2.68 by $0.18. The company had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. Applied Materials had a return on equity of 37.52% and a net margin of 27.78%.The firm's quarterly revenue was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.39 earnings per share. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, analysts anticipate that Applied Materials will post 11.16 EPS for the current year.

Insider Buying and Selling

In other news, Director Judy Bruner sold 3,969 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $377.02, for a total value of $1,496,392.38. Following the transaction, the director directly owned 28,589 shares of the company's stock, valued at $10,778,624.78. This represents a 12.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brice Hill sold 5,000 shares of Applied Materials stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $361.21, for a total transaction of $1,806,050.00. Following the sale, the chief financial officer directly owned 138,565 shares of the company's stock, valued at $50,051,063.65. The trade was a 3.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 12,003 shares of company stock worth $4,484,189. Company insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC bought a new position in Applied Materials during the 4th quarter worth $25,000. Redmont Wealth Advisors LLC acquired a new position in shares of Applied Materials in the 3rd quarter valued at approximately $26,000. Wilkerson Advisory Group LLC bought a new stake in shares of Applied Materials during the 4th quarter worth approximately $26,000. Financial Freedom LLC bought a new stake in Applied Materials during the first quarter worth $28,000. Finally, Highline Wealth Partners LLC increased its stake in shares of Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider's stock valued at $30,000 after purchasing an additional 38 shares during the last quarter. Institutional investors own 80.56% of the company's stock.

Key Headlines Impacting Applied Materials

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

• Positive Sentiment: Applied Materials delivered a record quarter, beating Q2 EPS and revenue estimates, and management’s Q3 guidance came in above consensus, reinforcing confidence in AI-driven demand for semiconductor equipment. Reuters: Applied Materials sees upbeat quarterly revenue on sustained AI spending
• Positive Sentiment: Several analysts raised price targets after the report, including KeyCorp, Morgan Stanley, Needham, and TD Cowen, signaling growing optimism about Applied Materials’ earnings power and multi-year growth outlook. Benzinga: Applied Materials To Rally Around 25%? Here Are 10 Top Analyst Forecasts For Friday
• Positive Sentiment: Commentary around the results emphasized that AI demand is helping Applied Materials reach its highest margins in 25 years, which supports the bull case for the stock. Benzinga: AI Demand Pushes Applied Materials To Highest Margins In 25 Years
• Neutral Sentiment: The company’s latest results confirmed that AI-related spending is offsetting softer growth in China, so investors are weighing strong semiconductor demand against regional macro and export-risk headwinds. WSJ: Applied Materials Profit, Sales Rise on Demand for Semiconductor Equipment
• Negative Sentiment: Despite the solid fundamentals, Applied Materials and other AI chip names slipped in premarket trading as Treasury yields rose and the market turned cautious, which can temporarily pressure the shares even after strong earnings. Investor's Business Daily: Stock Market Today

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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