Royal Bank Of Canada Issues Positive Forecast for Applied Materials (NASDAQ:AMAT) Stock Price

Key Points

• Royal Bank of Canada raised Applied Materials’ price target from $520 to $600 and maintained an “outperform” rating, implying 17.45% upside from the previous close. The analyst consensus remains “Moderate Buy,” with an average target of $610.
• Applied Materials reported quarterly revenue of $9.12 billion and EPS of $3.50, exceeding estimates, while revenue increased 24.8% year over year. The company also issued stronger-than-expected fourth-quarter EPS guidance of $3.82–$4.22.
• Despite the earnings and guidance beats, shares fell 4.4% to $510.86 as investors questioned whether growth can match elevated expectations and remain cautious about competition and the semiconductor spending cycle.

Applied Materials (NASDAQ:AMAT - Get Free Report) had its target price boosted by Royal Bank Of Canada from $520.00 to $600.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "outperform" rating on the manufacturing equipment provider's stock. Royal Bank Of Canada's price target indicates a potential upside of 17.45% from the company's previous close.

AMAT has been the subject of several other reports. The Goldman Sachs Group restated a "buy" rating and set a $645.00 price target on shares of Applied Materials in a research report on Monday, August 3rd. William Blair started coverage on Applied Materials in a report on Tuesday. They set a "market perform" rating for the company. Erste Group Bank downgraded Applied Materials from a "buy" rating to a "hold" rating in a research report on Wednesday, August 5th. HSBC reiterated a "buy" rating and set a $683.00 price target on shares of Applied Materials in a research note on Monday, July 27th. Finally, Susquehanna increased their price target on shares of Applied Materials from $575.00 to $900.00 and gave the stock a "positive" rating in a research report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat.com, Applied Materials has a consensus rating of "Moderate Buy" and an average price target of $610.00.

Applied Materials Trading Down 4.4%

Shares of AMAT stock traded down $23.68 during trading hours on Friday, hitting $510.86. The company had a trading volume of 5,288,354 shares, compared to its average volume of 8,206,977. 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 has a market capitalization of $405.60 billion, a PE ratio of 48.07, a price-to-earnings-growth ratio of 1.38 and a beta of 1.61. The company's fifty day moving average is $563.06 and its 200 day moving average is $444.45. Applied Materials has a fifty-two week low of $154.46 and a fifty-two week high of $739.67.

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

Insider Transactions at Applied Materials

In related news, Director Thomas J. Iannotti sold 9,250 shares of the stock in a transaction on 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 transaction, the director owned 40,559 shares of the company's stock, valued at $24,326,071.43. This represents a 18.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, SVP Omkaram Nalamasu sold 24,263 shares of the firm's stock in a transaction on 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 completion of the sale, the senior vice president owned 146,916 shares in the company, valued at approximately $87,184,361.88. This represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 278,088 shares of company stock valued at $169,654,805 over the last ninety days. Company insiders own 0.30% of the company's stock.

Institutional Investors Weigh In On Applied Materials

Several hedge funds and other institutional investors have recently made changes to their positions in AMAT. Verity Asset Management Inc. acquired a new stake in Applied Materials during the second quarter worth approximately $316,000. Park Place Capital Corp boosted its holdings in shares of Applied Materials by 340.1% in the 2nd quarter. Park Place Capital Corp now owns 5,977 shares of the manufacturing equipment provider's stock valued at $4,321,000 after buying an additional 4,619 shares in the last quarter. Peak Asset Management LLC grew its position in shares of Applied Materials by 29.8% in the 2nd quarter. Peak Asset Management LLC now owns 15,352 shares of the manufacturing equipment provider's stock valued at $11,100,000 after buying an additional 3,521 shares during the last quarter. Fiduciary Financial Advisors purchased a new position in shares of Applied Materials in the 2nd quarter valued at $757,000. Finally, Vega Investment Solutions acquired a new stake in Applied Materials during the 2nd quarter worth $22,681,000. Institutional investors and hedge funds 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: 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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