Applied Materials Upgraded Amid Strong Semiconductor Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy AMAT?
Source: seekingalpha
Applied Materials Inc (AMAT) saw its stock rise by 5.00% as it crossed above the 5-day SMA, reflecting positive momentum in the semiconductor sector.
The stock was upgraded by Mizuho from Neutral to Outperform on January 27, with a price target increase from $275 to $370, driven by strong demand in the semiconductor equipment market across the U.S., Japan, and Taiwan. Additionally, Deutsche Bank raised its rating from Hold to Buy, increasing the price target from $275 to $390, citing favorable trends in wafer fabrication equipment expected to persist through 2027. This surge in demand has solidified Applied Materials' competitive position in the industry.
The upgrades from multiple analysts indicate a strong market outlook for Applied Materials, suggesting that the company is well-positioned to benefit from the ongoing growth in semiconductor capital expenditures, which could lead to further stock price appreciation.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMAT is 288.05 USD with a low forecast of 190.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 303.990
Low
190.00
Averages
288.05
High
425.00
Current: 303.990
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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