Applied Materials Inc shares rose 5.01% as the stock crossed above the 5-day SMA, reflecting positive market sentiment amid broader market gains with the Nasdaq-100 up 0.91% and the S&P 500 up 0.42%.
The increase in Applied Materials' stock price is attributed to China's new semiconductor policy mandating that chipmakers use at least 50% domestically produced equipment, which is expected to boost demand for local suppliers. Despite the challenges posed by U.S. restrictions, analysts remain optimistic about U.S. equipment makers, projecting strong growth for Applied Materials in the coming years.
This policy shift could enhance Applied Materials' market position in China, as the company adapts to the changing landscape and capitalizes on the increased demand for domestic semiconductor manufacturing equipment.
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
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.
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 319.460
Low
190.00
Averages
288.05
High
425.00
Current: 319.460
Low
190.00
Averages
288.05
High
425.00
Deutsche Bank
Melissa Weathers
Hold
to
Buy
upgrade
$275 -> $390
2026-01-23
New
Reason
Deutsche Bank
Melissa Weathers
Price Target
$275 -> $390
AI Analysis
2026-01-23
New
upgrade
Hold
to
Buy
Reason
Deutsche Bank analyst Melissa Weathers upgraded Applied Materials to Buy from Hold with a price target of $390, up from $275. The firm upped estimates for the company to reflect a "much more constructive" wafer fab equipment environment entering 2026 and 2027. Deutsche's out-year estimates are now 10% above the Street, with potential upside risk, the analyst tells investors in a research note. The firm views Applied Materials' current discount valuation to peers as overdone. it sees potential for the gap to shrink going forward.
Needham
Charles Shi
Strong Buy
upgrade
$260 -> $390
2026-01-20
Reason
Needham
Charles Shi
Price Target
$260 -> $390
2026-01-20
upgrade
Strong Buy
Reason
Needham analyst Charles Shi raised the firm's price target on Applied Materials to $390 from $260 and keeps a Strong Buy rating on the shares. Commentary from the Needham Growth Conference pointed to broad-based demand improvement over the past 90 days, supporting a bullish sector outlook, the analyst tells investors in a research note. Despite strong year-to-date performance, the direction for semicap remains positive, with Q4 earnings expected to deliver multiple catalysts, the firm says.
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KeyBanc
Overweight
maintain
$285 -> $380
2026-01-16
Reason
KeyBanc
Price Target
$285 -> $380
2026-01-16
maintain
Overweight
Reason
KeyBanc raised the firm's price target on Applied Materials (AMAT) to $380 from $285 and keeps an Overweight rating on the shares. The firm notes Applied Materials' multiple expansion has lagged front-end peers KLA Corp. (KLAC) and Lam Research (LRCX). KeyBanc thinks that more muted expansion is a function of the company's higher exposure to trailing edge nodes for both China and ROW customers. The firm understands that underperformance but notes Applied Materials is the most diversified supplier and should benefit from increasing deposition and etch intensity as chip architecture at the leading edge goes vertical.
Goldman Sachs
James Schneider
Buy
maintain
$250 -> $310
2026-01-09
Reason
Goldman Sachs
James Schneider
Price Target
$250 -> $310
2026-01-09
maintain
Buy
Reason
Goldman Sachs analyst James Schneider raised the firm's price target on Applied Materials to $310 from $250 and keeps a Buy rating on the shares. Applied Materials remains well positioned as etch and deposition demand intensifies, with tight DRAM and NAND markets expected to drive strong equipment orders in 2026-2027, the analyst tells investors in a research note. The company's China exposure is now largely normalized, reducing risk relative to peers, the firm says.
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.
