Should You Buy Applied Materials Inc (AMAT) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
336.750
1 Day change
1.21%
52 Week Range
344.040
Analysis Updated At
2026/01/28
Buy now for a long-term investor. AMAT is in a strong uptrend with improving industry tailwinds (WFE upcycle, TSMC capex rising) and Wall Street sentiment has turned materially more bullish with multiple upgrades and large price-target hikes. The stock is extended short-term (RSI elevated and trading above prior resistance), but for a beginner long-term buyer with $50k–$100k who doesn’t want to wait for a better entry, the current setup still favors buying rather than holding off.
Technical Analysis
Trend is bullish. Moving averages are stacked positively (SMA_5 > SMA_20 > SMA_200), and MACD histogram is positive and expanding (1.34), confirming upward momentum. RSI(6) at ~72 signals the stock is getting overbought/extended short-term. Price is 347.32 in pre-market, which is above Pivot (317.48), above R1 (332.56), and above R2 (341.87) — a breakout/extension that supports the bull trend but increases near-term pullback risk. Near-term levels: former resistance zone 332–342 is now the key area to hold; deeper support near ~317.
Options Data
Bearish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Options sentiment is mixed-to-slightly bullish: volume put/call of 0.63 suggests more call trading than put trading (bullish near-term interest), while open-interest put/call of 1.08 suggests slightly more put positioning outstanding (more hedging/caution among holders). Implied volatility is elevated (30D IV ~46% with IV percentile ~78.8), indicating the market is pricing meaningful movement and option premiums are relatively expensive.
Technical Summary
Sell
4
Buy
9
Positive Catalysts
2) Customer capex: TSMC planning 2026 capex of ~$52B–$56B is a direct positive read-through to WFE suppliers like AMAT. 3) News/market tone supportive: media commentary (e.g., Cramer) specifically favoring semiconductor equipment as a steadier way to play AI-driven growth. 4) Upcoming catalyst: QJAN 2026 earnings on 2026-02-12 (after hours) could extend momentum if guidance confirms strengthening WFE conditions.
Neutral/Negative Catalysts
1) Short-term technical stretch: RSI is elevated and price is extended above R2, increasing odds of a near-term dip even within an uptrend. 2) Short-horizon quant/stat signal provided suggests mild weakness over the next month (-3.61% expected in the pattern-based study), consistent with an overextended run. 3) Fundamental/topical risks highlighted by analysts: exposure to trailing-edge nodes and prior China share loss/Intel exposure could create periods of relative underperformance vs peers.
Financial Performance
Latest reported quarter (2025/Q4): Revenue was $6.8B, down 3.48% YoY (top-line softness). However, profitability improved meaningfully: Net income rose 9.59% YoY to $1.897B, EPS rose 13.94% YoY to $2.37, and gross margin improved to 48.01% (+1.42% YoY). Net result: even with slight revenue decline, operating efficiency/margins and earnings growth trends are positive.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analyst trend has turned sharply more bullish in January 2026: multiple firms raised price targets substantially and reiterated/issued Buy/Overweight/Strong Buy ratings (e.g., Deutsche Bank upgrade to Buy with PT $390 from $275; Needham PT to $390 from $260; KeyBanc PT to $380 from $285; Goldman PT to $310 from $250; Cantor PT to $350 from $300). Wall Street pros: diversified exposure across deposition/etch/CMP, leverage to increasing process intensity at leading edge and memory (HBM/DRAM), and improving WFE cycle into 2026–2027; also perceived valuation discount to peers could compress. Cons: higher exposure to trailing-edge dynamics and lingering concerns around China/Intel mix. Overall, the Street view is net-positive and strengthening.
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 USD and a high forecast of 425 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 USD and a high forecast of 425 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: 332.710
Low
190
Averages
288.05
High
425
Current: 332.710
Low
190
Averages
288.05
High
425
Mizuho
NULL -> Outperform
upgrade
$336
AI Analysis
2026-01-27
New
Reason
Mizuho
Price Target
$336
AI Analysis
2026-01-27
New
upgrade
NULL -> Outperform
Reason
Applied Materials jumps 1% to $336 after Mizuho upgrade to Outperform
Mizuho
Vijay Rakesh
Neutral -> Outperform
upgrade
$275 -> $370
2026-01-27
New
Reason
Mizuho
Vijay Rakesh
Price Target
$275 -> $370
2026-01-27
New
upgrade
Neutral -> Outperform
Reason
Mizuho analyst Vijay Rakesh upgraded Applied Materials to Outperform from Neutral with a price target of $370, up from $275. As the world's number two wafer fab equipment supplier, Applied Materials will benefit from accelerating spending in the U.S., Taiwan and Japan, the analyst tells investors in a research note. The firm sees tailwinds for the company as it estimates 2026 WFE spending will be up 13% year-over-year in 2026 and 12% in 2027. This is a "significant acceleration" versus Mizuho's prior expectations, the analyst notes.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for AMAT
