Applied Materials (NASDAQ:AMAT) Price Target Raised to $540.00 at Bank of America

Applied Materials (NASDAQ:AMAT) had its price objective raised by equities research analysts at Bank of America from $465.00 to $540.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the manufacturing equipment provider’s stock. Bank of America‘s price target would suggest a potential upside of 22.71% from the stock’s previous close.

AMAT has been the subject of several other reports. HSBC began coverage on shares of Applied Materials in a research note on Friday, May 8th. They issued a “buy” rating and a $517.00 target price for the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of Applied Materials in a research note on Friday, March 27th. Wells Fargo & Company raised their price objective on shares of Applied Materials from $435.00 to $520.00 and gave the stock an “overweight” rating in a research report on Friday. Wolfe Research raised their price objective on shares of Applied Materials from $500.00 to $550.00 and gave the stock an “outperform” rating in a research report on Friday. Finally, Seaport Research Partners assumed coverage on shares of Applied Materials in a research report on Monday, May 4th. They set a “buy” rating and a $500.00 price objective for the company. Twenty-eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $454.79.

Applied Materials Stock Performance

NASDAQ:AMAT traded down $0.51 during mid-day trading on Friday, hitting $440.05. The stock had a trading volume of 8,024,194 shares, compared to its average volume of 7,324,263. Applied Materials has a twelve month low of $153.47 and a twelve month high of $448.45. The stock has a market cap of $349.23 billion, a price-to-earnings ratio of 45.04, a PEG ratio of 1.94 and a beta of 1.66. The company’s 50 day simple moving average is $377.52 and its 200 day simple moving average is $318.62. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.94 and a current ratio of 2.71.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, May 14th. The manufacturing equipment provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.68 by $0.18. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The business had revenue of $7.91 billion during the quarter, compared to the consensus estimate of $7.68 billion. During the same period last year, the business posted $2.39 EPS. Applied Materials’s revenue was up 11.4% on a year-over-year basis. Applied Materials has set its Q3 2026 guidance at 3.160-3.560 EPS. On average, equities research analysts forecast that Applied Materials will post 11.16 earnings per share for the current year.

Insider Activity at Applied Materials

In related news, Director Judy Bruner sold 3,969 shares of Applied Materials stock in a transaction that occurred on 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 trade represents a 12.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Adam Sanders sold 534 shares of Applied Materials stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $379.16, for a total transaction of $202,471.44. Following the completion of the transaction, the chief accounting officer directly owned 4,625 shares in the company, valued at $1,753,615. This trade represents a 10.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 12,003 shares of company stock valued at $4,484,189 over the last three months. 0.30% of the stock is owned by insiders.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Private Wealth Management Group LLC grew its stake in shares of Applied Materials by 4.9% during the first quarter. Private Wealth Management Group LLC now owns 531 shares of the manufacturing equipment provider’s stock worth $181,000 after buying an additional 25 shares during the last quarter. One Day In July LLC grew its stake in shares of Applied Materials by 2.4% in the first quarter. One Day In July LLC now owns 1,089 shares of the manufacturing equipment provider’s stock worth $372,000 after purchasing an additional 26 shares during the last quarter. Pinnacle Bancorp Inc. grew its stake in shares of Applied Materials by 1.3% in the first quarter. Pinnacle Bancorp Inc. now owns 2,082 shares of the manufacturing equipment provider’s stock worth $712,000 after purchasing an additional 27 shares during the last quarter. Horst & Graben Wealth Management LLC grew its stake in shares of Applied Materials by 2.1% in the first quarter. Horst & Graben Wealth Management LLC now owns 1,304 shares of the manufacturing equipment provider’s stock worth $446,000 after purchasing an additional 27 shares during the last quarter. Finally, Warther Private Wealth LLC grew its stake in shares of Applied Materials by 1.5% in the fourth quarter. Warther Private Wealth LLC now owns 1,908 shares of the manufacturing equipment provider’s stock worth $490,000 after purchasing an additional 28 shares during the last quarter. Institutional investors own 80.56% of the company’s stock.

Applied Materials News Roundup

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

• Positive Sentiment: Applied Materials reported record fiscal Q2 results, with earnings and revenue both topping expectations, showing that AI-related chip equipment demand remains very strong. Article Title
• Positive Sentiment: The company issued upbeat Q3 guidance above Wall Street estimates, signaling continued momentum from AI infrastructure spending and healthy customer demand. Article Title
• Positive Sentiment: Wall Street turned more constructive after the report, with multiple firms raising price targets, including JPMorgan, Mizuho, KeyCorp, Morgan Stanley, and Needham, reflecting confidence in multi-year earnings growth. Article Title
• Positive Sentiment: Analysts highlighted a multi-year AI boom and stronger wafer fab equipment demand, reinforcing the view that Applied Materials could sustain growth through 2027-2028. Article Title
• Neutral Sentiment: Despite the strong earnings beat, the stock has been volatile intraday as traders react to the large year-to-date rally and broader swings in semiconductor and growth stocks. Article Title

About Applied Materials

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.