Citigroup Forecasts Strong Price Appreciation for Applied Materials (NASDAQ:AMAT) Stock

Applied Materials (NASDAQ:AMAT) had its price target hoisted by analysts at Citigroup from $400.00 to $420.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the manufacturing equipment provider’s stock. Citigroup’s price objective points to a potential upside of 18.34% from the company’s previous close.

A number of other brokerages have also recently issued reports on AMAT. DZ Bank raised shares of Applied Materials from a “strong sell” rating to a “hold” rating in a research report on Friday, November 14th. B. Riley Financial reissued a “buy” rating on shares of Applied Materials in a report on Monday, February 9th. TD Cowen lifted their price target on shares of Applied Materials from $315.00 to $450.00 and gave the company a “buy” rating in a research report on Friday. Summit Insights raised Applied Materials from a “hold” rating to a “buy” rating in a research report on Friday. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $470.00 price objective on shares of Applied Materials in a report on Friday. Twenty-eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $361.03.

Applied Materials Stock Performance

NASDAQ AMAT opened at $354.91 on Friday. The stock has a market cap of $281.70 billion, a PE ratio of 36.33, a P/E/G ratio of 3.15 and a beta of 1.70. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.87 and a current ratio of 2.61. The firm has a 50-day moving average of $295.20 and a 200-day moving average of $236.72. Applied Materials has a 52-week low of $123.74 and a 52-week high of $376.32.

Applied Materials (NASDAQ:AMAT) last released its quarterly earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.19. Applied Materials had a net margin of 27.78% and a return on equity of 38.52%. The firm had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.88 billion. During the same period in the prior year, the firm earned $2.38 EPS. The business’s revenue was down 2.1% on a year-over-year basis. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. On average, sell-side analysts anticipate that Applied Materials will post 9.38 EPS for the current year.

Insider Activity at Applied Materials

In related news, SVP Teri A. Little sold 4,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $238.24, for a total transaction of $952,960.00. Following the completion of the transaction, the senior vice president directly owned 84,351 shares in the company, valued at $20,095,782.24. This represents a 4.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Adam Sanders sold 609 shares of the firm’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $255.53, for a total transaction of $155,617.77. Following the completion of the sale, the chief accounting officer owned 4,413 shares in the company, valued at $1,127,653.89. This represents a 12.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 8,609 shares of company stock worth $2,044,898 over the last ninety days. 0.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Materials

Several large investors have recently bought and sold shares of the company. Wilkerson Advisory Group LLC bought a new position in Applied Materials in the 4th quarter valued at approximately $26,000. Highline Wealth Partners LLC increased its position in Applied Materials by 48.7% in the 4th quarter. Highline Wealth Partners LLC now owns 116 shares of the manufacturing equipment provider’s stock valued at $30,000 after acquiring an additional 38 shares during the period. Joseph Group Capital Management bought a new position in shares of Applied Materials during the fourth quarter valued at $31,000. Marquette Asset Management LLC lifted its holdings in shares of Applied Materials by 150.0% during the third quarter. Marquette Asset Management LLC now owns 125 shares of the manufacturing equipment provider’s stock worth $26,000 after purchasing an additional 75 shares during the period. Finally, Redmont Wealth Advisors LLC acquired a new position in shares of Applied Materials during the third quarter worth $26,000. 80.56% of the stock is currently owned by institutional investors.

More Applied Materials News

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

• Positive Sentiment: Q1 results beat consensus — EPS of $2.38 topped estimates and revenue of $7.01B beat expectations, evidence that services and AI-related demand are offsetting cyclical headwinds. This beat is the primary catalyst for the rally. Applied Materials Q1 Earnings Beat Estimates, Revenues Fall Y/Y
• Positive Sentiment: Strong guidance and AI-driven order cadence — management set Q2 EPS and revenue guidance above Street consensus and highlighted surging orders tied to AI processors and tightening memory demand, supporting a view of sustained equipment spending. Applied Materials jumps as AI demand drives chipmaking tool orders
• Positive Sentiment: Analyst upgrades and price-target increases — multiple firms raised ratings/targets (examples cited include Needham, Mizuho, Citigroup, B. Riley), which amplifies buying momentum and reduces near-term downside from sell-side skepticism.
• Neutral Sentiment: Regulatory settlement resolved — Applied reached a $252.5M civil settlement with the U.S. Department of Commerce over prior export issues; DOJ and SEC closed related probes without action. The payment is a one-time cost but it removes regulatory overhang going forward. Applied Materials Reaches Resolution with the U.S. Department of Commerce
• Negative Sentiment: Valuation concerns and bear case commentary — some analysts and op-eds argue the stock’s run has left limited upside and warn of pricey multiples; this creates the risk of profit-taking if future execution or guidance lags. Applied Materials: Little Opportunity Left After A Monstrous Run

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.