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Santa Clara, California-based Applied Materials, Inc. (AMAT) provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States and internationally. The company has a market cap of $326 billion and operates through Semiconductor Systems and Applied Global Services (AGS) segments.
AMAT shares have rallied the broader market over the past year and surged 180.1% compared to the S&P 500 Index ($SPX) 31.4% surge. Moreover, in 2026, the stock has grown nearly 66.8%, outperforming the SPX’s 7.6% rise as well.
Focusing on its industry benchmark, the State Street Technology Select Sector SPDR ETF (XLK) has risen 59.2% over the past year, underperforming the stock. In 2026, as well, XLK surged 18.1% and has lagged behind the stock.
On Feb. 13, AMAT stock rose 8.1% following the release of its better-than-expected Q1 2026 earnings. The company’s revenue fell 2% from the prior year’s quarter to $7 billion, but surpassed the Street’s estimates. Moreover, its adjusted EPS amounted to $2.38, also coming in on top of Wall Street’s forecasts. Management credited the impressive results to the acceleration of industry investments in AI computing. AMAT expects revenue in the range of $7.15 billion to $8.15 billion for the fiscal second quarter.
For the current year ending in October, analysts expect AMAT’s EPS to rise 18.3% year over year to $6.08. Moreover, the company has surpassed analysts’ consensus estimates in each of the past four quarters.
Among the 38 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 26 “Strong Buy” ratings, four “Moderate Buy,” and eight “Holds.”
The configuration has grown more bullish over the past month.
On May 5, Morgan Stanley analyst Shane Brett maintained a “Buy” rating for AMAT stock and raised its price target from $432 to $454.
AMAT’s mean price target of $417.55 is below the current market prices. Its Street-high target of $500 suggests a robust 16.7% upside potential from current price levels.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
