Are Wall Street Analysts Predicting Applied Materials Stock Will Climb or Sink?

Santa Clara, California-based Applied Materials, Inc. (AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. Valued at $434 billion by market cap, the company’s customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules, and other electronic devices manufacturers.

Shares of this world’s largest semiconductor fabrication equipment supplier have significantly outperformed the broader market over the past year. AMAT has gained 198.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.6%. In 2026, AMAT stock is up 107.9%, surpassing the SPX’s 12.8% rise on a YTD basis.

Zooming in further, AMAT’s outperformance is also apparent compared to the VanEck Semiconductor ETF (SMH). The exchange-traded fund has gained about 98.4% over the past year. Moreover, AMAT’s triple-digit returns on a YTD basis outshine the ETF’s 58.2% gains over the same time frame.

AMAT outperformed on AI-driven demand for advanced wafer equipment in HBM/DRAM, leading-edge logic, and advanced packaging. Strong operational execution and growth in its high-margin services business drove margin expansion. AMAT also launched new gate-all-around and packaging products like Trillium ALD and a precision PECVD system, and expects growth in advanced packaging revenue this year. With customer orders extending eight quarters and a near-doubled manufacturing footprint in the U.S., Europe, and Singapore, management sees sustained demand through 2027 and is well-positioned for record chip equipment spending.

For the current fiscal year, ending in October, analysts expect AMAT’s EPS to grow 28.9% to $12.14 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 38 analysts covering AMAT stock, the consensus is a “Strong Buy.” That’s based on 28 “Strong Buy” ratings, three “Moderate Buys,” and seven “Holds.”

This configuration is more bullish than two months ago, with 27 analysts suggesting a “Strong Buy.” 

On Jul. 27, HSBC Holdings plc (HSBC) kept a “Buy” rating on AMAT and raised the price target to $683, implying a potential upside of 27.8% from current levels. 

The mean price target of $628.15 represents a 17.6% premium to AMAT’s current price levels. The Street-high price target of $900 suggests an ambitious upside potential of 68.5%.