Applied Materials Inc (NASDAQ:AMAT) shares — after being in a slump Friday morning — are now up, after the company reported on Thursday up-beat fiscal fourth-quarter results.
• AMAT is trading at elevated levels. See what is driving the move here.
Here are some key analyst takeaways:
- JPMorgan analyst Harlan Sur reaffirmed an Overweight rating, while raising the price target from $220 to $260.
- Needham analyst Charles Shi maintained a Buy rating and price target of $260.
- Goldman Sachs analyst James Schneider reiterated a Buy rating and price target of $250.
Check out other analyst stock ratings.
JPMorgan: Applied Materials announced "solid" results and guidance, "reflecting continued momentum in areas of strength," Sur said. China-related headwinds are likely to ease going ahead, he added.
Applied Materials would at least grow in-line with WFE growth in 2026 and generate accelerated growth beyond that, the analyst stated. The advanced packaging business also seems "poised for a resumption in growth, particularly given AMAT's #1 position in HBM where we expect spending to inflect higher," he further wrote.
Needham: Applied Materials' revenue contracted by 7% sequentially to $6.8 billion but came in higher than the midpoint of its guidance, Shi said in a note. The contraction was due to a "decline of foundry/logic and NAND in Semi Systems, with DRAM showing incremental strength in the quarter," he wrote.
The company guided to revenue of $6.85 billion for the fiscal first quarter, the analyst stated management suggested that revenue is likely to remain at current levels before recovering in the back half of 2026, which mirrors comments from Lam Research and KLA, he added.
Goldman Sachs: Applied Materials reported revenue of $6.80 billion, above consensus of $6.65 billion, and non-GAAP earnings of $2.17 per share, beating Street expectations of $2.09 per share, Schneider said. Although Applied Materials reported higher-than-expected results, its guidance came in line with Street expectations, he added.
Management guided to revenue and non-GAAP earnings of $6.85 billion $1.98-$2.38 per share, the analyst stated.
"The company believes it is better positioned to capture market growth in the coming year, as it sees leading-edge logic, DRAM, and packaging to be among the fastest-growing market segments in CY26, areas where Applied has a stronger market share," he further wrote.
AMAT Price Action: Shares of Applied Materials are up 0.39% to $224.09 at the time of publication on Friday.
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