Applied Materials Stock (AMAT) Tanks as Analysts Downgrade after Weak Guidance
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Five-star Bank of America analyst Vivek Arya explained that while AMAT remains a high-quality supplier, its concentration in these struggling areas could hurt its performance in this phase of the semiconductor cycle. Arya warned that the uncertainty facing the company may continue for some time, thereby limiting its ability to outperform even with a reasonable valuation. He also clarified that the issues appear to be specific to AMAT and are not necessarily indicative of problems for its peers like Lam Research (LRCX) or KLA (KLAC).
Similarly, Summit Insights Group, led by five-star analyst Kinngai Chan, downgraded AMAT to Hold after noting that U.S. export restrictions may have caused Chinese customers to over-order, which resulted in excess capacity. Nevertheless, not every firm turned negative. In fact, Needham reaffirmed its Buy rating and kept a bullish price target of $240 per share. Analysts Charles Shi and Ross Cole noted that although AMAT revised its FY26 forecasts downward, the company is still optimistic about DRAM growth, even after a strong expansion in FY25 (excluding China).
What Is the Target Price for AMAT?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMAT stock based on 19 Buys, eight Holds, and one Sell assigned in the past three months. Furthermore, the average AMAT stock price target of $203.21 per share implies 24.6% upside potential.
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