Latest news with #ShaneBrett
Yahoo
a day ago
- Business
- Yahoo
Morgan Stanley Raises the PT on Applied Materials (AMAT), Keeps an Equal Weight Rating
Applied Materials, Inc. (NASDAQ:AMAT) is one of the Most Profitable Large Cap Stocks to Buy According to Analysts. On August 15, Morgan Stanley analyst Shane Brett raised the firm's price target on Applied Materials, Inc. (NASDAQ:AMAT) from $169 to $172, while keeping an Equal Weight rating on the stock. The analyst noted that he raised the price target, taking confidence from a strong July quarter, which was slightly better than the firm's and broader market's expectations. This was driven by a stronger-than-expected performance in China. However, despite this, the company's guidance for the October quarter fell short of Morgan Stanley's forecast by around $500 million, thereby justifying a cautious rating. Brett also noted that the guidance miss is mainly due to the challenges in leading-edge logic chips and DRAM. A technician in a clean room assembling a semiconductor chip using a microscope. Applied Materials, Inc. (NASDAQ:AMAT) expects fiscal third-quarter revenue of around $7.2 billion, with gross margins at 48.3%. Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for manufacturing semiconductor chips and advanced displays. While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
26-06-2025
- Business
- Yahoo
Here's Why Morgan Stanley Maintained a Hold Rating on Applied Materials (AMAT)
Applied Materials, Inc. (NASDAQ:AMAT) is one of the 12 Best Stocks to Buy and Hold for the Long Term. On June 16, Shane Brett CFA from Morgan Stanley maintained a Hold rating on Applied Materials, Inc. (NASDAQ:AMAT) with a price target of $158. The cautious rating is based on a mixed outlook on Taiwan Semiconductor Manufacturing (NYSE:TSM) and DRAM growth. Shane Brett noted Applied Materials, Inc. (NASDAQ:AMAT)'s DRAM revenue is expected to drop 12% in fiscal 2026. On the other hand, some analysts remain optimistic about the company driven by new technologies like Gate-All-Around (GAA) transistors and backside power delivery. The outlook regarding the company's valuation also presented variation, with some analysts believing the company's semiconductor equipment business (SPE) deserves higher trading multiple due to its growth prospects. On the other hand, some think current valuations are considerably elevated. Due to this mixed outlook around Applied Materials, Inc. (NASDAQ:AMAT), Brett maintained a Hold rating on the stock. A technician in a clean room assembling a semiconductor chip using a microscope. During the fiscal second quarter of 2025, Applied Materials, Inc. (NASDAQ:AMAT) reported a revenue of $7.1 billion, reflecting a 7% increase year-over-year. The growth was driven by solid performance across the board. Notably, the gross margins improved 170 basis points to 49.2% reflecting the highest quarterly margins since FQ4 2000. Looking ahead, management anticipates slight year-over-year growth with revenue between $7.15 billion and $7.25 billion. While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
