Applied Materials Stock: Is Wall Street Bullish or Bearish?

Sohini Mondal Barchart Thu Aug 7, 10:06AM CDT
Applied Materials Inc_ campus sign-by Sundry Photography via iStock

With a market cap of around $143 billion, Applied Materials, Inc. (AMAT) is a leading provider of manufacturing equipment, services, and software for the semiconductor, display, and related industries. Operating globally through its Semiconductor Systems, Applied Global Services, and Display segments, the company delivers technologies that enhance device performance, yield, and cost-efficiency.

Shares of the Santa Clara, California-based company have underperformed the broader market over the past 52 weeks. AMAT stock has risen 3.7% over this time frame, while the broader S&P 500 Index ($SPX) has increased 22.6%. However, shares of Applied Materials have gained 13.9% on a YTD basis, outperforming SPX's 8.4% rise.

Looking closer, the maker of chipmaking equipment stock has also fallen behind the Technology Select Sector SPDR Fund's (XLK) 34.6% return over the past 52 weeks. 

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Despite reporting a better-than-expected Q2 2025 adjusted EPS of $2.39, shares of Applied Materials fell 5.3% the next day due to revenue of $7.1 billion, missing the estimate. The shortfall was primarily driven by underperformance in its Semiconductor Systems segment, which brought in $5.3 billion, below the analysts' expectation amid reduced ICAPS investment and U.S. export restrictions to China. Notably, revenue from China, its largest overseas market, fell sharply to 25% of total sales.

For the fiscal year ending in October 2025, analysts expect AMAT's adjusted EPS to grow 9.5% year-over-year to $9.47. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.

Among the 34 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 22 “Strong Buys,” three “Moderate Buy” ratings, and nine “Holds.” 

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On Aug. 4, UBS increased its price target on Applied Materials to $185, maintaining a Neutral rating.

As of writing, the stock is trading below the mean price target of $206.33. The Street-high price target of $250 implies a potential upside of 35.9% from the current price levels.


On the date of publication, Sohini Mondal 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.