Eight Firms Just Piled Into Applied Materials: Wall Street Hikes Price Targets After Record Quarter

"Eight Wall Street firms hiked their price targets on Applied Materials ( NASDAQ:AMAT | AMAT Price Prediction) in a single coordinated wave on May 15, following the chip equipment giant's record Q2 FY2026 results. New targets cluster between $500 and $550, with every firm keeping a bullish stance. For long-term investors, the unanimous price target raise signal validates the AI capex thesis at the semiconductor equipment layer."

"The unifying thesis across all eight firms is acceleration. Citi flagged accelerating sales growth in 2027, while KeyBanc highlighted more than 30% Systems growth this year with momentum continuing into 2027, calling advanced packaging its favorite growth area. Goldman Sachs analyst James Schneider pointed to Applied Materials management's raised outlook for over 30% semiconductor equipment growth in CY26, noting prior China market share concerns are giving way to improving mix from foundry, DRAM, and advanced packaging."

"Bernstein's Stacy Rasgon called the quarter "very good" on strong equipment sales, and Wells Fargo cited extended eight quarters rolling visibility, naming Applied its top semi cap pick. Morgan Stanley described 2026 as "shaping up to be an exceptional year," lifting its full-year systems growth forecast to 34% from 29%. Bank of America noted that the July quarter guide came in 10% and 17% ahead of consensus."

"Applied Materials posted Q2 FY2026 non-GAAP EPS of $2.86 against a $2.66 consensus, with revenue of $7.91 billion, up 11% year over year. It was the company's fourth consecutive earnings beat. CEO Gary Dickerson stated, "Applied Materials delivered record quarterly performance, and we now expect our semiconductor equipment business to grow more than 30 percent in calendar 2026." Semiconductor Systems operating margin expanded to 35%, and the dividend was raised 15% to $0.53, marking nine straight years of increases."

Eight Wall Street firms raised Applied Materials price targets in a coordinated wave after record Q2 FY2026 results. Targets clustered between $500 and $550 while all firms maintained bullish stances. The shared rationale centered on acceleration in semiconductor equipment demand, including accelerating sales growth in 2027 and more than 30% systems growth this year with momentum into 2027. Advanced packaging was cited as a favored growth area. Management’s raised outlook for over 30% semiconductor equipment growth in calendar 2026 supported the view that prior China market share concerns are improving through better mix across foundry, DRAM, and advanced packaging. Applied Materials reported non-GAAP EPS of $2.86 versus $2.66 consensus and revenue of $7.91 billion, up 11% year over year, with a fourth consecutive earnings beat.

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