B of A Securities Reiterates Buy Rating on Applied Materials
On June 23, B of A Securities maintained its buy rating for Applied Materials, Inc., setting a price target of $720, a 22.25% upside from the current price.
Key Points
- On June 23, 2026, B of A Securities reiterated its buy rating for Applied Materials, Inc. (AMAT) with a price target of $720.
- B of A Securities's $720 price target implies 22.25% upside from Applied Materials, Inc.'s ($AMAT) current $588.97 share price.
- Applied Materials, Inc. shares traded near $617 on Tuesday, with a market cap of $508.3 billion and a P/E ratio of 60.3.
- Analysts continue to show strong support for AMAT, with a consensus rating of strong buy and an average price target of $527.2.
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On June 23, 2026, B of A Securities reiterated its buy rating for Applied Materials, Inc. (NasdaqGS: AMAT), maintaining a price target of $720. Analyst Vivek Arya emphasized the positive outlook for the company's stock, which traded around $617 on Tuesday.
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Other Institutional Activity in Applied Materials
Several institutional investors have been active in Applied Materials recently. BlackRock, Inc. increased its holdings by 3.7 million shares, bringing its total to about 78.9 million shares valued at approximately $26.9 billion, a 4.9% increase. Vanguard Capital Management LLC opened a new position with 51.6 million shares worth around $17.6 billion. State Street Corp trimmed its stake by 423,673 shares, leaving it with 37.5 million shares valued at $12.8 billion, reflecting a 1.1% decrease. Capital Research Global Investors reduced its position by about 3.3 million shares to hold 29.5 million shares worth $10.1 billion, a decrease of 9.9%. Meanwhile, Geode Capital Management, LLC increased its holdings by 3.3 million shares, reaching a total of 21.9 million shares valued at $7.5 billion, a 17.8% increase.
Applied Materials, Inc. Stock Up 27.6%
Shares of NasdaqGS:AMAT traded near $617.11 on Tuesday. Applied Materials, Inc. has a market capitalization of $508.3 billion and a P/E ratio of 60.3, with a forward P/E of 39.3. The stock has a beta of 1.672, indicating higher volatility compared to the market. Its 52-week trading range is between $154.47 and $641.18, with a 50-day moving average of $445.67 and a 200-day moving average of $317.82. The company maintains a current ratio of 2.5 and a quick ratio of 1.6, with a debt-to-equity ratio of 30.4.
$AMAT price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
In its latest earnings report, Applied Materials, Inc. generated revenue of $29.02 billion, reflecting a growth of 11.4%. The company achieved a net margin of 29.3% and a return on equity (ROE) of 39.7%. Earnings per share (EPS) stood at $10.61. The next earnings announcement is scheduled for August 13, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
20 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 5.9%. Revenue beat estimates by 12.9%.
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Profit surprise
EBITDA beat by 52 percent. Operating income beat by 24 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
20 target raises.
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Earnings quality
Gross margin up 0.8 points. Operating margin up 1.3 points. Positive free cash flow.
Earnings Call Summary
Applied Materials delivered record revenue of $7.91 billion this quarter driven by strong artificial intelligence infrastructure demand. The company sees its highest gross margin in over 25 years at 50 percent. Management highlighted that artificial intelligence is diversifying beyond training into new areas like agentic applications, which increases demand for memory and processors, and they expect continued strong growth into 2027 and beyond as customers build new factories.
Guidance Applied expects about $8.95 billion in revenue next quarter, up nearly 23 percent from last year. The company expects earnings per share of $3.36, up nearly 36 percent. Management raised its full-year equipment growth outlook to more than 30 percent as artificial intelligence demand accelerates and customers add production capacity.
Clearly positive report. Results were better than expected, though the forward reset is not the strongest.
Dividend
Applied Materials offers an annual dividend rate of $2.12, yielding 0.34%. The company's dividend payout ratio is 17.3%, indicating a conservative approach to dividend distribution.
Insider Buying and Selling at Applied Materials, Inc.
Recent insider activity at Applied Materials includes sales by several executives. On June 18, 2026, Raja Prabu, President of the Semiconductor Products Group, sold 10,000 shares at an average price of $633.53. On June 16, 2026, CEO Gary Dickerson sold 71,727 shares at an average price of $593.75, while Senior Vice President and CTO Omkaram Nalamasu sold 24,263 shares at $593.43.
Analysts Set New Price Targets
On June 23, 2026, B of A Securities maintained its buy rating on Applied Materials with a $720 price target. Wells Fargo also maintained a buy rating on June 22, with a target of $715. Citigroup reiterated its buy rating on June 17, setting a target of $710. Analysts have a consensus strong buy rating on the stock, with an average price target of $527.2 based on 35 opinions.
About Applied Materials, Inc.
Applied Materials, Inc. is a leading provider of materials engineering solutions, equipment, and services for the semiconductor industry. Headquartered in Santa Clara, California, the company operates globally, serving semiconductor wafer and chip manufacturers. With over 36,400 employees, Applied Materials is led by CEO Gary E. Dickerson. The company operates through its Semiconductor Systems and Applied Global Services segments, offering products and services that enhance equipment and factory performance.
Bottom Line
The reaffirmation of a buy rating by B of A Securities suggests continued analyst confidence in Applied Materials, Inc.'s growth potential. With strong institutional interest and robust earnings, the company's stock is closely watched by investors. However, it's important to remember that analyst ratings and 13F filings reflect past data and may not indicate future performance.
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