Jefferies Reiterates Buy Rating on Applied Materials
Jefferies reaffirms its buy rating on Applied Materials, setting a price target of $770, a 10.10% upside from the current price.
Key Points
- Jefferies reiterated its buy rating on Applied Materials, Inc. (NasdaqGS:AMAT) with a price target of $770 on June 26, 2026.
- Jefferies's $770 price target implies 10.10% upside from Applied Materials, Inc.'s ($AMAT) current $699.39 share price.
- Applied Materials shares traded near $646.18 on Friday, with a market cap of $530.4 billion and a P/E ratio of 62.9.
- Insiders at Applied Materials sold shares in June, while analysts maintain a strong buy consensus with a mean target price of $532.34.
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Jefferies has reiterated its buy rating on Applied Materials, Inc. (NasdaqGS:AMAT) as of June 26, 2026, setting a price target of $770. Analyst Blayne Curtis maintained the bullish outlook, suggesting confidence in the company's future performance.
Jefferies vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
Other Institutional Activity in Applied Materials
BlackRock, Inc. added 3,715,744 shares, bringing its total to 78,974,833 shares valued at about $26.99 billion, a 4.9% increase. Vanguard Capital Management LLC opened a new position with 51,577,799 shares worth approximately $17.63 billion. State Street Corp reduced its holdings by 423,673 shares, ending with 37,506,950 shares valued at $12.82 billion, marking a 1.1% decrease. Capital Research Global Investors cut its position by 3,251,625 shares, now holding 29,455,424 shares worth $10.07 billion, a 9.9% reduction. Geode Capital Management, LLC increased its stake by 3,313,100 shares to a total of 21,921,798 shares, valued at $7.48 billion, a 17.8% rise.
Applied Materials, Inc. Stock Up 51.5%
Shares of NasdaqGS:AMAT traded near $646.18 on Friday. Applied Materials has a market capitalization of $530.4 billion, with a P/E ratio of 62.9 and a forward P/E of 41.0. The stock's beta is 1.672, indicating higher volatility compared to the market. Over the past year, the stock has ranged from a low of $154.47 to a high of $669.22. Its 50-day moving average is $463.56, and the 200-day moving average is $327.04.
$AMAT price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Applied Materials reported revenue of $29.02 billion, with a growth rate of 11.4%. The company achieved an earnings per share (EPS) of $10.62, with a net margin of 29.31% and a return on equity (ROE) of 39.69%. The next earnings release 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
The company pays an annual dividend of $2.12 per share, yielding 0.32%. Its dividend payout ratio is 17.31%, indicating a conservative payout policy. The next ex-dividend date is not specified.
Insider Buying and Selling at Applied Materials, Inc.
In June, several insiders sold shares of Applied Materials. Raja Prabu, President of the Semiconductor Products Group, sold 10,000 shares on June 18 at an average price of $633.53. Gary Dickerson, the President and CEO, sold 17,000 shares on June 16, while Omkaram Nalamasu, Senior Vice President and CTO, sold 24,263 shares at an average price of $593.43. Thomas Iannotti sold 9,250 shares at an average price of $599.77.
Analysts Set New Price Targets
On June 26, 2026, Jefferies maintained its buy rating on Applied Materials with a $770 price target. B. Riley Securities also maintained a buy rating, setting a target price of $790. B of A Securities, Wells Fargo, and Citigroup also reiterated buy ratings with targets of $720, $715, and $710, respectively. The consensus among 35 analysts is a strong buy, with a mean target price of $532.34.
About Applied Materials
Applied Materials, Inc. is a global leader in providing materials engineering solutions used to produce virtually every new chip and advanced display in the world. Headquartered in Santa Clara, California, the company operates in the Technology sector, focusing on Semiconductor Equipment & Materials. Led by CEO Gary E. Dickerson, Applied Materials employs approximately 36,400 people worldwide. The company's operations are divided into Semiconductor Systems and Applied Global Services segments, serving customers across the U.S., China, Korea, Taiwan, Japan, and Europe.
Bottom Line
Jefferies' reiteration of a buy rating with a $770 target price underscores continued confidence in Applied Materials' prospects. Investors keep a close watch on such analyst updates for insights into potential stock movements. As always, remember these analyst ratings are based on past data and may not reflect future performance.
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