Wells Fargo Reiterates Buy Rating for Applied Materials, Inc.
Wells Fargo sets a new price target of $715 for Applied Materials, Inc, a 21.40% upside from the current price.
Key Points
- Wells Fargo reiterated its buy rating on Applied Materials, Inc. (AMAT) on June 22, 2026, with a new price target of $715.
- Wells Fargo's $715 price target implies 21.40% upside from Applied Materials, Inc.'s ($AMAT) current $588.97 share price.
- On Monday, AMAT shares traded near $617.11, with a market cap of $489.96 billion and a P/E ratio of 58.16.
- Insiders at Applied Materials, including CEO Gary Dickerson, sold shares in mid-June without planned transactions.
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Wells Fargo reiterated its buy rating for Applied Materials, Inc. (NasdaqGS: AMAT) on June 22, 2026, setting a new price target of $715. Analyst Joe Quatrochi maintained his positive outlook on the semiconductor equipment maker, which continues to see strong demand in its sector.
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Applied Materials, Inc. Stock Up 27.6%
Shares of NasdaqGS:AMAT traded near $617.11 on Monday. The company boasts a market cap of approximately $489.96 billion, with a P/E ratio of 58.16 and a forward P/E of 37.87. Applied Materials has a beta of 1.672, indicating relatively higher volatility compared to the market. The stock has seen a 52-week low of $154.47 and a high of $638.90, with a 50-day moving average of $445.67 and a 200-day moving average of $317.82. Financially, the company maintains a current ratio of 2.508 and a quick ratio of 1.624, alongside a debt-to-equity ratio of 30.399.
$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, reflecting a growth rate of 11.4%. The company achieved a net margin of 29.31% and a return on equity of 39.69%. Earnings per share stood at $10.61. The next earnings report is expected on 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 offers an annual dividend rate of $2.12, yielding 0.34% with a payout ratio of 17.31%.
Insider Buying and Selling at Applied Materials, Inc.
Recent insider activity at Applied Materials included several sales. On June 16, 2026, CEO Gary Dickerson sold 71,727 shares at an average price of $593.75. Senior Vice President and CTO Omkaram Nalamasu sold 24,263 shares on the same day at an average price of $593.43. Other notable transactions included sales by Thomas Iannotti and Timothy Deane.
Analysts Set New Price Targets
On June 22, 2026, Wells Fargo maintained its buy rating for Applied Materials, setting a price target of $715. Citigroup also maintained its buy rating on June 17, with a similar target of $710. Barclays, UBS, and Cantor Fitzgerald have also maintained buy ratings with targets of $590, $570, and $650, respectively. The consensus among analysts is a strong buy, with a mean price target of $527.20 across 35 opinions.
About Applied Materials, Inc.
Applied Materials, Inc. is a leader in providing materials engineering solutions and equipment to the semiconductor and related industries worldwide. Headquartered in Santa Clara, California, and led by CEO Gary E. Dickerson, the company operates through its Semiconductor Systems and Applied Global Services segments. With a workforce of 36,400 employees, Applied Materials serves both the production of semiconductor wafers and chips and other electronic devices.
Bottom Line
Wells Fargo's reiteration of a buy rating for Applied Materials underscores the company's robust position in the semiconductor sector. Investors keep a close eye on such updates, as they reflect analysts' confidence in the company's growth potential. It's important to remember that analyst ratings are forward-looking and based on current market conditions and company performance.
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