Wells Fargo & Company Issues Pessimistic Forecast for Applied Materials (NASDAQ:AMAT) Stock Price

Applied Materials (NASDAQ:AMAT) had its target price lowered by research analysts at Wells Fargo & Company from $610.00 to $500.00 in a research report issued on Friday, Benzinga reports. The firm presently has an “overweight” rating on the manufacturing equipment provider’s stock. Wells Fargo & Company‘s target price points to a potential upside of 39.09% from the company’s current price.

AMAT has been the topic of a number of other research reports. The Goldman Sachs Group raised their target price on shares of Applied Materials from $645.00 to $670.00 and gave the stock a “buy” rating in a report on Friday, August 14th. Deutsche Bank reaffirmed a “buy” rating and set a $605.00 target price (down from $680.00) on shares of Applied Materials in a report on Friday, August 14th. William Blair initiated coverage on Applied Materials in a research report on Tuesday, August 11th. They set a “market perform” rating on the stock. Summit Insights cut Applied Materials from a “buy” rating to a “hold” rating in a research report on Friday. Finally, Zacks Research downgraded Applied Materials from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 15th. Twenty-nine research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, Applied Materials has a consensus rating of “Moderate Buy” and a consensus target price of $593.67.

Applied Materials Stock Performance

Shares of NASDAQ:AMAT traded down $21.47 on Friday, reaching $359.48. 4,159,642 shares of the company’s stock were exchanged, compared to its average volume of 7,911,989. The business’s 50-day moving average is $439.22 and its two-hundred day moving average is $445.83. The company has a quick ratio of 1.79, a current ratio of 2.42 and a debt-to-equity ratio of 0.20. Applied Materials has a fifty-two week low of $203.40 and a fifty-two week high of $739.67. The firm has a market capitalization of $285.28 billion, a price-to-earnings ratio of 31.00, a PEG ratio of 0.77 and a beta of 1.67.

Applied Materials (NASDAQ:AMAT) last posted its quarterly earnings results on Thursday, November 12th. The manufacturing equipment provider reported $4.16 EPS for the quarter, beating the consensus estimate of $4.06 by $0.10. Applied Materials had a net margin of 30.05% and a return on equity of 38.02%. The business had revenue of $10.41 billion during the quarter, compared to analyst estimates of $10.30 billion. During the same period in the previous year, the business posted $2.17 EPS. Applied Materials has set its Q1 2027 guidance at 4.150-4.550 EPS. As a group, equities research analysts forecast that Applied Materials will post 12.79 EPS for the current year.

Insiders Place Their Bets

In other news, Director Judy Bruner sold 1,000 shares of the stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $465.00, for a total value of $465,000.00. Following the completion of the transaction, the director owned 25,544 shares of the company’s stock, valued at approximately $11,877,960. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Brice Hill sold 7,500 shares of the stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $479.25, for a total value of $3,594,375.00. Following the completion of the transaction, the chief financial officer directly owned 128,613 shares of the company’s stock, valued at approximately $61,637,780.25. The trade was a 5.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 9,225 shares of company stock worth $4,454,181. 0.30% of the stock is owned by company insiders.

Institutional Trading of Applied Materials

A number of hedge funds and other institutional investors have recently made changes to their positions in AMAT. JFS Wealth Advisors LLC boosted its holdings in shares of Applied Materials by 4.3% in the second quarter. JFS Wealth Advisors LLC now owns 409 shares of the manufacturing equipment provider’s stock valued at $296,000 after acquiring an additional 17 shares in the last quarter. Innovative Asset Advisors Group LLC raised its holdings in Applied Materials by 2.1% during the second quarter. Innovative Asset Advisors Group LLC now owns 961 shares of the manufacturing equipment provider’s stock worth $695,000 after purchasing an additional 20 shares in the last quarter. Stonebridge Financial Group LLC raised its holdings in Applied Materials by 2.1% during the second quarter. Stonebridge Financial Group LLC now owns 1,003 shares of the manufacturing equipment provider’s stock worth $725,000 after purchasing an additional 21 shares in the last quarter. N.E.W. Advisory Services LLC raised its holdings in Applied Materials by 5.9% during the second quarter. N.E.W. Advisory Services LLC now owns 377 shares of the manufacturing equipment provider’s stock worth $273,000 after purchasing an additional 21 shares in the last quarter. Finally, IMG Wealth Management Inc. lifted its position in Applied Materials by 13.0% in the second quarter. IMG Wealth Management Inc. now owns 183 shares of the manufacturing equipment provider’s stock worth $132,000 after purchasing an additional 21 shares during the period. 80.56% of the stock is currently owned by institutional investors.

Recent Applied Materials Headlines

Investors following AMAT have been watching these headlines:

• Positive Sentiment: Management expects Semiconductor Systems sales to grow more than 40% in calendar 2026 and sees another record year in 2027, citing strong AI-chip demand. Customers are seeking earlier deliveries, while component and clean-room capacity—not demand—is limiting shipments. 2026 growth outlook
• Neutral Sentiment: Management expects China to account for less than a quarter of shipments in 2027. Reduced exposure may ease concerns about export restrictions, though China remains a source of uncertainty. China and demand commentary
• Negative Sentiment: At least 10 firms lowered price targets after the results, even as most maintained Buy ratings; Summit Insights downgraded the stock to Hold. The revisions may reflect valuation concerns and lingering caution about the chip-equipment sector. Broader weakness and concerns tied to Nvidia are also weighing on sentiment. Analyst target changes

About Applied Materials

Applied Materials, Inc. develops and supplies equipment, software and services used to manufacture semiconductors and advanced displays. Its technologies help customers build and process materials at the microscopic scale required for chips and other electronic products. The company’s offerings include systems for depositing, removing and modifying materials, as well as inspection, measurement and process-control tools. It also provides equipment and services for advanced semiconductor packaging and supports customers with maintenance, upgrades and manufacturing software.