
Applied Materials (AMAT) Stock Forecast & Price Target
Applied Materials (AMAT) Analyst Ratings
Bulls say
Applied Materials, as the largest semiconductor wafer fabrication equipment manufacturer, is poised for a positive outlook due to its strong market share leadership in deposition and a broad portfolio across the WFE ecosystem. Despite modest growth of 3% in revenue from China year-over-year, the company's performance indicates potential for higher peak revenue and profitability as WFE spending is expected to accelerate in the 2025-2026 timeframe. Furthermore, Applied is anticipated to achieve approximately 15% year-over-year growth in ex-China revenue, positioning it favorably against peers and underscoring its ability to capitalize on leading-edge capacity investments amid evolving market conditions.
Bears say
Applied Materials is experiencing a significant decline in its order backlog, with a reported $549 million reduction attributed to new China export controls, indicating a strain on future revenue streams. The company anticipates that its revenue from China will decrease from 31% to 26% of total revenue in the upcoming quarter, further contributing to guidance weaknesses and overall negative outlook. Additionally, projections for the wafer fabrication equipment market suggest that both 2025 and 2026 revenues will fall below $100 billion, exacerbating concerns regarding Applied's market share and profitability amid a challenging competitive landscape.
This aggregate rating is based on analysts' research of Applied Materials and is not a guaranteed prediction by Public.com or investment advice.
Applied Materials (AMAT) Analyst Forecast & Price Prediction
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