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With a market cap of $126.6 billion, Applied Materials, Inc. (AMAT) engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. Headquartered in Santa Clara, California, the company operates through three segments: Semiconductor Systems, Applied Global Services, and Display.
The company has underperformed the broader market over the past year and in 2025. AMAT’s stock prices have declined 24.8% over the past 52 weeks and 4.1% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 9.2% over the past year and plummeted 3.7% on a YTD basis.
Narrowing the focus, AMAT has also underperformed the iShares Semiconductor ETF’s (SOXX) 12.4% decline over the past 52 weeks but has outperformed SOXX’s 11% fall this year.
AMAT shares surged 1.9% following the release of its Q1 earnings on Feb. 13. The company reported a notable 6.8% year-over-year growth in net revenues to $7.2 billion, exceeding the Street’s expectations. Meanwhile, its adjusted EPS increased 11.7% year-over-year to $2.38, surpassing the consensus estimates by 4.4%. Furthermore, the company observed notable improvement in margins with its adjusted gross margin expanding 1% compared to the year-ago quarter to 48.9% and its adjusted operating margin expanding 1.1% to 30.6%.
For the current year ending in October 2025, analysts predict AMAT’s EPS to rise 8.2% year over year to $9.36. Moreover, the company has surpassed analysts’ consensus estimates in each of the past four quarters, which is impressive.
Among the 33 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 22 “Strong Buy” ratings, two “Moderate Buys,” eight “Holds,” and one “Strong Sell.”
The configuration is more bullish than two months ago, when 20 analysts rated it as a “Strong Buy.”
On Apr. 22, Barclays PLC (BCS) analyst Thomas O’Malley maintained a “Hold” rating on Applied Materials and set a price target of $160, reducing from its earlier target of $190.
AMAT’s mean price target of $203.74 indicates a premium of 30.6% from the current market prices. Its Street-high target of $250 suggests a robust 60.3% upside potential from current price levels.
