Evercore ISI Group Cuts AMAT Price Target to $590

Evercore ISI Group has reiterated its Outperform rating on Applied Materials, setting a new price target of $590, a 39.83% upside from the current price.

By TradeTexts Research Desk · Published Oct 15, 2026, 9:18 PM EDT · Updated Oct 17, 2026, 8:15 AM EDT

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Evercore ISI Group cut its price target on Applied Materials, Inc. ($AMAT) to $590 from $700 on October 15, 2026, and rates the stock "Outperform".

Since the rating, $AMAT is down 4.8% to date (from the $430.01 close on Oct 15, 2026).

AMAT Applied Materials, Inc.

$409.29 +52.77% year to date

Daily close · Oct 16, 2026

Key Points

On October 15, 2026, Evercore ISI Group maintained its Outperform rating on Applied Materials, Inc. with a price target of $590, down from $700.
Evercore ISI Group's $590 price target implies 39.83% upside from Applied Materials, Inc.'s ($AMAT) current $421.93 share price.
As of October 16, 2026, Applied Materials is trading at about $421.93, which is 28.5% below Evercore's new target.
Applied Materials has a trailing twelve-month revenue of about $30.8 billion and an earnings per share of $11.60.

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Evercore ISI Group has reiterated its Outperform rating on Applied Materials, Inc. (AMAT) on October 15, 2026, adjusting the price target from $700 to $590. This move comes as the stock trades significantly below the new target, currently at $421.93 as of October 16, 2026.

Other Institutional Activity in Applied Materials

Blackrock Inc. holds 80,212,518 shares of Applied Materials, valued at about $32.8 billion, after increasing its position by 1,239,871 shares. Vanguard Capital Management LLC owns 51,848,358 shares worth roughly $21.2 billion, having added 268,217 shares. State Street Corporation has 38,240,019 shares valued at approximately $15.7 billion, increasing its holdings by 731,418 shares. Invesco Ltd. raised its stake by 1,900,912 shares, bringing its total to 28,265,844 shares worth about $11.6 billion. Meanwhile, Capital Research Global Investors reduced its holdings by 7,296,037 shares, ending with 22,159,097 shares valued at around $9.1 billion.

Applied Materials, Inc. Stock Down 1.9%

Applied Materials is currently trading well below its new price target, which indicates potential challenges ahead for the stock. The shares are significantly lower than the target set by Evercore ISI, reflecting a 28.5% gap. The stock has a beta of 1.597, suggesting it is more volatile than the market, which could impact investor sentiment.

12-month forecast

$AMAT price target

Applied Materials, Inc. daily closes and this analyst's $590 target. Not advice.

Recent Earnings

For the trailing twelve months, Applied Materials reported revenue of approximately $30.8 billion and an earnings per share of $11.60. The company's return on equity stands at 41.1%, and it has a net margin of 30.1%. The next earnings report is expected on November 12, 2026.

Earnings drift grade

Outlook vs expectations on the last report — not price action.

A- 83/100

Reported May 14, 2026

Forward outlook
20 analysts raised price targets.
EPS & revenue
EPS beat estimates by 5.9%. Revenue beat estimates by 12.9%.
Profit surprise
EBITDA beat by 52 percent. Operating income beat by 24 percent.
Pre-earnings setup
Bar was high, analysts already very bullish.
Analyst signal
20 target raises.
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.

Insider Buying and Selling at Applied Materials, Inc.

Insider trading activity includes Chief Executive Officer Gary E. Dickerson, who sold 78,321 shares before June 30, 2026, valued at about $55.6 million. Chief Financial Officer Brice Hill sold 7,500 shares on August 25, 2026, for approximately $3.6 million at an average price of $479.25. Director Judy Bruner sold 1,000 shares on September 8, 2026, at $465, totaling about $465,000. Officer Adam Sanders sold 725 shares on October 2, 2026, for approximately $394,807 at an average price of $544.56.

Analysts Set New Price Targets

On October 15, 2026, Evercore ISI Group maintained its Outperform rating with a target of $590, down from $700. Earlier, Mizuho also maintained its Outperform rating with a target of $590 on August 25, 2026. UBS set a Buy rating with a target of $695, while Morgan Stanley maintained an Equal-Weight rating with a target of $563. The consensus among analysts suggests a positive outlook, with a mean price target of approximately $600.

About Applied Materials

Applied Materials, Inc. is a leader in materials engineering solutions for the semiconductor and related industries. The company provides equipment, services, and software that help manufacturers produce high-performance electronic devices. Its operations span across various regions, including the United States, China, Korea, and Europe.

Bottom Line

Investors should watch for Applied Materials' upcoming earnings report on November 12, 2026, which could provide further insights into its performance amid changing analyst ratings and market conditions. Evercore ISI's recent reiteration of its rating emphasizes the gap between the stock's current price and its target, highlighting the challenges the company may face in the near term.