RBC Capital Rates Applied Materials (AMAT) Outperform

RBC Capital maintains its bullish outlook on Applied Materials, setting a price target of $600, a 42.20% upside from the current price.

By TradeTexts Research Desk · Published Oct 15, 2026, 9:18 PM EDT · Updated Oct 16, 2026, 1:55 PM EDT

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RBC Capital rated Applied Materials, Inc. ($AMAT) "Outperform" with a $600 price target on October 14, 2026.

Since the rating, $AMAT is down 8.4% to date (from the $446.63 close on Oct 14, 2026).

AMAT Applied Materials, Inc.

$409.29 +52.77% year to date

Daily close · Oct 16, 2026

Key Points

On October 14, 2026, RBC Capital reiterated its Outperform rating on Applied Materials, Inc. (AMAT) with a price target of $600.
RBC Capital's $600 price target implies 42.20% upside from Applied Materials, Inc.'s ($AMAT) current $421.93 share price.
Shares of Applied Materials recently traded at $421.93, which is about 29.7% below RBC's target.
The company has a trailing twelve-month revenue of $30.8 billion and an impressive net margin of 30.1%.

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RBC Capital reiterated its Outperform rating on Applied Materials, Inc. (AMAT) on October 14, 2026, maintaining a price target of $600. This target represents a substantial gap from the recent trading price of $421.93, indicating a potential upside for investors.

Other Institutional Activity in Applied Materials

Several other institutional investors have also been active in Applied Materials. Blackrock Inc. holds 80,212,518 shares, worth about $32.8 billion, after increasing its stake by 1,239,871 shares. Vanguard Capital Management LLC owns 51,848,358 shares valued at approximately $21.2 billion, having added 268,217 shares. State Street Corporation has 38,240,019 shares, worth about $15.7 billion, following an increase of 731,418 shares. Invesco Ltd. grew its holdings by 1,900,912 shares, bringing its total to 28,265,844 shares valued at $11.6 billion. Meanwhile, Capital Research Global Investors reduced its stake by 7,296,037 shares, now holding 22,159,097 shares worth about $9.1 billion.

Applied Materials, Inc. Stock Down 1.9%

Applied Materials closed at an unspecified price on the event date, but its recent trading at $421.93 is about 29.7% below RBC's target of $600. This discrepancy may suggest a potential opportunity for recovery in the stock price, especially given the company's strong fundamentals and growth prospects.

12-month forecast

$AMAT price target

Applied Materials, Inc. daily closes and this analyst's $600 target. Not advice.

Recent Earnings

Applied Materials reported a trailing twelve-month revenue of $30.8 billion, with a net margin of 30.1% and a return on equity of 41.1%. The company is set to announce its next earnings on November 12, 2026, which may provide further insights into its performance.

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 at Applied Materials shows activity from several executives. CEO Gary E. Dickerson sold 78,321 shares for a total of about $55.6 million on June 30, 2026. CFO Brice Hill sold 7,500 shares at an average price of $479.25 on August 25, 2026, totaling approximately $3.6 million. Director Judy Bruner sold 1,000 shares at $465.00 on September 8, 2026, for about $465,000. Lastly, Officer Adam Sanders sold 725 shares at an average price of $544.56 on October 2, 2026, valued at around $394,807.

Analysts Set New Price Targets

On October 14, 2026, RBC Capital reiterated its Outperform rating on Applied Materials with a price target of $600. This follows earlier ratings from other firms, including Argus Research, which maintains a Buy rating with a target of $600, and Mizuho, which also holds an Outperform rating with a target of $590.

About Applied Materials

Applied Materials, Inc. provides materials engineering solutions and equipment to the semiconductor industry. It operates through two main segments: Semiconductor Systems and Applied Global Services. The company serves clients globally, including in the U.S., China, and Europe.

Bottom Line

Investors will be watching for Applied Materials' next earnings report on November 12, 2026, to gauge its performance. With RBC Capital's reiterated Outperform rating and a significant price target above the recent trading price, there may be opportunities for growth in the stock.