Wells Fargo Rates Applied Materials (AMAT) buy, $715 Price Target
Wells Fargo sticks to its positive stance on Applied Materials, Inc. as chip equipment firms draw varied price targets from major Wall Street desks, a 21.40% upside from the current price.
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Wells Fargo rated Applied Materials, Inc. ($AMAT) "buy" with a $715 price target on June 22, 2026.
Since the rating, $AMAT is up 8.5% after 1 week, down 13.5% after 1 month and down 36.0% to date (from the $639.50 close on Jun 22, 2026).
AMAT
Applied Materials, Inc.
Key Points
- Wells Fargo reaffirmed its buy rating on Applied Materials, Inc. (NasdaqGS: AMAT) on June 22, 2026, setting a target of $715.00.
- Wells Fargo's $715 price target implies 21.40% upside from Applied Materials, Inc.'s ($AMAT) current $588.97 share price.
- Applied Materials trades near $588.97, backed by trailing revenue of $30.84 billion and strong profitability metrics.
- A wave of recent analyst updates features targets from Needham, Evercore ISI Group, and RBC Capital ahead of November earnings.
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Wells Fargo Restates Buy View on Applied Materials
Wells Fargo reaffirmed its upbeat stance on Applied Materials, Inc. (NasdaqGS: AMAT) on June 22, 2026, keeping a buy rating and laying out a $715.00 price target. The update arrives as major financial institutions continue reviewing valuations across the semiconductor equipment sector. The firm's target sits above where the stock recently trades, highlighting differing views on how much upside remains for major chip tool makers.
Wells Fargo vs. the S&P 500
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Stock Price Action and Valuation Context
Shares of Applied Materials recently changed hands at $588.97. That price rests well above the 52-week low of $196.20, though it stays below the peak of $739.67 reached earlier in the cycle. The company commands a market capitalization of $368.42 billion. Trading activity shows the shares moving above their 200-day average of $417.26 and their 50-day average of $498.35.
$AMAT price target
Applied Materials, Inc. daily closes and this analyst's $715 target. Not advice.
Wall Street Analyst Coverage and Recent Target Changes
Analyst updates have kept a steady spotlight on the chip equipment provider through the autumn months. On October 16, 2026, Needham maintained its buy rating while trimming its target to $580.00 from $740.00. Evercore ISI Group kept an outperform rating on October 15, 2026, shifting its target to $590.00 from $700.00. RBC Capital reiterated an outperform rating with a $600.00 target on October 14, 2026. Earlier in the fall, Morgan Stanley maintained an equal-weight rating on September 28, 2026, with a target of $563.00, while UBS held a buy rating on September 1, 2026, raising its target to $695.00. Mizuho maintained an outperform rating on August 25, 2026, with a $590.00 target, and Argus Research kept a buy rating with a $600.00 target on August 18, 2026. UBS also maintained a buy rating on August 14, 2026, at a $675.00 target.
Financial Health and Earnings Profile
The company generated $30.84 billion in revenue over the trailing period, alongside a revenue growth rate of 24.8%. Profitability remains strong, as the company recorded a net margin of 30.05% and a return on equity of 41.07%. Earnings per share stand at $11.60. Investors will watch for the company's next earnings report scheduled for November 12, 2026, to gauge ongoing demand for wafer fabrication gear.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
20 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 5.9%. Revenue beat estimates by 12.9%.
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Profit surprise
EBITDA beat by 52 percent. Operating income beat by 24 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
20 target raises.
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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.
Dividend Payments and Capital Return
Income-focused investors receive an annual dividend rate of $2.12 per share, translating to a dividend yield of 0.48%. The payout ratio sits at a modest 16.48%, leaving ample earnings to reinvest back into research and manufacturing capacity for advanced semiconductor nodes.
What Applied Materials Does
Headquartered in Santa Clara, California, Applied Materials provides specialized equipment, services, and software used to manufacture microchips. Its systems handle essential manufacturing steps like etching, deposition, and wafer inspection for chipmakers around the world. The business operates through segments focused on semiconductor systems and applied global services.
Looking Ahead to Upcoming Reports
Market participants will track upcoming analyst notes and the November earnings release for fresh clues on semiconductor capital spending trends. While individual firm targets move up and down, the broader consensus keeps a generally positive outlook on the equipment maker's operational trajectory.
Related Filing Alerts
Source: Wells Fargo's rating change on $AMAT (Jun 22, 2026). Written by software, not financial advice. How we make alerts