Applied Materials: Positioned to Outgrow Semi Capex on Advanced Node Exposure and Earnings Acceleration Through 2027

TD Cowen analyst Krish Sankar maintained a Buy rating on Applied Materials today and set a price target of $450.00.

Krish Sankar has given his Buy rating due to a combination of factors, notably Applied Materials’ strong positioning in the wafer fab equipment cycle and exposure to high‑growth technology transitions. He highlights that AMAT is set to benefit from increasing deposition and etch intensity tied to advanced DRAM nodes and the shift to gate‑all‑around foundry architectures, supporting his conviction that the company can outgrow broader semi capex trends.

He also emphasizes AMAT’s recent earnings outperformance, its expectation for a pronounced revenue acceleration in the second half of CY26, and management’s outlook for semi systems sales to rise more than 20% that year. On top of that, he underscores rising longer‑term earnings power into CY27, a roughly 25% earnings CAGR, and robust growth in advanced packaging, all of which he believes justify a premium valuation and support his $450 price target.

In another report released today, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $377.00 price target.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMAT in relation to earlier this year.