William Blair analyst Jed Dorsheimer has maintained their neutral stance on AMAT stock, giving a Hold rating today.
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Jed Dorsheimer has given his Hold rating due to a combination of factors impacting Applied Materials. The company recently missed its revenue expectations, largely due to challenges in the Chinese market, where capacity digestion and trade restrictions are affecting performance. Additionally, the anticipated demand from AI-related equipment orders has not yet materialized, adding to the uncertainty.
Despite these challenges, Applied Materials is trading at a valuation below its peers, which reflects a balanced risk/reward scenario given its strong position in advanced semiconductor equipment. However, the company’s guidance for the upcoming quarter is lower than expected due to macroeconomic uncertainties, particularly in China. While the company is making strides in AI and power efficiency technologies, the lack of near-term visibility into demand has led to a cautious approach, warranting a Hold rating until clearer growth signals emerge.
In another report released today, Bank of America Securities also downgraded the stock to a Hold with a $180.00 price target.
Based on the recent corporate insider activity of 39 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.