Krish Sankar, an analyst from TD Cowen, maintained the Buy rating on Applied Materials. The associated price target was raised to $260.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Krish Sankar’s rating is based on the anticipation of a significant recovery in the semiconductor equipment market, particularly in the second half of 2026. Applied Materials is well-positioned to benefit from this expected uptick due to its broad-based portfolio, which aligns with the projected growth in wafer fab equipment (WFE) spending. The company’s strong performance in the recent quarter, with revenues and earnings surpassing expectations, further supports this positive outlook.
Moreover, the semiconductor industry is experiencing record-high profitability, with companies like Micron and TSMC reporting substantial gross margins. This profitability trend is expected to continue, providing a favorable environment for Applied Materials. The anticipated recovery in leading-edge foundry and DRAM, where Applied Materials holds a significant market share, also contributes to the optimistic projection for the company’s growth in the coming years.
In another report released on November 11, Stifel Nicolaus also reiterated a Buy rating on the stock with a $250.00 price target.