Applied Materials, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Atif Malik from Citi maintained a Buy rating on the stock and has a $250.00 price target.
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Atif Malik has given his Buy rating due to a combination of factors that highlight the positive outlook for Applied Materials. The company has reported results that exceeded expectations, indicating strong performance in the semiconductor equipment sector. This is driven by anticipated growth in wafer fabrication equipment (WFE) in 2026, particularly in advanced technologies like leading edge F/L and DRAM, despite some challenges in the Chinese market.
Furthermore, Applied Materials has improved its demand visibility significantly, extending up to 1-2 years, which is a positive indicator for future growth. The company’s management has been transparent about the dynamics in China, and despite expecting a decline in revenue from this region, the overall outlook remains strong. Malik has also adjusted the earnings per share (EPS) estimates upwards for the coming years and increased the target price based on market-multiple expansion, reinforcing his confidence in the stock’s potential for a 17.3% return.
According to TipRanks, Malik is a top 25 analyst with an average return of 35.7% and a 76.39% success rate. Malik covers the Technology sector, focusing on stocks such as Nvidia, Apple, and Arista Networks.