Positive Outlook for Applied Materials Driven by Advanced Technology Demand and Market Positioning

In a report released today, Harlan Sur from J.P. Morgan maintained a Buy rating on Applied Materials (AMAT – Research Report), with a price target of $210.00.

Harlan Sur’s rating is based on several positive factors influencing Applied Materials’ performance. The company has shown resilience in its financial results, with better-than-expected gross margins and earnings per share, despite facing challenges in mature technology sectors. This is largely due to strong demand in advanced technology areas such as foundry, logic, and DRAM, as well as technology transitions in NAND, which have offset weaker spending in older technology segments, particularly in China.
Furthermore, Applied Materials is positioned to benefit from growth drivers like leading-edge technology advancements, including 2nm foundry and logic, and transitions in DRAM and NAND technologies. The company’s exposure to the fast-growing display market and its ability to gain market share in the silicon business are also expected to contribute to its growth. Despite some headwinds, such as trade dynamics and restrictions affecting mature technology spending, these growth opportunities support the Buy rating with a price target of $210, reflecting confidence in the company’s future performance.

In another report released today, Needham also maintained a Buy rating on the stock with a $195.00 price target.