Positive Outlook for Applied Materials Driven by Strong Client Contributions and Financial Resilience

Analyst Joseph Quatrochi from Wells Fargo maintained a Buy rating on Applied Materials (AMAT – Research Report) and keeping the price target at $200.00.

Joseph Quatrochi’s rating is based on the strong performance of Applied Materials in its recent quarter, particularly highlighted by significant revenue contributions from major clients like TSMC and Samsung. TSMC’s revenue contribution increased to 21% of AMAT’s total revenue, marking a substantial year-over-year growth of 150%, while Samsung’s contribution also showed a notable year-over-year increase of 65%.
Additionally, despite some areas of revenue decline when excluding these major clients, the overall financial health of the company is underscored by a solid inventory position and a manageable level of unsatisfied performance obligations. These factors suggest a positive outlook for AMAT, justifying a Buy rating as the company demonstrates resilience and growth potential in key segments.

In another report released on May 19, DBS also upgraded the stock to a Buy with a $207.30 price target.

Based on the recent corporate insider activity of 44 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.