Applied Materials price target raised to $450 from $400 at B. Riley

B. Riley raised the firm’s price target on Applied Materials (AMAT) to $450 from $400 and keeps a Buy rating on the shares. The Q1 results and F2Q26 outlook exceeded consensus for sales, gross margin, and EPS, driven by strong execution and operational momentum, the analyst tells investors in a research note. The company anticipates 20%+ year over year growth in Systems and low double digit Services in CY26, with high-growth Foundry, DRAM, and Advanced Packaging offsetting flat China and iCAPS sales, potentially pushing gross margins above 50% in FY27 and supporting stronger-than-expected FY26-FY27 revenue growth, the firm says.