
Applied Materials (AMAT) Stock Forecast & Price Target
Applied Materials (AMAT) Analyst Ratings
Bulls say
Applied Materials, recognized as the largest semiconductor wafer fabrication equipment manufacturer globally, is positioned to enhance its revenue and profitability through improved financial performance in upcoming cycles, despite a modest 3% year-over-year revenue growth in China for CY24. The company is expected to benefit from increased investments in advanced technology areas such as etching and deposition, driven by rising demand from its key customers, which include major chipmakers like TSMC and Intel. Moreover, with approximately 23% of its sales derived from its Applied Global Services segment and a substantial installed tool base, Applied Materials is anticipated to experience robust growth in its service revenue, bolstering overall financial stability during the anticipated cyclical recovery.
Bears say
Applied Materials has experienced a significant 27% decline in share price since early July 2024, highlighting investor concerns amid weakening market conditions. Key risks influencing a negative outlook include anticipated reductions in capital expenditures from Chinese suppliers, ongoing supply chain challenges, and an overall decline in global semiconductor demand, which may hinder revenue growth. Additionally, the disclosure of a $549 million reduction in order backlog and potential impact from new China export controls further exacerbate uncertainties surrounding future earnings and operational stability.
This aggregate rating is based on analysts' research of Applied Materials and is not a guaranteed prediction by Public.com or investment advice.
Applied Materials (AMAT) Analyst Forecast & Price Prediction
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