Applied Materials (AMAT, $128.66) gets analysts' optimism, after Q2 earnings beat
Applied Materials got bullish views from several analysts, following its fiscal second-quarter earnings beat.
Morgan Stanley analyst Joseph Moore boosted the price target on the semiconductor equipment company’s shares to $139 from $137.Moore maintained an Equal-weight rating on the shares.
Moore noted that tight supply conditions led to better near-term spending conditions, thereby boosting Applied Materials’ performance relative to peers in the quarter. However, even as the company’s guidance implied continued wafer fab equipment, or WFE, growth through 2022, Morgan Stanley sees the growth plateauing ahead in the second half of 2021.
Needham analyst Quinn Bolton reiterated a Buy rating and $153 price target. Bolton mentioned that quarterly results were solid, and the guidance for a sequential growth in third quarter results implies about 40% year-over-year growth in Semiconductor Systems Group revenues in calendar year 2021. According to the analyst, Applied Materials will see mid- to high-single digit growth in calendar year 2022 given semiconductor industry megatrends.
"We believe that AMAT's stock will find support at its current level of 16.8x our CY22 EPS estimate, and that the risk/reward is favorable, " Bolton noted.
Credit Suisse analyst John Pitzer reiterated an Outperform rating on Applied Materials shares along with a $175 price target.
Pitzer cited second-quarter results that surpassed expectations and the strong third-quarter guidance – which, according to the analyst, reflect rising cost of capacity without 450 mm, driving structural WFE growth.
But Pitzer mentions risks from slowing EPS revisions in the second half of 2021 and WFE pauses in 2023. Nevertheless, the analyst indicated that structural foundations of over $100 billion in WFE and $11-plus EPS are becoming more certain.
AMAT in upward trend: 10-day moving average crossed above 50-day moving average on October 02, 2026
The 10-day moving average for AMAT crossed bullishly above the 50-day moving average on October 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 23, 2026. You may want to consider a long position or call options on AMAT as a result. In 65 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for AMAT just turned positive on September 21, 2026. Looking at past instances where AMAT's MACD turned positive, the stock continued to rise in 37 of 45 cases over the following month. The odds of a continued upward trend are 82%.
AMAT moved above its 50-day moving average on September 29, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.45% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in 251 of 316 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
The Aroon Indicator for AMAT entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 9 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 25 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. AMAT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 37 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock slightly better than average.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (15.083) is normal, around the industry mean (8.078). P/E Ratio (41.998) is within average values for comparable stocks, (161.623). Projected Growth (PEG Ratio) (0.967) is also within normal values, averaging (0.801). Dividend Yield (0.004) settles around the average of (0.002) among similar stocks. P/S Ratio (10.764) is also within normal values, averaging (27.897).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a manufacturer of equipment and software for the semiconductor industries
Industry ElectronicProductionEquipment
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