AMAT seen broadly positive after fiscal Q3 results amid AI demand
Analysts stayed broadly positive on Applied Materials after its fiscal third-quarter results, citing AI-led semiconductor demand but flagging margin pressure, elevated expectations, and varying target moves including Bernstein to $700.
Analysts remained broadly positive on AMAT after fiscal third-quarter results, citing AI-led semiconductor demand while noting margin pressure and elevated expectations.
The Details: Demand outlook: Bernstein and JPMorgan cited strength in foundry and logic, advanced packaging, DRAM, and wafer-fab equipment demand, with AI supporting spending.
Growth guidance: Bernstein highlighted fourth-quarter guidance and managements expectation that 2026 equipment-sales growth will exceed the roughly 30% level previously discussed.
Margin caution: BofA and UBS cited weaker gross-margin leverage and conservative near-term guidance; Deutsche Bank called the outlook hazy.
Target changes: Bernstein raised its target to $700, JPMorgan to $660, while B.
Riley, BofA, UBS, Deutsche Bank, and Morgan Stanley lowered targets.