Applied Materials shares fall despite Q3 revenue beat-and-raise
Applied Materials (AMAT) reported Q3 revenue of $9.12 billion versus Street expectations of $9.02 billion, alongside fiscal Q4 midpoint revenue guidance of $10.25 billion, but shares slipped following analyst notes.
Wall Street wanted more than the "unprecedented visibility" Applied Materials Inc (NASDAQ: AMAT ) boasted about in its third-quarter (Q3) results on Thursday. Shares of the company slipped on Friday on the heels of several analyst reports: JPMorgan analyst Harlan Sur maintained an Overweight rating, and raised the price target from $515 to $660. Needham analyst Charles Shi reiterated a Buy rating and price target of $740. Check out other analyst stock ratings.
JPMorgan: Applied Materials’ growth stems from record Semi Systems strength, Sur said in a note. Margins held above 50%, he added. 02 billion. 04 billion DRAM revenues surged 52% year-on-year to a record high.
4%. This marked the 13th consecutive quarter of year-on-year expansion in gross margins. 4%. 62 billion, reflecting "continued acceleration of customer demand," the analyst further stated.
Needham: Applied Materials reported a beat-and-raise quarter. Yet, its guidance appears to have fallen short of "heightened buyside expectations," Shi said. The revenue results "set a new sequential record," with Semiconductor Systems at $7 billion, he added. 25 billion represents 12% sequential growth and points to further growth in Semi Systems, the analyst stated.
While the company did not provide guidance for the fiscal fourth quarter, the commentary suggests that "Semi Systems should grow more than 40% YoY in CY26," he further noted. 22 at the time of publication on Friday. Read Also: Micron and 15 Other Stocks To Play The AI Buildout Race: They Are Still 20% Below Highs Image: Shutterstock