Applied Materials stock price target raised to $220 from $200 at KeyBanc

Published 23/09/2025, 10:14
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - KeyBanc raised its price target on Applied Materials (NASDAQ:AMAT) to $220 from $200 while maintaining an Overweight rating on Tuesday. The semiconductor equipment giant, currently trading at $200.52, has shown remarkable momentum with a 15.55% gain in the past week alone. According to InvestingPro data, the stock’s RSI indicates overbought territory, suggesting careful entry point consideration.

The investment firm cited several factors affecting Applied Materials’ stock performance, noting that shares have lagged behind industry peers year-to-date. Despite this relative underperformance, InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.13, with strong profitability metrics. KeyBanc attributed the earlier underperformance to concerns over mature node demand headwinds, particularly in China, which represents the largest share of Applied Materials’ equipment sales.

KeyBanc also pointed out that Applied Materials had previously indicated lumpiness in leading-edge demand was creating elevated uncertainty and lower visibility for the second half of the calendar year. This announcement during earnings season was viewed negatively by investors and contributed to the company’s currently discounted valuation.

Despite these challenges, KeyBanc believes Applied Materials faces similar leading-edge catalysts as other companies in the semiconductor equipment sector. The firm noted that investor sentiment remains relatively muted due to more challenged trailing-edge exposure in China.

KeyBanc concluded that the China-related challenges are "generally well known" and are part of the reason for Applied Materials’ "more reasonable valuation" compared to industry peers. With a market capitalization of $159.74B and a P/E ratio of 23.93, the stock is currently trading near its InvestingPro Fair Value. Investors seeking deeper insights can access 18 additional ProTips and comprehensive valuation metrics through InvestingPro’s detailed research report.

In other recent news, Applied Materials announced a quarterly cash dividend of $0.46 per share, payable on December 11, 2025, to shareholders of record as of November 20, 2025. This marks the continuation of its dividend growth strategy, having increased its dividend for eight consecutive years. Meanwhile, Mizuho downgraded Applied Materials from Outperform to Neutral, citing market share concerns in key product segments that contribute significantly to the company’s revenue. In contrast, Cantor Fitzgerald maintained its Overweight rating, keeping a positive outlook and a price target of $200.00 despite recent market challenges. Similarly, TD Cowen reiterated its Buy rating with a $200.00 price target, noting industry concerns about China wafer fabrication equipment and potential softness in leading-edge foundry/logic. However, Daiwa Securities downgraded the stock to Neutral due to weaker-than-expected quarterly results and declining semiconductor equipment spending. The downgrade was attributed to issues with major customers like Intel and Samsung and sluggish demand outside AI applications. These developments highlight varied analyst perspectives amid evolving market conditions for Applied Materials.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.