Applied Materials stock price target raised to $44 by Macquarie

Investing.com - Macquarie raised its price target on Applied Materials (NASDAQ:AMAT) to $44.00 from $39.00 while maintaining an Outperform rating. The semiconductor equipment giant is currently trading at $236.26, near its 52-week high of $242.50, with a market capitalization of $188.22 billion. According to InvestingPro data, the stock appears slightly overvalued based on its Fair Value assessment.

The firm noted an "inflection point" as RevPAR (Revenue Per Available Room) decline narrowed to 2.4% in the third quarter of 2025, improving from a 4.3% decline in the second quarter. Occupancy rates fell 0.1 percentage points year-over-year, while average daily rates decreased by 1.9%. It’s worth noting that Applied Materials, a prominent player in the Semiconductors & Semiconductor Equipment industry, has shown impressive momentum with a 47.31% price return over the past six months.

Macquarie highlighted Applied Materials’ retail business performance, which saw revenue increase by 76.4% year-over-year in Q3 2025. The company’s Deep Sleep series led the pillow and comforter category across multiple e-commerce platforms during both the third quarter and Double Eleven shopping event.

Management raised its full-year retail revenue growth forecast to 65% year-over-year, up from the previous projection of 60%, according to Macquarie’s report.

The firm also noted that Applied Materials is on track to reach its target of 2,000 hotels, with Atour 4.0 achieving over 500 yuan in RevPAR, while the company expects to operate 170-180 Atour Light hotels by year-end with a long-term goal of 1,000 locations.

In other recent news, Applied Materials reported strong financial results for the October quarter, with revenue reaching $6.80 billion and earnings per share at $2.17, surpassing consensus estimates of $6.68 billion and $2.11, respectively. The company’s guidance for the January quarter also exceeded expectations, with projected revenue of $6.85 billion and earnings per share of $2.18, compared to analyst forecasts of $6.78 billion and $2.14. Cantor Fitzgerald reiterated its Overweight rating on Applied Materials, maintaining a $300 price target. Stifel also reiterated a Buy rating with a $250 price target, noting the company’s fiscal fourth-quarter results modestly exceeded estimates, with strength in the DRAM segment. However, Craig-Hallum downgraded the stock from Buy to Hold, citing expectations for a similar business environment in fiscal year 2026 as last year. UBS upgraded Applied Materials from Neutral to Buy, raising its price target to $285, based on a strong outlook for wafer fab equipment demand in the coming years. Despite these positive notes, UBS maintained a Neutral rating earlier, expressing concerns over market share losses, particularly in China.

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