Citigroup Reiterates Buy Rating for Applied Materials, Inc.
Citigroup maintains its buy stance on Applied Materials, Inc., setting a $710 price target.
Key Points
- Citigroup reiterated its buy rating on Applied Materials, Inc. with a price target of $710 on June 17, 2026.
- Applied Materials, Inc. trades at around $568.23, with a market cap of $451.15 billion and a P/E ratio of 53.46.
- Insider sales by key executives include 50,000 shares by President Raja Prabu on June 4, 2026.
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Citigroup has reiterated its buy rating on Applied Materials, Inc. (NasdaqGS:AMAT), maintaining a price target of $710 as of June 17, 2026. The company's stock is currently trading near $568.23.
What Changed in Citigroup's Applied Materials Position
Citigroup's analyst, Atif Malik, continues to view Applied Materials positively, with a reiterated buy rating and a price target of $710. This reflects Citigroup's confidence in the company's potential growth and market position.
Other Institutional Activity in Applied Materials
BlackRock, Inc. increased its stake in Applied Materials by adding 3,715,744 shares, reaching a total of 78,974,833 shares valued at approximately $26.99 billion. Vanguard Capital Management LLC also made a significant addition, holding 51,577,799 shares worth about $17.63 billion. Meanwhile, State Street Corp reduced its holdings by 423,673 shares, now holding 37,506,950 shares valued at $12.82 billion. Capital Research Global Investors cut its position by 3,251,625 shares, ending with 29,455,424 shares valued at $10.07 billion. Geode Capital Management, LLC increased its stake by 3,313,100 shares to a total of 21,921,798 shares, valued at around $7.48 billion.
Applied Materials, Inc. Stock Up 4.1%
Shares of Applied Materials, Inc. are trading near $568.23. The company boasts a market capitalization of $451.15 billion and has a P/E ratio of 53.46. The stock has experienced a 52-week low of $154.47 and a high of $600.91. It maintains a 50-day moving average of $436.27 and a 200-day moving average of $313.36. Applied Materials has a current ratio of 2.51 and a quick ratio of 1.62, with a debt-to-equity ratio of 30.40.
Recent Earnings
In its latest earnings report, Applied Materials posted revenue of $29.02 billion with a growth rate of 11.4%. The company achieved a net margin of 29.3% and a return on equity of 39.7%. Its earnings per share stood at $10.63. The next earnings release is scheduled for August 13, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
20 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 5.9%. Revenue beat estimates by 12.9%.
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Profit surprise
EBITDA beat by 52 percent. Operating income beat by 24 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
20 target raises.
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Earnings quality
Gross margin up 0.8 points. Operating margin up 1.3 points. Positive free cash flow.
Earnings Call Summary
Applied Materials delivered record revenue of $7.91 billion this quarter driven by strong artificial intelligence infrastructure demand. The company sees its highest gross margin in over 25 years at 50 percent. Management highlighted that artificial intelligence is diversifying beyond training into new areas like agentic applications, which increases demand for memory and processors, and they expect continued strong growth into 2027 and beyond as customers build new factories.
Guidance Applied expects about $8.95 billion in revenue next quarter, up nearly 23 percent from last year. The company expects earnings per share of $3.36, up nearly 36 percent. Management raised its full-year equipment growth outlook to more than 30 percent as artificial intelligence demand accelerates and customers add production capacity.
Clearly positive report. Results were better than expected, though the forward reset is not the strongest.
Dividend
Applied Materials offers an annual dividend rate of $2.12, yielding 0.37% with a payout ratio of 17.31%.
Insider Buying and Selling at Applied Materials, Inc.
Recent insider activity at Applied Materials includes significant sales by key executives. On June 4, 2026, Raja Prabu, President of the Semiconductor Products Group, sold 50,000 shares at an average price of $505.28. Additionally, SVP and CFO Hill Brice sold 2,500 shares on June 3, 2026, at $498.86.
Analysts Set New Price Targets
On June 17, 2026, Citigroup maintained its buy rating for Applied Materials with a target price of $710. Other analysts, including Barclays and UBS, also maintained buy ratings with targets of $590 and $570, respectively. The consensus among 36 analysts is a buy rating, with an average target price of $517.28.
About Applied Materials, Inc.
Applied Materials, Inc. is a leader in materials engineering solutions and equipment for the semiconductor industry. Headquartered in Santa Clara, California, the company operates through its Semiconductor Systems and Applied Global Services segments, providing equipment, services, and software to enhance semiconductor manufacturing processes. Led by CEO Gary E. Dickerson, Applied Materials employs around 36,400 people worldwide.
Bottom Line
Citigroup's reaffirmation of its buy rating on Applied Materials, Inc. underscores confidence in the company's growth prospects. Investors closely watch these ratings and targets as part of their decision-making process. It's important to note that analyst ratings are based on past data and projections, and actual performance may vary.
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