Needham Cuts Applied Materials (AMAT) Price Target to $580
Needham has reaffirmed its Buy rating on Applied Materials, lowering its price target to $580, a 37.46% upside from the current price.
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Needham cut its price target on Applied Materials, Inc. ($AMAT) to $580 from $740 on October 16, 2026, and rates the stock "Buy".
AMAT
Applied Materials, Inc.
Key Points
- On October 16, 2026, Needham reiterated its Buy rating on Applied Materials, Inc. (AMAT) and adjusted its price target to $580 from $740.
- Needham's $580 price target implies 37.46% upside from Applied Materials, Inc.'s ($AMAT) current $421.93 share price.
- The stock was recently trading at $421.93, which is about 27.3% below the new price target set by Needham.
- Applied Materials has a strong revenue growth rate of 24.8% year-over-year and a net margin of 30.1%.
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Not investment advice. EarningsIQ is not a registered investment adviser, and this automated Applied Materials, Inc. alert may contain errors. Disclosures
Needham has reaffirmed its Buy rating on Applied Materials, Inc. (AMAT) on October 16, 2026, while lowering its price target from $740 to $580. The shares were recently trading at $421.93, which is about 27.3% below the new target price.
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Other Institutional Activity in Applied Materials, Inc.
Several other institutional investors remain active in Applied Materials. Blackrock Inc. increased its stake by 1,239,871 shares, holding a total of 80,212,518 shares valued at approximately $32.8 billion. Vanguard Capital Management LLC added 268,217 shares, bringing its total to 51,848,358 shares worth about $21.2 billion. State Street Corporation also raised its holdings by 731,418 shares, totaling 38,240,019 shares valued at around $15.7 billion. Invesco Ltd. grew its position by 1,900,912 shares, now owning 28,265,844 shares worth about $11.6 billion. Meanwhile, Capital Research Global Investors reduced its stake by 7,296,037 shares, ending with 22,159,097 shares valued at about $9.1 billion.
Applied Materials, Inc. Stock Down 1.9%
The stock of Applied Materials is currently trading at $421.93, which is significantly lower than the recently set price target of $580. This target adjustment comes as the stock trades below its previous highs, indicating potential volatility ahead.
$AMAT price target
Applied Materials, Inc. daily closes and this analyst's $580 target. Not advice.
Recent Earnings
For the trailing twelve months, Applied Materials reported revenue of $30.8 billion and earnings per share (EPS) of $11.6. The company's return on equity stands at 41.1%, reflecting strong profitability. The next earnings report is expected on November 12, 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.
Insider Buying and Selling at Applied Materials, Inc.
Several insiders have sold shares recently. CEO Gary E. Dickerson sold 78,321 shares valued at approximately $55.6 million on June 30, 2026. CFO Brice Hill sold 7,500 shares for about $3.6 million on August 25, 2026, while Director Judy Bruner sold 1,000 shares worth $465,000 on September 8, 2026. Additionally, Officer Adam Sanders sold 725 shares for about $394,807 on October 2, 2026.
Analysts Set New Price Targets
On October 16, 2026, Needham maintained its Buy rating on Applied Materials, reducing its price target to $580 from $740. Other analysts have also recently made adjustments; for instance, UBS maintained a Buy rating with a target of $695, while Morgan Stanley kept an Equal-Weight rating with a target of $563. The consensus target among analysts suggests that the stock may have room for growth given its recent trading levels.
About Applied Materials, Inc.
Applied Materials, Inc. provides equipment and services to the semiconductor and related industries. The company is a key player in materials engineering solutions and operates globally, serving markets in the U.S., China, and Europe, among others. This rating change from Needham highlights the firm's ongoing confidence in Applied Materials despite the adjustments in price target.
Bottom Line
Investors should keep an eye on Applied Materials as it prepares for its next earnings report on November 12, 2026. The recent adjustments in analyst ratings and price targets indicate a dynamic market environment for the semiconductor equipment sector.
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Source: Needham's rating change on $AMAT (Oct 16, 2026). Written by software, not financial advice. How we make alerts