Applied Materials (NASDAQ:AMAT) is a major company in the semiconductor industry. It supplies the manufacturing equipment, services, and software used to create computer chips. Applied Materials is a critical partner for leading chipmakers such as TSMC, SK hynix, and Micron Technology, especially as demand for artificial intelligence (AI) grows.
On May 15, 2026, analyst firm Jefferies showed strong confidence in Applied Materials' future. It raised its price target, which is a projection of a stock's future price, to $510.00 from a previous target of $415.00. Jefferies also kept its "Buy" rating on the stock, which was trading at $440.56 at the time.
This positive analyst view is backed by the company's recent financial performance. As highlighted by Proactive Investors, Applied Materials announced a record quarterly revenue of $7.91 billion, an 11% increase from the previous year. Its adjusted earnings per share of $2.86 also beat analyst estimates, driven by strong demand linked to AI investments.
Other Wall Street firms share this market optimism. As noted by Benzinga, multiple firms raised their price forecasts for Applied Materials. For example, Lynx Equity increased its target to $540.00, and Citi raised its forecast to $520.00. This is fueled by expectations of continued spending on data centers and AI infrastructure, as reported by Reuters.
The market reacted positively to the company's strong stock outlook. Shares saw an increase of about 4% in after-hours trading following the announcement. The stock recently hit a new 52-week high of $448.45, with the company's market capitalization, or total value, at approximately $349.63 billion.
