Shares of Applied Materials (NASDAQ:AMAT) fell in today’s trading, which can be attributed to analysts’ comments. According to KeyBanc analysts, Applied Materials may not have much more potential for growth following this year’s robust performance. Assuming a bullish scenario of increased chip demand, KeyBanc strategists, led by Steve Barger, believe the company’s shares could potentially rise to $138.
However, in a bearish scenario, shares could slump back down to $85. They highlighted that while Applied Materials and its peers have seen significant price appreciation this year, the timing for recovery has been delayed, possibly causing investors to anticipate a stronger recovery than is feasible in the near term.
Contrastingly, analysts from Citi have increased their price target for the stock to $160 from $136, maintaining a buy rating on the shares despite the company expressing that the market continues to be challenging. However, the analysts at Semiconductor Advisors LLC show little enthusiasm for the stock, citing the persistent weakness in the memory sector and predicting this trend to continue until year-end. They note that memory manufacturers, facing their worst downturn in over a decade, have almost halted their equipment purchases.
Overall, Wall Street analysts have a consensus price target of $135.77 on AMAT stock, implying 7.18% upside potential, as indicated by the graphic above.
