AMAT: Another Strong Beat / Raise + Improving Visibility

Research evidence excerpt

AMAT: Another Strong Beat / Raise + Improving Visibility

Equity Research

Price Target Change — May 14, 2026

Semiconductor Capital Equipment

Applied Materials, Inc.

Another Strong Beat / Raise + Improving Visibility Overweight

Price Target: $520.00

Notable Changes

Our Call $ (Oct) Current Prior % Chg

AMAT delivered another positive beat / impressive guide, while highlighting extended 8 Price Target $520.00 $435.00 19.5%

qtr rolling visibility. Trading at a discount to peers, AMAT remains our top semi cap pick as EPS 2026 12.18 11.21 8.6%

we believe shares can cont to re-rate higher; PT $520. EPS 2027 16.29 14.17 15.0%

Rev. (MM) 2026 33.35B 31.55B 5.7%

Estimates & PT Changes: We expect another material increase in Street estimates Rev. (MM) 2027 43.48B 38.78B 12.1%

given higher revenue outlook as well as positive GM% dynamics. Our C2026E, C2027E,

and C2028 revenue / EPS tests move to $36.31B / $13.36, $46.09B / $17.71, and Ticker AMAT

$51.71B / $20.37 (from prior $33.78B / $12.16, $40.1B / $14.69, and $43.7B / $16.12,

respectively). With higher estimates, our PT moves to $520 (from $435) on slightly lower Upside/(Downside) to Target 18.0%

valuation at 29x P/E and 24x EV/EBITDA our C2027 estimates. Price (05/14/2026) $440.56

52 Week Range $156.25 - 443.62

Demand Commentary. Similar to peers, AMAT again increased its semi systems guide, Market Cap (MM) $352,007

now expected at >30% y/y in C2026 (vs. prior >20% y/y). They noted it continues to track Enterprise Value (MM) $345,081

>100 fab projects, including >10 new projects (we believe largely DRAM driven) added Average Daily Value (MM) $3,040

over the prior qtr. AMAT rpt'd increasing visibility w/ an 8 qtr rolling forecast w/ its largest Dividend Yield 0.4%

customers providing confidence in cont'd q/q growth into C2027.