Wolfe Research raised its price target on Applied Materials (AMAT) to $550 from $500, maintaining an Outperform rating. The stock has surged 154% over the past year, currently trading at $440.56.
Applied Materials reported April quarter revenue 3% above Street expectations, with July quarter guidance 10% above consensus. The company raised its 2026 revenue growth guidance to over 30% year-over-year.
The upside was driven by customers providing additional clean room space. Applied Materials also raised service revenue growth expectations to mid-teens long-term from double-digit previously.
Wolfe Research raised 2026 revenue and EPS estimates to $36 billion and $13.37, and 2027 estimates to $44 billion and $17.28.
