Applied Materials: I Am Reiterating My Strong Buy As AI Manufacturing Demand Accelerates

I am reiterating Applied Materials as a Strong Buy rating, with the price target revised to $680 from $802 due to a more conservative valuation multiple.

Q3 2026 results reinforce my thesis that AI-driven demand is transforming semiconductor equipment into a structural growth cycle, not just a capacity cycle.

AMAT is well-positioned, as leading-edge foundry logic, DRAM, and advanced packaging are set to drive 80% of WFE growth through 2027.

Valuation has compressed to 38.79x FWD P/E, while forward growth metrics remain robust, improving the risk-reward profile after the recent selloff.

I am reiterating my Strong Buy rating on Applied Materials (AMAT).

I would also like to revise my price target to $680 from $802, especially after the company released their