Key Takeaways:
- Applied Materials invests in BE Semiconductor Industries to enhance AI chip technology.
- Analyst predictions show potential significant upside for AMAT stock.
- Current brokerage recommendations favor an "Outperform" status for Applied Materials.
Applied Materials Inc. (NASDAQ: AMAT) has strategically acquired a 9% stake in BE Semiconductor Industries, a move designed to propel advancements in hybrid bonding technology critical for AI chip development. Despite this significant investment, Applied Materials has clarified that it does not intend to pursue board representation or expand its shareholding in the Dutch firm. Following this announcement, AMAT shares experienced a slight decline of 0.5%.
Wall Street Analysts Forecast
According to evaluations from 32 market analysts, the average one-year price target for Applied Materials Inc. is set at $206.42. The projections present a range between a high estimate of $250.00 and a low estimate of $164.00. This average target suggests a potential upside of 42.82% from the current trading price of $144.53. For more detailed price estimate data, visit the Applied Materials Inc (AMAT, Financial) Forecast page.
The consensus recommendation from 35 brokerage firms positions Applied Materials Inc. with an average brokerage recommendation of 2.0, which corresponds to an "Outperform" status. The rating scale employed ranges from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Sell.
Furthermore, based on GuruFocus estimates, the anticipated GF Value for Applied Materials Inc. in the next year is projected to be $168.43. This estimation indicates a potential upside of 16.54% from the current price of $144.53. The GF Value is a proprietary metric from GuruFocus, which determines the fair value a stock should be traded at, calculated based on historical trading multiples, business growth patterns, and future business performance estimates. More comprehensive data can be accessed on the Applied Materials Inc (AMAT, Financial) Summary page.
