Applied Materials (NASDAQ:AMAT) was in focus on Friday as KeyBanc Capital Markets upped its price target on the semiconductor equipment firm, though it also expressed China-related caution.
“We are adjusting our estimates to reflect incremental headwinds identified by AMAT via 8-K (~$110M in F4Q and ~$600M in FY26),” KeyBanc analysts wrote in a note to clients. “At the same time, we are increasing our PT to $240 from $220 to reflect our incrementally optimistic view of AMAT’s ability to benefit from, and help drive, the boom in AI-related investment.”
The firm now expects Applied Materials to earn $9.37 per share in fiscal 2025, down from a prior view of $9.40, and in-line with the consensus. The firm also cut its estimates for fiscal 2026 and 2027 to $9.67 and $10.91, from $9.90 and $11.06, respectively.
Earlier this month, Applied Materials disclosed that a new rule will further hurt its ability to export certain products to China-based customers. The chip equipment maker added that the new ruling is likely to reduce revenue in the fourth-quarter by $110M and roughly $600M in fiscal 2026.
