Mizuho Raises AMAT Price Target to $220, Maintains 'Outperform' Rating

Mizuho analyst Vijay Rakesh maintains an "Outperform" rating for Applied Materials (AMAT) and raises the price target to $220 from $195, a 12.82% increase. The average target price from 32 analysts is $200.04 with a high estimate of $250.00 and a low estimate of $152.00. The average brokerage recommendation is 2.0, indicating "Outperform" status. The estimated GF Value for AMAT in one year is $173.99, suggesting a downside of 11.83% from the current price.

Mizuho analyst Vijay Rakesh has maintained an "Outperform" rating for Applied Materials (AMAT) and increased the price target to $220 from $195, a 12.82% increase. This revision comes amid positive developments in the semiconductor industry, particularly in the demand for wafer fabrication equipment. The average target price from 32 analysts is $200.04, with a high estimate of $250.00 and a low estimate of $152.00. The average brokerage recommendation is 2.0, indicating "Outperform" status. The estimated GF Value for AMAT in one year is $173.99, suggesting a downside of 11.83% from the current price.

The revised target reflects an optimistic outlook within the semiconductor sector, driven by increased demand in the DRAM high bandwidth memory market. This shift is attributed to the growing need for advanced memory solutions in artificial intelligence and high-performance computing applications. Mizuho's analysis highlights the company's strong position in these fast-growing areas, which are expected to drive significant revenue growth.

Despite the positive outlook, there are challenges that AMAT must navigate, including trade restrictions in China and the slower performance of the 200-millimeter equipment segment. Additionally, the macroeconomic environment remains dynamic, with potential risks from geopolitical and trade policy changes. However, the company's innovative products and global supply chain provide a strong foundation for future growth.

In Q2 2025, AMAT reported record earnings per share and a 7% year-over-year revenue growth. The company's gross margin improved by 170 basis points, and it has increased shareholder capital distributions with approximately $2 billion in dividends and share repurchases. The company also has a strong balance sheet, with $6.2 billion in cash and cash equivalents and $6.3 billion in debt.

AMAT's Q3 revenue outlook is $7.2 billion, plus or minus $500 million, representing a 6% increase year-over-year at the midpoint. The Q3 non-GAAP EPS outlook is $2.35, plus or minus $0.20, representing an 11% increase year-over-year at the midpoint. These figures reflect the company's strong financial performance and its ability to navigate the dynamic market conditions.

References:
[1] https://www.nasdaq.com/market-activity/stocks/amat/analyst-research
[2] https://www.gurufocus.com/news/2968511/goldman-sachs-initiates-buy-rating-on-applied-materials-amat-amat-stock-news
[3] https://www.gurufocus.com/news/2974578/applied-materials-amat-target-price-raised-by-mizuho-analyst-amat-stock-news