Why Applied Materials Shares Are Rocketing Today



Applied Materials Inc (NASDAQ:AMAT) shares are trading higher Friday after the company reported better-than-expected financial results yesterday. Also, several analysts raised the price targets.

Yesterday, Applied Materials reported first-quarter FY24 earnings of $2.13 per share, beating the analyst consensus estimate of $1.91, and sales of $6.71 billion, beating the analyst consensus estimate of $6.48 billion.

Applied Materials sees second-quarter adjusted earnings per share of between $1.79 and $2.15, versus the $1.79 estimate, and second-quarter revenue of between $6.1 billion and $6.9 billion, versus the $6.3 billion estimate.

Maintaining a Buy rating, B.Riley Securities increased the price target to $250 (from $220), Stifel to $230 (from $175), Needham to $240 (from $180), Mizuho Securities to $225 (from $185), Goldman Sachs to $220 (from $156) and BofA Securities to $222 (from $185).

BofA Securities analyst Vivek Arya says Applied Materials is well leveraged across multiple technology enablers of AI silicon, including high-bandwidth memory, advanced packaging, and leading-edge logic.

Overall, the analyst raised CY24/25 pf-EPS by 6%/9% to $7.96/$9.40.

Also, B.Riley analyst Craig A. Ellis sees better-than-expected new product SAM expansion, multi-segment sales growth, material gross …

Full story available on Benzinga.com


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