Applied Materials stock surged to a 52-week high of $331 on January 15, marking a sharp rise from lows of $124 in July 2025. The stock has gained nearly 9% over the past five days and 75% over the last 52 weeks, trading above both its 50-day and 200-day moving averages.
This performance significantly outpaces the S&P 500, which has gained 17% over the same 52-week period. The company's market capitalization now stands at nearly $260 billion.
In its fourth-quarter fiscal 2025 report, Applied Materials announced revenue of $6.8 billion, a 3% decrease year-over-year but above analyst estimates of $6.68 billion. GAAP diluted earnings per share reached $2.38, representing a 14% increase from the previous year.
Full-year revenue set a record at $28.37 billion, up 4% year-over-year. GAAP earnings per share for the year were $8.66, a 1% increase. Non-GAAP gross margin was reported at 48.1%, with operating margin at 28.6%, down 70 basis points.
Semiconductor Systems revenue came in at $4.76 billion for the quarter, while Applied Global Services revenue was $1.62 billion. China accounted for 29% of the company's total revenue.
For the first quarter of fiscal 2026, the company provided guidance of $6.85 billion in revenue, closely aligning with analyst estimates of approximately $6.87 billion. Non-GAAP earnings per share are projected at $2.18. Company executives anticipate increased demand in AI logic, DRAM, and HBM during the second half of 2026.
Barclays recently upgraded Applied Materials to "Overweight" from its previous rating. Analyst Tom O'Malley raised the price target to $360 from $250, suggesting potential upside of 10% from current levels. O'Malley stated that concerns regarding China competition and exposure appear overstated, noting that Applied Materials gained 58% in 2025 compared to peers KLA's 93% gain and Lam Research's 137% gain.
O'Malley highlighted rising spending in foundry, logic, and DRAM sectors, positioning Applied Materials' market exposure as advantageous amid growing AI-driven demand. Shares closed January 15 up almost 6%, supported by Taiwan Semiconductor's strong fourth-quarter results and expanded capital expenditure plans for 2026.
Analysts currently give Applied Materials stock a "Moderate Buy" consensus rating with a mean price target of $289.94. This reflects potential downside of 11% from current levels. Among 36 analysts tracked by Barchart, 20 recommend "Strong Buy," four recommend "Moderate Buy," and 12 recommend "Hold."