Wells Fargo Maintains Buy Rating on Applied Materials (AMAT), Keeps PT Steady

On May 23, analyst Joseph Quatrochi from Wells Fargo maintained a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) while keeping the price target of $200. The reiteration comes after the company released fiscal second quarter results for 2025 on May 15.

A technician in a clean room assembling a semiconductor chip using a microscope.

Applied Materials, Inc. (NASDAQ:AMAT) delivered $7.10 billion in revenue reflecting 7% year-over-year growth. Notably, the EPS grew 14% during the same time to $2.39 surpassing analyst expectations by $0.08. Management reported the quarter to be driven by increased demand for AI-enabling semiconductors.

Analyst Joseph Quatrochi highlighted the growth was driven by increased revenue contributions from major clients including Samsung and TSMC. Samsung’s quarterly revenue contribution increased 65% year-over-year, whereas TSMC contributed 21% to the company’s total revenue, reflecting a 150% increase during the same time.

In addition, Quatrochi noted that despite revenue declining in some areas, excluding contributions from major clients, the overall financial health of Applied Materials Inc. (NASDAQ:AMAT) remains strong. The company anticipates third-quarter revenue to be around $7.2 billion with an EPS between $2.15 to $2.55.

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