Applied Materials Q1 forecast fuels rally as stock surges 90% over year
Applied Materials shares climbed after delivering Q1 results with an upbeat sales forecast, citing accelerated AI-driven demand for leading-edge logic chips and high-bandwidth memory. The chip toolmaker’s stock has surged roughly 90% over the past 12 months as analysts, including Bernstein raising its target to $425, maintain strong buy ratings.
1. Q1 Results and Guidance
Applied Materials reported Q1 results that exceeded market expectations and issued an upbeat sales forecast. Management highlighted accelerating investments in AI computing workloads as the primary driver, with strong orders for leading-edge logic chips and high-bandwidth memory modules.
2. Stock Performance and Analyst Backing
The company’s shares have climbed approximately 90% year-over-year and about 30% so far this year, reflecting robust demand for its chipmaking equipment. Over 80% of analysts rate the stock a Buy, and Bernstein raised its price target to $425, citing AMAT’s superior DRAM exposure, lower China risk, and attractive valuation versus peers.