Applied Materials (AMAT) sees its price target increased to $240 following strong Q4 performance, though Mizuho cautions on exposure to China and Intel's capital expenditure trends. The semiconductor equipment leader reported $2.1 billion in revenue for the quarter, up 18% year-over-year.
- Applied Materials reported $2.1 billion in Q4 revenue, up 18% year-over-year
- Adjusted EPS of $1.47 exceeded estimates by 11 cents
- Mizuho raised price target to $240, citing strong demand for advanced semiconductor equipment
- 23% of AMAT’s revenue comes from China, exposing it to geopolitical risk
- Intel accounted for 14% of AMAT’s revenue; delayed capital spending poses a near-term risk
- After-hours trading saw a 3.5% increase following the report and upgrade
Applied Materials (AMAT) has drawn renewed investor attention after Mizuho Securities raised its price target to $240, reflecting confidence in the company’s underlying business momentum. The upgrade follows a robust fourth-quarter financial report, during which Applied Materials delivered $2.1 billion in revenue, marking an 18% year-over-year increase and a 12% sequential growth. Adjusted earnings per share reached $1.47, surpassing analyst expectations by 11 cents. The positive outlook is anchored in continued demand for advanced logic and memory manufacturing equipment, particularly in the 3nm and 2nm process nodes. However, Mizuho’s report underscores a cautionary note: geopolitical tensions involving China could disrupt supply chains and limit market access for U.S.-based equipment suppliers. The firm highlighted that approximately 23% of Applied Materials’ revenue comes from Chinese customers, a segment under increasing regulatory scrutiny. Additionally, Mizuho flagged risks tied to Intel Corporation, which accounted for roughly 14% of AMAT’s total revenue in the latest quarter. With Intel’s capital expenditure plans uncertain amid ongoing restructuring and shifting product roadmaps, any further delays in equipment procurement could impact Applied Materials’ near-term guidance. The firm noted that Intel’s planned investment in its domestic U.S. manufacturing facilities is not expected to fully materialize until 2026. The stock has reacted positively, with AMAT trading 3.5% higher in after-hours sessions. Analysts are watching the next earnings cycle closely for signs of sustained demand across mature and advanced nodes, particularly in the U.S., Europe, and Japan, where semiconductor manufacturing is expanding.