Stifel Reiterates Buy Rating on Applied Materials (AMAT)

Stifel analyst Brian Chin reiterated a Buy rating and $180.00 price target on Applied Materials (NASDAQ: AMAT).

The analyst commented, "Post-close, Applied issued an 8-K, which indicated that recent (9/29) rule changes by the US Department of Commerce’s Bureau of Industry and Security, will further restrict/control its system shipments/ service revenue in China.Applied measures the negative impact at $110M in the current F4Q:25(Oct) and $600M in FY26. China represented 30% of Applied YTD sales and was previously signaled to be meaningfully down in F4Q. Overall, the update implies F4Q sales -10% QQ (vrs. our -8% QQ), though we plan to revisit our model/estimates after meeting with Applied (@SEMICON West) next week.The new “affiliates” rule extends export restriction to companies that are 50% or more owned by companies currently on the US Entity or Military End User Lists. Minority (sub-50%) ownership is also subject to higher-levels of diligence/scrutiny.We expect other semi equipment peers/suppliers to have some, albeit varied negative exposure, which again highlights ongoing US-China trade friction/risk."

For an analyst ratings summary and ratings history on Applied Materials click here. For more ratings news on Applied Materials click here.

Shares of Applied Materials closed at $223.59 yesterday.

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