Applied Materials stock dropped 37% since July but analysts see 53%+ upside with strong AI chip demand.

Applied Materials shares have fallen 37% since July after a cautious investor day, despite strong AI-driven revenue growth and raised earnings estimates. Analysts remain bullish, with an average price target 53% above the current $409 price, citing growth in DRAM, advanced packaging, and leading-edge logic tools. The stock trades at about 22 times fiscal 2027 earnings estimates, suggesting undervaluation if demand holds. The next earnings report will be key to confirming this outlook amid concerns about potential spending slowdowns.

Applied Materials shares are trading at USD 423.00 on Pluang, showing a 3.35% increase in the last day. The stock's market cap stands at $324.81 billion as of Oct 19, 2026 18:31 WIB.