Daiwa Cuts Applied Materials (AMAT) Rating to Neutral, Lowers PT to $170

Applied Materials, Inc. (NASDAQ:AMAT) is one of the Must-Watch AI Stocks for Investors. On August 20, Daiwa Securities analyst Louis Miscioscia downgraded the stock from Outperform to Neutral with a price target of $170.00 (from $185.00).

The firm contended that AMAT’s quarterly results have been below its expectations due to weak trends in semiconductor equipment spending, problems at major customers Intel and Samsung, as well as slow semiconductor demand outside of AI applications. It believes that the rebound is going to take some time now.

“While downgrading on a miss is not good, and valuation is more modest, we do move to a 3/Neutral from 2/Outperform as we wait for the signs of rebound and these issues could take time to improve. The shares are in-line their 5-year average of 17x. We lower our TP to $170 from $185 reflecting lower expectations, but use 18x our lowered FY26E. EPS for our est. Our rating and target price assume the S&P 500 remains unchanged over the next 12 months.”

Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.

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