Mizuho Downgrades Applied Materials (AMAT) to Hold with a $170 PT Despite Strong Q3 Results

Applied Materials Inc. (NASDAQ:AMAT) is one of the best QQQ stocks to buy right now. On August 20, Vijay Rakesh from Mizuho Securities downgraded Applied Materials to a Hold, with a price target of $170.00. Preceding this announcement came the company’s Q3 2025 earnings report, where Applied Materials recorded a strong demand for semiconductor systems and services.

The company’s total net revenue was ~$7.3 billion, which was an 8% increase year-over-year. This includes Semiconductor Systems revenue of $5.43 billion, which was up 10%; Applied Global Services revenue of $1.6 billion, up 1%; and Display revenue of $263 million. The company’s financial health is strong, with cash and cash equivalents of $5.4 billion and debt of $6.3 billion.

Applied Materials’ non-GAAP EP reached a record $2.48, which was a 17% increase year-over-year. The company’s CEO, Gary Dickerson, stated that the company is on track for its sixth consecutive year of revenue growth in FY2025, with a mid-single-digit growth rate expected. The company is also making strategic investments, including over $200 million in a new manufacturing facility in Arizona, and plans to more than double its advanced packaging business to over $3 billion in the coming years.

Applied Materials Inc. (NASDAQ:AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company has 3 segments: Semiconductor Systems, Applied Global Services, and Display.

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Disclosure: None. This article is originally published at Insider Monkey.