UBS kept its Buy rating on Applied Materials on May 4, 2026, and lifted its price target to $480 from $430, underscoring a bullish view on the chip-equipment maker as demand tied to AI and data centers remains strong.
Applied Materials traded near $391, giving it a market value of $310.7 billion, while Wall Street analyst coverage showed 48 Buy ratings, 5 Hold ratings and 1 Sell rating. The stock also carried a P/E ratio of 40.11, and Meyka AI assigned it a B+ grade.
The call lands at a time when semiconductor manufacturers are still expanding capacity around the world. That buildout has kept equipment suppliers in focus, especially as chip demand for AI systems and data centers continues to support spending plans across the industry.
Applied Materials is a critical player in chip manufacturing equipment, and the company’s numbers help explain why the stock has held investor attention. It reported earnings per share of $9.76, free cash flow per share of $7.81, operating margins of 29.1%, return on equity of 38.9% and return on assets of 20.8%. Revenue per share came to $35.58, with five-year revenue growth per share of 87.9%.
But the optimism is not without friction. Geopolitical tensions around chip exports to China continue to create regulatory uncertainty for equipment makers, even as demand trends stay constructive. Applied Materials also carries a 52-week range of $151.51 to $420.50, which shows how sharply sentiment has already moved over the past year.
The company paid dividends of $1.84 per share, for a yield of 0.47%, and traded at 14.2 times book value. It had a current ratio of 2.71 and inventory levels of 151 days. Meyka AI projected the stock could reach $408.99 within seven years, a forecast that sits below UBS’s new target but still points to continued confidence in the business.