Goldman Sachs analyst James Schneider reiterated a Buy rating and $215.00 price target on Applied Materials (NASDAQ: AMAT).

The analyst comments "We expect the stock to pull back following weak guidance which is driven by a near-term drop in China ($500 mn) as capacity is digested, as well as isolated pushouts from select leading-edge logic customers ($500 mn), partly offset by trailing-edge logic strength elsewhere ($400 mn). We believe investor expectations had moderated heading into the call given more cautious peer commentary on 2026; however, the incremental weakness in China is coming earlier than we had forecast in terms of an expected 2026 pullback. We continue to have a muted view of WFE growth in 2026 (up 2% and below the Street), but see spending on individual technology steps - namely etch and deposition - outperforming this tepid growth rate. We remain Buy rated on AMAT as we believe the company is positioned to outperform peers on a relative basis given its high relative exposure to deposition and etch against this muted growth rate in 2026."

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Shares of Applied Materials closed at $188.24 yesterday.