Applied Materials shares give back recent gains, analysts stay upbeat on AI chip demand

By Julia Schmitt, Sector & Peer Group desk. Reviewed prior to publication on 2026-06-27, 13:05.

Applied Materials (US0382221051) saw its shares drop more than 6 percent in Friday's Nasdaq session, even as analysts highlight a larger-than-expected long term opportunity in AI-focused chip equipment according to recent market commentary.MarketBeat price and sector data The move comes after a strong year-to-date rally and follows an industry event centered on DRAM and advanced packaging technology.

What the latest session showed

On June 26, 2026, Applied Materials shares closed at 626.84 dollars on Nasdaq, down 6.16 percent for the day with trading volume around 28 million shares, markedly above the 10 million share average.Session statistics overview Intraday, the shares traded between 622 dollars and 660.19 dollars, underlining elevated volatility after a strong multi-month advance in semiconductor equipment names such as peers in the VanEck Semiconductor ETF.

Post-market indications showed a modest rebound to roughly 628 dollars, suggesting some buying interest after the sharp move, while the Nasdaq-100 index itself slipped around 1 percent in the same session.Commentary on index and stock move Despite the latest decline, 52-week performance remains robust with the shares having more than tripled over the past 12 months, significantly outperforming broader semiconductor ETFs such as SMH and SOXX.

How analysts frame the pullback

Several houses used the weakness to reiterate positive views, underscoring that the company remains a key beneficiary of AI infrastructure spending in memory and advanced packaging equipment.Analyst sentiment summary Wells Fargo recently raised its price target on Applied Materials to 740 dollars from 715 dollars and kept an Overweight rating, pointing to strong demand visibility in DRAM and 3D architectures.Wells Fargo price target update

Jefferies and Susquehanna have also reiterated Buy ratings with price targets around 668 dollars, highlighting the company's position in advanced technology segments and its leverage to rising wafer fab equipment spending.Jefferies and Susquehanna ratings According to MarketBeat, the consensus rating on Applied Materials sits in the Moderate Buy range, with an average target price near 518 dollars, reflecting a mix of cautious valuation views and strong operational expectations.Consensus and valuation metrics

The product focus behind the stock

Applied Materials generates its revenue primarily by supplying semiconductor manufacturing equipment, with its new suite of systems for DRAM, advanced packaging and 3D AI chip architectures drawing attention at a recent technology event.Coverage of the new systems launch The portfolio spans deposition, etch and inspection tools, enabling chipmakers such as memory and logic producers to build higher-density and more energy-efficient devices.

Where the shares trade today

The Applied Materials shares (US0382221051) last traded on Nasdaq around 626.84 dollars as of 2026-06-26, 16:00 Eastern Time, following the sharp daily decline in a broader but more muted pullback across major US indices.

This article is for informational purposes only and does not contain investment advice, buy or sell recommendations, or individual financial guidance. Data and prices are based on sources cited in the text and may change without notice.