Analysts remained broadly positive on Applied Materials $AMAT after fiscal Q3, though several firms trimmed price targets as strong results were weighed against margin concerns and very high expectations. The main takeaway was that demand remains strong across leading edge foundry/logic, advanced packaging, DRAM, and broader wafer fab equipment, with AI continuing to support the spending cycle. Bernstein highlighted particularly strong Q4 guidance and said management expects 2026 equipment sales growth to exceed the roughly 30% level previously discussed. JPMorgan similarly pointed to accelerating AI-driven wafer fab equipment demand and improving visibility. Near-term margins were the main source of caution. BofA said the quarter delivered a solid beat and raise, but investors appeared to want greater gross-margin leverage and stronger sequential growth guidance. UBS also cited softer-than-expected gross-margin commentary and conservative near-term guidance, while Deutsche Bank described the outlook as “hazy” despite keeping its long-term thesis intact. Bernstein raised its target to $700 from $675, while JPMorgan made the largest upward revision – to $660 from $515. B. Riley, BofA, UBS, Deutsche Bank, and Morgan Stanley all lowered their targets, although most maintained positive ratings. Overall, analysts still see substantial earnings upside from AI infrastructure spending, capacity expansion, and semiconductor equipment demand – with the debate centered on whether margins and near-term growth can keep pace with already elevated expectations.