Mizuho Upgrades Applied Materials to Outperform

Mizuho analyst Vijay Rakesh upgraded Applied Materials (NASDAQ: AMAT) from Neutral to Outperform with a price target of $370.00 (from $275.00).

“We are upgrading AMAT to an Outperform/$370PT (prior: Neutral/$275PT). As the global #2 WFE supplier, we see AMAT benefiting from accelerating US/Taiwan/JP Capex.

We see tailwinds for AMAT with: 1) we now estimate 2026E WFE up 13% y/y and 2027E up 12% y/y, a SIGNIFICANT acceleration versus our prior expectations and upside for AMAT; 2) with Foundry/Logic ~65% of AMAT’s revenues, HIGHER CAPEX from TSMC (2330.TW, covered by Kevin Wang, Buy, TWD2,200PT) with 2026-28E capex “significantly higher” than 2023-25, INTC tool capex better in 2026E, and DRAM with HBM upside at ~30% of Revs; and 3) China we believe is less of a headwind as ex-China WFE revs (70% of Revs) are accelerating faster.

With SIGNIFICANT global WFE tailwinds and upside from TSMC/INTC capex spend expectations, we are UPGRADING AMAT to Outperform and take our PT to $370.”

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