Cantor Fitzgerald Raises Applied Materials Price Target to $575

Cantor Fitzgerald analyst C.J.

Muse raised the price target on Applied Materials (NASDAQ: AMAT) to $575.00 (from $550.00) while maintaining an Overweight rating.

“Applied Materials delivered a strong report overnight.

April results and August guide combined well exceeded consensus (revs/EPS of $16.9B/ $6.22 vs. $15.8B/$5.54), led by AI strength related to leading edge Foundry (GAA/FinFet), DRAM (greenfield/shrinks), and Advanced Packaging (F/L & HBM).

For all of CY26, Applied now sees its Silicon business growing 30+% vs. prior guide of 20+% (we had previewed move to 25+% with eventual vision to 32-34%, but we now think closer to 40% when all is said and done).

Here, Applied discussed tracking 10 new sites for equipment delivery, with the majority for DRAM (think greenfield pull-ins by 3-4 months, plus shrinks, plus upgraded equipment to deliver greater output).

Considering our vision for WFE to grow 28-30% in CY26 MAX, Applied is taking meaningful share in CY26 – where very strong leverage to leading edge F/L, DRAM greenfield, and A/P is driving these gains.

To this end, we now model CY26 EPS of $13.50 vs. consensus coming in of $12.03.

Moreover, mgmt signaled 2027 (and beyond) will be another strong, record year with customers today providing multi-year equipment order forecasts (8 rolling Q’s from largest customers) – thus sustained, multi-year growth ahead with mgmt highlighting WFE trends as secular, indicating growth again in CY28. On this front, Applied has doubled its Semi system revenue capacity to ~$10B/Q and is currently studying plans for even greater capacity over time.”

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