Jefferies Raises Applied Materials Price Target to $510

Jefferies analyst Blayne Curtis raised the price target on Applied Materials (NASDAQ: AMAT) to $510.00 (from $415.00) while maintaining a Buy rating.

“AMAT lifted its C26 semiconductor equipment growth outlook to 30%+ from the prior view of 20%+.

The company isn’t guiding for C27, but it does sound like the stage is set for continued 20-30% growth through C27.

Customers are now providing rolling eight quarter forecasts that extend visibility into C28, and management noted that more than 10 new fab projects were added to its tracked pipeline of over 100 globally in just the past 90 days.

AMAT noted that the strength in the current quarter and guide is not a pull forward of demand and that C27 should remain strong.

The wheels of very strong multiyear growth are beginning to turn, with clean room space additions, customer reallocation efforts, and a broadening customer base unlocking shipments that the supply chain has been working to accommodate.

The growth drivers are also broadening with agentic AI workloads now adding incremental CPU, DRAM, and NAND demand on top of the existing training and inference build out.

The newly-announced EPIC Center partnerships add another layer to the long-term story with the potential to drive accelerated design wins across both the existing product roadmap and its future generation pipeline through earlier co-innovation with TSMC, Samsung, Micron, and others.

We continue to view AMAT as exceptionally well positioned with a portfolio sitting squarely in the highest value pockets of AI compute capex. Raising PT to $510.”

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