Stifel Raises Applied Materials Price Target to $530
Stifel analyst Brian Chin raised the price target on Applied Materials (NASDAQ: AMAT) to $530.00 (from $500.00) while maintaining a Buy rating.
“F2Q(Apr) results above ours/consensus, with guidance for F3Q(Jul) far-exceeding expectations. Applied now expects CY26 semicap revenue to grow >30% YY (up from >20%).
Near-term, this implies revenue decelerates in the backhalf of the year, reflecting supply constraints tied to: 1) timing of customer cleanroom availability, and 2) rampup of Applied’s new Singapore manufacturing.
We thought these constraints might be more apparent in the F3Q(Jul).
More broadly, Applied continues to see demand strengthen with a rolling 8-quarter forecast (underpinned by the industry’s largest spenders) that stretches into early 2028.
Though too early to quantify, management sees continued spending growth in 2027, while opening the door for capacity to expand further in 2028.
Though lack of stronger calendar 2H guidance might disappoint near-term, management’s upbeat, multi-year outlook is a clear positive and we are again revising up our estimate trajectory through CY27.
We maintain our Buy rating, PT to $530.”
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