Mizuho Reiterates Outperform Rating on Applied Materials

Mizuho analyst Vijay Rakesh reiterated an Outperform rating and $500.00 price target on Applied Materials (NASDAQ: AMAT).

“AMAT reported good AprQ and guided JulQ ABOVE consensus to ~$8.95B, noting accelerating tool demand with Agentic AI. Key points: 1) AMAT now sees Semi systems growing >30% y/y (prior >20%) with AI driving leading-edge foundry/logic and DRAM/adv. packaging;

2) guide is higher than our ests 2026/2027E WFE up ~20%/~14% y/y, as we see potentially significant upside to 2027E (up 25%+ y/y) with timing of clean room capacity opening up;

3) JulQ Rev/EPS guided to $8.95B/$3.36, above consensus $8.15B/$2.88 with strong mix and pricing; and

4) 2026E AGS to grow >15% y/y and mid-teens% CAGR medium term as installed base expands.Maintain Outperform, raise estimates and PT to $500 (prior $410).

While AMAT is executing well, we see LRCX positioned even better L-T with Moly/GAA/Etch share gain, and both benefiting from SIGNIFICANT global WFE tailwinds, greenfield fab capacity, and TSMC (2330TW, Kevin Wang-HK)/INTC capex.”

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