Mizuho Raises Applied Materials Price Target to $540

Mizuho analyst Vijay Rakesh raised the price target on Applied Materials (NASDAQ: AMAT) to $540.00 (from $500.00) while maintaining an Outperform rating.

“Raising 2026/2027E WFE to $153B/$190B (prior $142B/$163B), up 23%/24% y/y with AI logic/memory brownfield/greenfield fab capacity, as we see: 1) TSMC C26E Capex at high end of $52-56B with 2nm ramps, we see C27E at $74B, up ~28% y/y, 2) Samsung/MU/others ramping HBM/DRAM CAPEX with total memory WFE spend ~$112B in 2026E, 3) INTC spend growing in 2027E with 18A, with potential advanced packaging with EMIB-T with MTK and domestic foundry deals (e.g.

TSLA), 4) LRCX flagging $40B in node transition spend with majority expected before YE-2027E and 4) China domestic WFE continues to grow ~high-teens% y/y.

With an improving WFE outlook,current LRCX, AMAT, MKSI earnings are UNDERESTIMATED, we see UPSIDE.

JulQ unchanged at $9.0B/$3.36 (~inline cons. ~$9.0B/$3.37) Raising F26E from $33.0B/$12.01 to $33.1B/$12.11 (slightly below cons. $33.3B/$12.28) Raising F27E from $40.1B/$15.31 to $42.8B/$16.90 (above cons. $41.8B/$16.20) Raising F28E from $43.9B/$16.57 to $49.9B/$19.86 (above cons. $48.1B/$18.58).”

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