Cantor Affirms Overweight on Applied Materials, $850 Price Target

Cantor Fitzgerald analyst C.J.

Muse reiterated an Overweight rating and $850 price target on Applied Materials (NASDAQ: AMAT).

“We did press on gross margins – where investors wanted mid-fifties vs. the guided 54% and our sense from our conversation is that this guide is conservative, particularly when reflecting on the rising mix of Silicon.

That said, it is worth noting that Gary is clearly very focused on growth and that is why they gave this more certain # — which then means, the operating leverage line is critically important here.

From a new product perspective, Applied was most bullish and/or talkative about process control and metrology.

Mgmt sees both Optical Inspection and Ebeam growing by more than 50% in CY26 with TAM expansion of $7B from Optical (overall biz at $3B including service).

While the discussion here was limited, it appears the company sees sensitivity as a competitive advantage and is most likely targeting the Advanced Packaging market.”

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