Applied Materials Sees ~40% Systems Growth, AI Driving 80% of WFE Expansion
AMAT has more than doubled off its 52-week low of $154.465 on light trading volume (0.3× avg).
Summary
Applied Materials management told JPMorgan that semiconductor systems revenue could grow about 40% this year, with AI-related markets driving roughly 80% of wafer fabrication equipment growth. Demand has strengthened over the past 13 weeks, though limited customer cleanroom space may cap upside. The company plans to expand manufacturing capacity to support up to twice recent systems output by 2028, and customer forecasts now extend into 2028 with some discussions through 2030. This follows the blowout Q3 report on August 13 and adds forward-looking color on the AI-driven demand cycle. JPMorgan maintained Overweight with a $660 price target.
At the time of this announcement, AMAT was trading at $488.95 on NASDAQ in the Technology sector, with a market capitalization of approximately $388.2B. The 52-week trading range was $154.47 to $739.67. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.