Applied Materials stock soars as CEO sees years of AI-driven semiconductor demand ahead

Why Is Applied Materials Stock Soaring Thursday? - Applied Materials (NASDAQ:AMAT)

Applied Materials CEO Sees 'Tremendous Visibility' Into Demand Sentiment also received a boost from fresh comments by CEO Gary Dickerson, who pointed to strong long-term demand driven by artificial intelligence. In an interview with Nikkei Asia, Dickerson said Applied Materials has "tremendous visibility" into customer demand over the next 24 months. He added that chipmakers are providing equipment demand forecasts at least two years in advance, giving the company confidence that the AI-driven semiconductor investment cycle still has years to run. Applied Materials has also been one of the market's strongest performers over the past year, with shares up more than 211%. Technical Picture Remains Bullish Applied Materials continues to trade above its major moving averages, signaling that the longer-term uptrend remains intact. The stock is trading above its 20-day, 50-day and 200-day simple moving averages. A bullish "golden cross," formed in July 2025, also remains in place. The relative strength index (RSI) stands at 54.46. That reading is considered neutral, indicating the stock is not yet in overbought territory. Traders may watch the 20-day moving average near $604.45 as the first support level. On the upside, the 52-week high near $739.67 remains the next major resistance area. Strong Position In Chip Equipment Market Applied Materials is the world's largest maker of semiconductor wafer fabrication equipment. Its products are widely used to manufacture advanced chips. The company has significant exposure to spending by major chipmakers. As a result, investor sentiment often tracks expectations for semiconductor manufacturing investment. Earnings And Analyst Outlook Applied Materials is expected to report quarterly results on Aug. 13. Wall Street expects earnings of $3.38 per share on revenue of $9 billion. That compares with earnings of $2.48 per share and revenue of $7.3 billion a year earlier. The stock carries a consensus Buy rating with an average analyst price forecast of $627.35. Recent analyst actions include: * Mizuho reiterated Outperform and raised its price forecast to $650 on Thursday. * Morgan Stanley maintained Equal-Weight and lifted its price forecast to $647 on July 6. * Susquehanna reiterated Positive and increased its price forecast to $900 on June 30. Price Action AMAT Stock Price Activity: Applied Materials shares were up 6.77% at $609.12 at the time of publication on Thursday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Mizuho raises Applied Materials stock price target to $650 on AI demand By Investing.com

Investing.com - Mizuho raised its price target on Applied Materials stock (NASDAQ:AMAT) to $650 from $540 on Thursday while maintaining an Outperform rating. The stock currently trades at $623.62, up 194% over the past year, though InvestingPro analysis suggests the shares are overvalued relative to its Fair Value estimate. The firm raised its estimates for global wafer fabrication equipment spending in 2027 to $192 billion, up 25% year-over-year following a 23% increase expected in 2026. Mizuho introduced 2028 and 2029 estimates at $221 billion and $214 billion, respectively, citing AI, memory, and foundry demand driving multi-year capacity expansions. Memory spending remains strong with high-bandwidth memory capital expenditures accelerating into 2027-2028 as original equipment manufacturers increase capacity and prepare for 2028 start of production, according to the firm. The analyst noted a continuing supply-demand gap given a global memory shortage. Notably, 26 analysts have revised their earnings upwards for Applied Materials, according to an InvestingPro tip -- one of over 20 exclusive tips available to subscribers. Advanced packaging capital expenditures are accelerating with the industry constrained near-term, Mizuho said. TSMC may accelerate CoWoS capacity to approximately 140,000 wafers per month by year-end 2026 and over 200,000 wafers per month by year-end 2027 with GPU and ASIC production ramps. Mizuho also raised price targets for Lam Research to $400 and MKS Instruments to $415 while reiterating Outperform ratings across its coverage. In other recent news, Applied Materials Inc. has been in the spotlight following several significant developments. The company announced the launch of six new chipmaking systems aimed at DRAM production and advanced AI chip packaging, which has captured investor attention. This move targets the increasing demand for 3D chip architectures essential for next-generation AI applications. In another development, TD Cowen raised its price target for Applied Materials stock to $700, citing a positive outlook on wafer fab equipment spending, expected to reach $250 billion by 2028. Additionally, prominent investor Michael Burry disclosed a short position against Applied Materials, reflecting his valuation concerns. Meanwhile, options trading for the company surged, with a notable volume of 80,479 contracts, according to exchange data. The company has also been a part of a broader industry trend, with new short positions being taken by Burry in other tech giants like Nvidia and Tesla. These recent developments highlight the dynamic environment surrounding Applied Materials as it navigates the evolving semiconductor landscape. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.