Mizuho Raises Applied Materials Price Target to $650

Mizuho analyst Vijay Rakesh raised the price target on Applied Materials (NASDAQ: AMAT) to $650 (from $540) while maintaining an Outperform rating.

“We see upside to WFE estimates in 2027-29E as AI demand support durable ramps for leading edge logic and memory.

Key points: 1) raising our ests for global WFE in 2027E to $192B (up 25% y/y following C26E up 23% y/y) and introducing 2028/29E at $221B/$214B (up 15%/down 3% y/y) with upside capex as AI/Memory/foundry drive multi-year ramps, 2) memory spend strong with HBM capex accelerating into 2027-28E as OEMs increase capacity and prepare for 2028E SOP as supply-demand gap continues to grow given a global memory shortage, potential additional upside from HBF, and 3) advanced packaging capex accelerating with CoPoS/EMIB and industry constrained near-term, with TSMC potentially accelerating CoWoS capacity to ~140kwpm YE-2026E and >200kwpm YE-2027E with GPU/ASIC ramps, CoPoS potentially pulled-in to 2H27E/2028E.

Reiterate Outperform across our coverage. Raise estimates/PTs for AMAT ($650), LRCX ($400) and MKSI ($415).”

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