Analysts Boost Applied Materials Targets on Semiconductor Strength
Stifel and RBC Capital have significantly raised their price targets for Applied Materials (AMAT), reflecting growing confidence in the semiconductor equipment maker's market position. Stifel lifted its target to $340 from $250, while RBC initiated coverage with a $385 outlook—both maintaining bullish ratings.
The upgrades highlight Applied Materials' dominance in DRAM manufacturing and leading-edge foundry technology. The company trades at a 30x P/E multiple, representing a 20% discount to peers, despite announcing its eighth consecutive annual dividend increase.
Analysts emphasize the firm's broad product portfolio and ability to solve roadmap challenges for chip manufacturers. RBC's Srini Pajjuri specifically noted Applied Materials' strategic positioning in the DRAM equipment sector, where spending remains robust.
