BofA Securities raised its price target on Applied Materials (AMAT) to $540 from $465, maintaining a Buy rating.
Applied Materials reported record April quarter revenue and EPS, beating consensus by 3% and 8%. The July quarter guidance exceeded expectations by 10% and 17%.
The stock has returned 154% over the past year, currently trading at $440.56, near its 52-week high of $448.45.
The company now expects 2026 Systems sales to grow 30% YoY, up from 20% prior. Management sees visibility into 2027-2028 with rolling eight-quarter forecasts.
Demand is broadening across leading-edge foundry/logic, DRAM, and advanced packaging, driving over 80% of wafer fabrication equipment growth in 2026.
BofA raised 2026 and 2027 EPS estimates by 14% and 18% to $13.48 and $17.13, respectively.
Other analysts also raised targets: Mizuho to $500, Stifel to $530, RBC to $520, Jefferies to $510, UBS to $515.
