Applied Materials dominates wafer fab equipment with 20% market share. Its 25% DRAM exposure is key as memory spending rises for AI.
Analysts forecast $44B revenue and $19 EPS over three years. However, BIS restrictions could cut China revenue by $600M in FY2026.
Restructuring costs of $160-180M hurt near-term earnings. Despite this, 26 analysts revised EPS up.
AMAT trades at 24x forward earnings, a 23% discount to peers. Price targets have risen to $400 from $180.
AI demand for HBM and advanced packaging supports long-term growth. The company is well-positioned for technology transitions like GAA and advanced DRAM.
