Citi Raises Price Targets for Semiconductor Firms Amid NAND Demand Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: seekingalpha
- Price Target Increase: Citi raised the price target for Applied Materials (AMAT) from $550 to $710, forecasting a total revenue growth of 30%/22% in CY27/28, indicating strong confidence in the company's future performance.
- Market Demand Analysis: Citi highlighted a structural increase in NAND equipment demand due to tightening DRAM supply, predicting a 25% growth in equipment spending by 2028, which will accelerate the adoption of complementary technologies and further solidify market positions.
- Company Performance: AMAT shares rose 4% in premarket trading, while KLA and LRCX saw increases of over 3%, reflecting optimistic market sentiment regarding the semiconductor industry's outlook.
- Innovation Driving Growth: Citi analysts believe that ongoing innovations in high-performance NAND technology will deepen reliance on NAND in cloud computing and device applications, thereby driving long-term growth potential for the overall market.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 640.180
Low
190.00
Averages
288.05
High
425.00
Current: 640.180
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates through two segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including services, spares and factory automation software for semiconductor and other products. Its products include personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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