Goldman Sachs lifts AMAT 12-month price target to $645, citing extended order visibility and pricing gains in AI-related semiconductor equipment.
Goldman Sachs increased its 12-month price target for Applied Materials (AMAT) to $645 from $520, maintaining a buy rating. The revision reflects a valuation of roughly 32 times normalized earnings of $20 per share, emphasizing long-term growth over short-term performance.
The move follows sustained demand for DRAM, a critical component in AI servers and accelerators. Applied Materials, which supplies fabrication tools, benefits from extended order visibility into 2028 and potential pricing gains. The bank expects the company to outpace peers in 2026.
AMAT stock has surged as chipmakers expand capacity, testing earlier assumptions about cyclical slowdowns. The semiconductor equipment sector’s resilience is now tied to AI-driven infrastructure growth.