Applied Materials gains analyst upgrades and higher spending forecasts amid AI-driven semiconductor demand growth.
Applied Materials (NASDAQ:AMAT) is highlighted as a top long-term dividend stock by billionaire investors, alongside a price target increase to $540 from $500 by Mizuho. The firm also raised its wafer fab equipment spending outlook for 2026 to $153 billion and 2027 to $190 billion, citing strong industry trends.
Mizuho’s upgrade follows Applied Materials’ second-quarter earnings beat, with Argus also lifting its price target to $500 from $420. Analysts point to AI-driven demand, including generative and agentic AI, as key growth drivers for the semiconductor sector.
The wafer fab equipment market is benefiting from NAND node transitions, TSMC spending, and DRAM pricing strength, reinforcing bullish sentiment for AMAT and peers.