Bank of America raises its 2030 semiconductor market forecast to $2.7 trillion, citing AI and data center expansion.
Bank of America increased its price target for Applied Materials (NASDAQ:AMAT) to $720 from $540, maintaining a Buy rating. The revision follows updated semiconductor industry models reflecting stronger growth prospects.
The firm raised its 2030 total semiconductor market forecast to $2.7 trillion from $2.3 trillion, driven by memory and data center demand, alongside recovering automotive and industrial sectors. Applied Materials also signed a long-term deal with EssilorLuxottica to develop augmented reality display technology and AI glasses.
Applied Materials supplies tools for ultra-thin semiconductor layers used in AR displays, aligning with its focus on advanced optical technologies and AI-driven products.