Analyst raises Applied Materials target amid semiconductor growth but sees stronger earnings potential in ASML.
Cantor Fitzgerald raised its price target for Applied Materials (NASDAQ:AMAT) to $850 from $650, maintaining an Overweight rating. The move reflects optimism about AI-driven demand in semiconductor equipment, though the firm expects limited earnings upside compared to peers.
Applied Materials remains a favored pick alongside Lam Research (LRCX) and KLA Corporation (KLAC). However, ASML is highlighted as the top performer in the sector, with the strongest earnings growth potential and a notable catch-up opportunity after underperformance.
The firm cautioned that AMAT, LRCX, and KLAC may see modest relative underperformance through earnings, similar to last quarter. The update underscores shifting dynamics within the semiconductor equipment space as AI adoption accelerates.