Nov. 25 at 4:42 PM
Applied Materials shares rose after UBS upgraded the stock to Buy from Neutral and raised its price target to
$285, arguing the company is poised to outperform the fast-growing wafer fabrication equipment market over the next two years. UBS highlighted strong exposure to memory and logic, especially DRAM, which it says is entering a demand “super-cycle” that investors are underestimating. The firm expects the WFE market to grow more than 20% in 2026 to
$136.5 billion, potentially reaching
$145 billion in 2027, with memory spending driving the gains.
Despite AMAT’s 42% rise this year, the stock has trailed peers, but UBS says the underperformance doesn’t reflect its fundamentals. The firm also projects 11% growth in China’s WFE demand next year—contrary to broader Wall Street expectations—representing potential upside. Most analysts remain bullish, and UBS’s new target is among the highest on the Street.
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