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Investing.com - TD Cowen raised its price target on Applied Materials (NASDAQ:AMAT) to $315.00 from $260.00 on Thursday, while maintaining a Buy rating on the semiconductor equipment maker. The new target represents potential upside from the current price of $268.63, which is trading just below its 52-week high of $269.15. The stock has delivered an impressive 66.69% return over the past six months.According to InvestingPro data, analyst targets for AMAT range from $180 to $300, with the company currently trading above its calculated Fair Value.
The research firm cited Applied Materials’ strong positioning at the intersection of two semiconductor industry upcycles: DRAM memory and leading-edge foundry technology. TD Cowen named AMAT its "best idea for 2026" due to approximately 50% of the company’s semiconductor portfolio being exposed to these high-growth segments. As a prominent player in the Semiconductors & Semiconductor Equipment industry with a $214 billion market cap, AMAT has demonstrated strong financial performance with a return on equity of 36% and an overall "GREAT" financial health score from InvestingPro.
For non-China DRAM equipment spending, which represents about 30% of Applied Materials’ semiconductor systems revenue, TD Cowen models 17% growth in calendar year 2026 with potential upside to 20%. The firm noted multiple upcoming greenfield DRAM projects, including Samsung’s P4 facility in mid-2026 and future projects from Micron and SK Hynix in 2027.
In the leading-edge foundry segment, TD Cowen forecasts 15% growth in 2026, weighted toward the second half of the year. The firm indicated that current foundry capacity is at full utilization, with multiple cleanroom projects coming online at TSMC.
TD Cowen also highlighted the Samsung/Tesla partnership as a tailwind for the semiconductor equipment industry, suggesting 2027 could be an even stronger investment year for leading-edge foundry technology.
In other recent news, Applied Materials has seen several updates from analysts regarding its stock ratings and price targets. KeyBanc Capital Markets raised its price target for Applied Materials to $285, maintaining an Overweight rating. This adjustment follows KeyBanc’s internal review and projections for 2028. Similarly, UBS upgraded the stock from Neutral to Buy, also setting a $285 price target, driven by expectations of significant growth in the wafer fab equipment market in the coming years.
In contrast, Craig-Hallum downgraded Applied Materials from Buy to Hold, citing a challenging business environment expected in fiscal year 2026. The firm maintained a price target of $190, reflecting concerns over growth delays. Meanwhile, Macquarie increased its price target to $44, noting improvements in revenue per available room metrics.
Despite these mixed analyses, UBS maintained a Neutral rating with a $250 price target, highlighting concerns over market share losses in China. These developments provide investors with varied perspectives on Applied Materials’ future performance amid changing market conditions.
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