CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our price target by $72 to $533, 32x our FY 27 (Oct.) EPS view, near peers and above AMAT's three-year average (~20x) as AI tailwinds structurally improve demand growth and visibility. We raise our FY 26 EPS view by $0.96 to $12.10, lift FY 27 by $2.25 to $16.65, and initiate FY 28 at $21.95. Q2 earnings brought a significantly improved outlook, with AMAT now expecting 30%+ Semi Segment revenue growth in CY 26 (a confident step-up from last quarter's projection of 20%+ for the year) along with a normalized mid-teens growth rate for AGS (up from a low-teens view), all supported by incremental demand improvement in Q2 from already impressive levels. Customers are reportedly adding new cleanroom space at a faster-than-expected pace (and widely providing 8-quarter demand forecasts), while AMAT's supply chain is not expected to be a constraint this year, which is not the case for all WFE peers. China sales (27% of total, -300 bps Q/Q) look to have stabilized, providing less of a headwind to overall growth.