Applied Materials Draws Fresh Upgrades as Chip Spending Accelerates

Overview

• Deutsche Bank raised Applied Materials to Buy on Jan. 23 with a $390 price target, as shares show strong momentum over the past year and year to date.
• KeyBanc lifted its target to $380 with an Overweight rating, RBC set $385 with Outperform, and Barclays moved the stock to Overweight earlier in January.
• Analysts point to higher capital spending at TSMC and Intel and faster DRAM fab buildouts that are boosting demand for wafer‑fabrication equipment.
• Applied Materials reported record fiscal 2025 revenue of $28.4 billion and gross margin near 49%, marking a sixth straight year of growth.
• U.S. export controls have narrowed the company’s China opportunity, with China at 28% of revenue and more than 20% of that market now inaccessible.