Applied Materials Rallies After CEO Says Customers Are Laying Out Demand to 2030

Overview

• The stock jumped about 8% on Thursday after CEO Gary Dickerson told Nikkei Asia that chipmakers are sharing equipment demand forecasts two years out and in some cases through 2030.
• Several firms raised price targets in response, with Susquehanna moving its AMAT target to $900 and TD Cowen and Mizuho lifting theirs to $700 and $650 respectively.
• Analysts also pushed wafer‑fab‑equipment market projections sharply higher, citing AI-driven server builds and tighter memory dynamics with forecasts ranging toward $250 billion by 2028 and as high as $500 billion by 2030.
• Applied entered the new narrative from a position of strength after reporting record Q2 revenue of $7.91 billion and expanding manufacturing capacity, including a major increase in advanced cleanroom space in Singapore.
• Investors see upside but face near‑term tests because the thesis depends on sustained capex; the company’s August fiscal Q3 report will be watched for bookings, execution on capacity expansion and valuation risks.