Mizuho Securities raised its price target for Applied Materials to $540 from $500. The firm reiterated its Outperform rating based on an optimistic wafer fabrication equipment outlook.
Mizuho projected equipment spending growth of 23% in 2026 and 24% in 2027. Accelerating investments in AI logic and memory fab capacity drive this heightened forecast.
Higher anticipated capital expenditures from TSMC, Samsung, and Micron support the valuation. Mizuho also increased revenue and earnings per share estimates for Applied Materials through fiscal year 2028.