Overview
- Citi raised its price target on Applied Materials to $710 and kept a Buy rating, a call that drove an 8.75% share jump on June 17.
- The bank extended its wafer‑fab equipment forecast through 2028 and argued that growing NAND demand and a looming DRAM shortfall could sustain memory equipment spending over several years.
- Wall Street sentiment is strongly bullish with 27 of 38 analysts tracked by Zacks rated as Strong Buy, an average brokerage recommendation of 1.50, and a Zacks EPS consensus that rose 2.2% to $12.10.
- Recent company milestones that support the outlook include record fiscal Q2 results, high‑volume validation of new etch and deposition tools, and a new $500 million Singapore production site that boosts capacity and order visibility.
- Analysts and coverage note clear upside if memory makers keep expanding, but they warn about stretched valuations, a high P/E and the risk that slower or delayed chipmaker capex would quickly reverse gains and hit Applied’s cash flow.