KeyBanc Raises Applied Materials (AMAT) Target to $380, Keeps Overweight Rating

Core Viewpoint - Applied Materials, Inc. (AMAT) is well-positioned for growth in the semiconductor industry, particularly benefiting from DRAM-driven capacity expansion and increasing complexity in chip architectures [1][3]. Group 1: Price Target and Valuation - KeyBanc raised the price target for AMAT to $380.00 from $285.00 while maintaining an "Overweight" rating, indicating confidence in the company's future performance [1]. - Despite AMAT's reasonable valuation, it has underperformed compared to peers like KLA and Lam Research due to higher exposure to trailing-edge nodes for both China and ROW customers [2]. Group 2: Growth Opportunities - AMAT is expected to benefit from rising disposition and etch intensity as chip architectures become more complex, with a particular focus on conventional DRAM, which is facing significant scarcity [3]. - The Global Services segment of AMAT is projected to achieve low double-digit revenue growth in fiscal years 2027-2028, driven by high utilization levels of customers' installed equipment [4]. Group 3: Market Position - AMAT is recognized as a leader in materials engineering solutions, providing manufacturing equipment, services, and software to the semiconductor and display industries [5]. - The company is considered to have a favorable relative valuation and an integral role in enabling semiconductor manufacturing, making it an attractive option for new investments [4].