Core Viewpoint - Applied Materials, Inc. is gaining analyst support as it is positioned to benefit from multi-year semiconductor tailwinds, particularly in deposition and etch processes for advanced chips [1][4]. Group 1: Analyst Ratings and Price Targets - KeyBanc Capital Markets raised its price target for Applied Materials from $285 to $380, maintaining an Overweight rating due to the company's diversified supplier position and potential benefits from increasing deposition and etch intensity [1]. - Barclays upgraded Applied Materials from Underweight to Overweight, citing expected AI-related spending as a significant factor for the semiconductor industry [3]. Group 2: Market Position and Growth Potential - Analysts highlighted that Applied Materials is well-positioned to benefit from growing demands in conventional DRAM, which is considered a critical AI-related device facing scarcity [2]. - The firm anticipates steady growth in Applied Materials' Global Services area, predicting low double-digit revenue increases in fiscal years 2027 and 2028, driven by customers utilizing existing equipment at full capacity [2]. Group 3: Competitive Landscape - Despite its potential, Applied Materials has experienced less stock value growth compared to competitors like KLA Corporation and Lam Research, primarily due to its greater involvement in older technology nodes for customers in China and other regions [1]. - Concerns regarding competition from China have already been reflected in the stock's valuation, according to Barclays [4].

Core Viewpoint - ASML Holding N.V. has been downgraded to "Neutral" by New Street due to concerns about its growth prospects beyond 2026, despite strong near-term demand driven by AI [1][3]. Group 1: Company Overview - ASML develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing [4]. Group 2: Market Outlook - The firm warns of weak growth prospects for ASML, even though there is robust near-term demand for AI, with AI capital expenditures expected to triple by 2030, necessitating an estimated $130 billion in cumulative wafer fab equipment spending [2]. - New Street anticipates "peak acceleration this year and peak spending next year," leading to a weak outlook for ASML beyond 2026, citing near-term uncertainty and valuations significantly above historic averages [3].

Core Viewpoint - ASML Holding N.V. is gaining attention as a trending AI stock, with HSBC raising its price target to EUR 1,018 from EUR 809 while maintaining a Buy rating ahead of the company's September quarter results [1][2]. Group 1: Financial Performance and Expectations - The firm anticipates ASML's September quarter results and December quarter guidance to align with expectations, with management likely to discuss demand trends extending into 2026 [2][3]. - ASML is projected to achieve 6% revenue growth in 2026, with revenue and operating income estimates 3%-5% above consensus forecasts [2][3]. - The analysis indicates that ASML requires EUR 7.8 billion in orders in the second half of 2025 to meet forecasts, with September quarter orders of approximately EUR 4 billion viewed as supportive of 2026 expectations [3]. Group 2: Market Sentiment and Demand Trends - Recent positive newsflow supports the view that ASML can deliver revenue growth in 2026, shifting the narrative from no growth to growth, which may lead to a valuation re-rating [3]. - The company is expected to benefit from strong demand signals and DRAM capacity expansion, contributing to overall optimism regarding its stock performance [2][3].

Group 1 - ASML Holding N.V. is recognized as a prominent AI stock on Wall Street, with Barclays analyst Simon Coles raising the price target to EUR680.00 from EUR650.00 while maintaining an Equal Weight rating [1] - The company has experienced years of double-digit growth, but it may face minimal growth for the second consecutive year due to uncertainties related to customer dynamics [1] - ASML specializes in developing and selling advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing [2] Group 2 - While ASML is acknowledged as a potential investment, there are other AI stocks that may offer greater upside potential and carry less downside risk [3] - The report suggests that certain undervalued AI stocks could benefit from Trump-era tariffs and the trend of onshoring [3]