Applied Materials stock surged 8.5% on June 17, 2026, as Wall Street analysts raised price targets citing strong demand for semiconductor manufacturing equipment amid an artificial intelligence infrastructure buildout and memory chip supply constraints.
Citi analyst Atif Malik raised his price target on the chipmaker to $710 from $550, implying 25% upside potential from the stock’s previous close. Malik cited bullish demand for NAND memory equipment and expects a widening gap between needed DRAM and available supply to drive adoption of complementary solutions, according to reporting from TheFly.
The analyst upgrades reflected confidence in the semiconductor equipment sector’s growth trajectory. Citi’s broader outlook projects wafer fabrication equipment (WFE) spending to reach approximately $145 billion in 2026, growing to $200 billion in 2027 and $250 billion in 2028, signaling sustained demand for the manufacturing tools Applied Materials produces.
Morningstar analyst William Kerwin reinforced the bullish case, stating that the artificial intelligence-driven growth cycle for chip equipment is strengthening. “We see Applied as very well-positioned for leading-edge logic, DRAM, and advanced packaging supply buildouts,” Kerwin said in a note to clients. He now expects “even stronger growth through 2028” as the company benefits from trends toward more complex chips, including gate-all-around transistors and advanced packaging technologies.
Applied Materials is the world’s largest semiconductor wafer fabrication equipment manufacturer, serving major chipmakers including TSMC, Intel, and Samsung. The stock has more than tripled in value over the past 12 months, outperforming both the S&P 500 and semiconductor equipment peers as investors bet on sustained capital spending for AI infrastructure.
Sources
- GuruFocus — Citi price target raise to $710 from $550 and WFE growth projections for 2026-2028
- Yahoo Finance (Stocktwits) — Citi analyst Atif Malik price target details, Morningstar analyst William Kerwin commentary on AI-driven growth cycle and long-term expectations through 2028
- StocksToTrade — Applied Materials stock surge of 8.43% on June 17, 2026
