Applied Materials Inc. (AMAT) soared 5.16% in pre-market trading on Thursday, marking a significant upward move for the semiconductor equipment maker.
The surge follows CEO Gary Dickerson's comments indicating strong long-term visibility into semiconductor equipment demand, with a clear view of customer demand over the next eight quarters and some outlooks extending through 2030 to support capacity planning. The CEO highlighted that demand is being driven by artificial intelligence infrastructure and advanced semiconductor manufacturing, with advanced chip packaging equipment expected to remain one of the industry's fastest-growing segments.
Concurrently, several major financial institutions raised their price targets on Applied Materials. Mizuho increased its target to $650 from $540, while TD Cowen made a more aggressive move, raising its target to $700 from $525. These upgrades reflect significantly elevated expectations for wafer fab equipment market growth in the coming years.