HSBC raised its price target for Applied Materials (AMAT) to $683 from $522. The bank maintained its Buy rating on the stock.
This revision reflects a broader positive outlook for the semiconductor equipment sector. HSBC also increased price targets for Lam Research and ASM International.
The bank expects a stronger-than-expected outlook for the wafer fab equipment (WFE) market. HSBC raised its 2028 WFE forecast based on ASML's plans to expand production capacity.
Analysts anticipate continued strength in market demand. HSBC sees potential upside to consensus estimates for Applied Materials ahead of its upcoming earnings report.