Applied Materials (AMAT) Stock Surges as Citi Makes Its Strongest Case Yet

TLDR

• Citi raised its price target on Applied Materials to $710 and reaffirmed a Buy rating
• AMAT stock jumped 8.75% following the analyst update
• Citi’s bull case cites strengthening NAND equipment demand and a looming DRAM supply gap through 2028
• 27 of 38 Wall Street analysts currently rate AMAT a Strong Buy, giving it an ABR of 1.50
• The Zacks Consensus Estimate for AMAT’s current-year EPS has risen 2.2% over the past month to $12.10

Applied Materials (AMAT) stock surged 8.75% on Tuesday after Citi raised its price target to $710 and reaffirmed a Buy rating on the chip equipment maker.

Applied Materials, Inc., AMAT

The move pushed AMAT’s year-to-date gain to 117.53%, one of the stronger runs in the semiconductor equipment space this year.

Citi’s upgrade was driven by an updated wafer fab equipment outlook through 2028. The bank pointed to rising NAND equipment demand and what it described as a coming DRAM supply gap as key drivers for Applied Materials’ tools business.

The thesis is straightforward: as memory chipmakers ramp spending to close that gap, demand for Applied’s complementary equipment should follow. Citi sees that cycle playing out over the next two-plus years.

The stock’s reaction suggests the market agrees — at least for now.

Wall Street Broadly Bullish on AMAT

Applied Materials isn’t short on fans on the Street. Of 38 analysts tracked by Zacks, 27 carry a Strong Buy rating and three have a Buy. That puts the Average Brokerage Recommendation at 1.50, sitting between Strong Buy and Buy.

Strong Buy and Buy calls combined account for roughly 79% of all analyst ratings on the stock.

That said, heavy analyst optimism doesn’t always move in lockstep with stock performance. Brokerage firms have a well-documented tendency to skew bullish — for every Strong Sell, research shows roughly five Strong Buy calls get issued across the market.

Earnings Estimates Trending Higher

On the earnings side, the picture looks constructive too. The Zacks Consensus Estimate for Applied Materials’ current fiscal year has climbed 2.2% over the past month, now sitting at $12.10 per share.

That revision trend earned AMAT a Zacks Rank #2 (Buy), which factors in the direction and size of earnings estimate changes rather than just analyst sentiment.

The Zacks model weights earnings revisions heavily, and the recent upward move in EPS estimates lines up with the broader analyst optimism around the stock.

Applied Materials currently carries a market cap of C$651 billion. Average daily trading volume sits at 36,237, and the stock’s technical sentiment is rated Strong Buy.

Citi’s updated bull case through 2028 now stands as one of the more detailed long-range frameworks for AMAT on the Street.

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