Shares of Lam Research (LRCX) and Applied Materials (AMAT) jumped sharply Thursday as analysts raised price targets and CEOs signaled unprecedented long-term demand visibility from the semiconductor industry. LRCX gapped up 7.5% to $365.13 after Mizuho lifted its target to $400 and reiterated an Outperform rating. Multiple other firms, including Susquehanna ($475) and Stifel Nicolaus ($500), have recently boosted estimates, citing AI-driven wafer fabrication equipment spending. Lam Research now holds 28 Buy ratings and 6 Hold ratings with a Moderate Buy consensus. Last quarter, LRCX beat EPS estimates ($1.47 vs. $1.36) and posted $5.84 billion in revenue, up 23.8% year-over-year.
Applied Materials surged about 8% to around $620 after CEO Gary Dickerson told Nikkei Asia that chipmakers are sharing demand outlooks as far out as 2030 — an unusual degree of long-range planning. TD Cowen raised its AMAT target by 33% to $700, while Mizuho lifted its to $650. AMAT’s Q2 revenue hit a record $7.91 billion (up 20% YoY) with EPS of $2.86 beating estimates. The company has doubled cleanroom capacity in Singapore and is up 141% year-to-date, though still 18% below its 52-week high.
Both rallies were fueled by bullish calls on AI investment and memory capex. Mizuho now sees global WFE reaching $192 billion in 2027 (up 25% YoY) and introduced estimates out to 2029. TD Cowen’s Sankar forecasts a $250 billion WFE market by 2028, potentially $500 billion by 2030. The positive sentiment pushed back against recent fears of NAND oversupply that had hit equipment stocks.
