Applied Materials Inc. (AMAT  ) trended this week after multiple Wall Street firms raised their price forecasts, citing accelerating AI-driven semiconductor spending, rising demand for advanced memory chips, and expanding investment in next-generation chip manufacturing facilities. Lynx Equity Sees Strong Multi-Year Growth

Lynx Equity raised its price forecast on Applied Materials to $540 from $440, as the firm shifted its valuation focus to 2028 earnings expectations rather than 2027 estimates.

The firm expects NAND memory to drive a new wave of semiconductor fabrication investments in 2028, while Terafab could spark another cycle of advanced logic chip factory spending.

Lynx projected Applied Materials' semiconductor systems revenue to grow 35% in 2027, with total revenue increasing 30%, compared with consensus expectations near 20%. The firm also forecast 2028 revenue growth of 15% versus Wall Street estimates around 10%.

Citi Highlights AI Infrastructure Spending Boom

Citi analyst Atif Malik raised his Applied Materials price forecast to $520 from $420 after increasing forecasts for wafer fabrication equipment spending through 2027.

Malik linked rising hyperscale data center capital spending directly to stronger demand for semiconductor manufacturing equipment tied to AI infrastructure growth.

The analyst outlined a bullish scenario where wafer fab equipment spending reaches $145 billion in 2026 and $190 billion in 2027.

Malik also increased his 2027 silicon revenue growth estimate to 31% year over year and lifted his 2027 earnings-per-share forecast by 12% to $15.72.

RBC Sees AI And Memory Demand Driving Upside

RBC Capital raised its Applied Materials forecast price to $500 from $430 while maintaining an Outperform rating.

The firm expects strong quarterly results driven by DRAM and high-bandwidth memory demand, while also anticipating Applied Materials could deliver another beat-and-raise quarter similar to recent updates from peers Lam Research Corp. (LRCX  ) and Tokyo Electron Ltd. (TOELY  ).

RBC said Applied Materials remains well-positioned due to its strong exposure to DRAM, HBM, and advanced logic manufacturing.

Technical Setup Still Favors Bulls

The bigger-picture trend is still pointed up: AMAT is trading 8.6% above its 20-day SMA ($406.88) and 58.6% above its 200-day SMA ($278.71), which is typical of a strong momentum name that's been in a sustained uptrend. The 20-day SMA remains above the 50-day SMA, and the 50-day SMA is above the 200-day SMA (a golden cross that occurred in July 2025), keeping the longer-term trend structure bullish.

Momentum also looks constructive through MACD, which is above its signal line, and the histogram is positive, suggesting downside pressure is easing relative to the prior downswing, even if the stock chops around near highs. In plain English, when MACD is above the signal line, it often means buyers are regaining control of the "push" behind the trend.

From a levels perspective, the chart is still defined by "extended but intact" conditions, where pullbacks are judged by whether they hold above key trend gauges. A deeper retracement would put more focus on the mid-term trend area around the 50-day SMA ($377.35) and 50-day EMA ($383.59).

• Key Support: $377.00 - a nearby level where buyers previously stepped in, aligning closely with the 50-day moving average zone

Looking further out, the next major catalyst for the stock arrives with the August 13, 2026 (estimated) earnings report.

• EPS Estimate: $2.91 (Up from $2.48 YoY)
• Revenue Estimate: $8.17 Billion (Up from $7.30 Billion YoY)
• Valuation: P/E of 44.8x (Indicates premium valuation relative to peers)

• Citigroup: Buy (Raises Forecast to $520.00) (May 12)
• Cantor Fitzgerald: Overweight (Raises Forecast to $550.00) (May 11)
• HSBC: Initiated with Buy (Forecast $517.00) (May 8)