BofA raises price target on Applied Materials to $720 amid bullish semiconductor outlook - Crypto Briefing

Bank of America (BofA) raised Applied Materials' (AMAT) price target from $540 to $720, maintaining its 'Buy' rating. Despite an 8% stock drop on the same day, BofA remains optimistic about the semico... Read original →

Bank of America’s $720 price target for Applied Materials reflects a structural re-rating of semiconductor equipment driven by AI and memory demand. Technologically, DRAM scaling and AI chip heterogeneous integration are accelerating adoption of advanced deposition, selective etching, and hybrid bonding—areas where AMAT’s Endura and Producer platforms dominate. Geopolitically, U.S. export controls force rerouting of supply chains from Taiwan, China to Southeast Asia, inflating costs and delaying tool qualifications. Competitively, ASML remains bottlenecked by EUV capacity, while Lam and KLA focus on etch and inspection niches but lack AMAT’s integrated materials engineering edge. Over the next 12–24 months, the sector faces a reality check: if AI server chip yields disappoint, capex may wobble. Yet HBM4 and 3D DRAM ramp timelines are firm, cementing AMAT’s long-tail advantage in high-value process modules.