Applied Materials Inc. (NASDAQ:AMAT) could see semiconductor systems revenue grow about 40% this year as AI-driven chip investment continues to strengthen, according to JPMorgan.
Analyst Harlan Sur maintained an Overweight rating on Applied Materials with a $660 price forecast. The comments followed a Thursday meeting with Mike Sullivan, the company’s corporate vice president and head of investor relations.
Applied Materials Sees Stronger Chip Equipment Demand
Sullivan said roughly 40% year-over-year growth in Applied Materials’ Semiconductor Systems business appears achievable this year. Demand has strengthened over the past 13 weeks, although limited cleanroom space at customers could constrain further upside.
The company also plans to expand manufacturing capacity to support as much as twice its recent systems output by 2028. However, Sullivan stressed that the plan should not be viewed as a forecast for semiconductor equipment spending.
