Raising the Bar and Setting the Stage for 2027

Research evidence excerpt

Raising the Bar and Setting the Stage for 2027

USA | Semi. Cap. Equipment

Applied Materials Inc. EquityMayResearch14, 2026

TARGET | ESTIMATE CHANGERaising the Bar and Setting the Stage for 2027

2026 outlook moves higher but the key takeaway for us was increased RATING BUY

confidence on the durability of growth extending into C27 & beyond. Customers PRICE $440.56^

are now offering rolling eight quarter forecasts with visibility extending into C28 PRICE TARGET | % TO PT $510.00 ($415.00) | +16%

and AMAT remains especially well positioned given relative exposure to Leading 52W HIGH-LOW $448.45 - $153.47

Edge Foundry Logic and DRAM. FLOAT (%) | ADV MM (USD) 98.9% | 2,791.19

MARKET CAP $352.0B

AMAT lifted its C26 semiconductor equipment growth outlook to 30%+ from the prior view of TICKER AMAT

20%+. The company isn’t guiding for C27, but it does sound like the stage is set for continued ^Prior trading day's closing price unless otherwise

20-30% growth through C27. Customers are now providing rolling eight quarter forecasts that noted.

extend visibility into C28, and management noted that more than 10 new fab projects were added

to its tracked pipeline of over 100 globally in just the past 90 days. AMAT noted that the strength Cal CHANGE TO JEFe JEF vs CONS

in the current quarter and guide is not a pull forward of demand and that C27 should remain 2026 2027 2026 2027

strong. The wheels of very strong multiyear growth are beginning to turn, with clean room space REV +10% +14% +9% +12%

additions, customer reallocation efforts, and a broadening customer base unlocking shipments EPS +16% +23% +15% +21%

that the supply chain has been working to accommodate. The growth drivers are also broadening

with agentic AI workloads now adding incremental CPU, DRAM, and NAND demand on top of