Jeffrey raises Applied Materials target price to $770

Jeffrey has raised the target price for Applied Materials from $510 to $770, maintaining a buy rating. Applied Materials closed at $668 in the previous trading day, with Jeffrey providing a bull market scenario of $900 and a bear market scenario of $500. The increase in DRAM manufacturing complexity has enabled Applied Materials to serve the market, rising from $600 million for 6F ² architecture to $650 million for 4F ² at a wafer capacity of every 100000 wafers per month, and reaching $750 million in the 3D DRAM phase. Applied Materials holds approximately 50% market share in HBM packaging equipment and is expected to generate over $2 billion in revenue for its advanced packaging business this year. Jeffrey expects Applied Materials' EPS to be $14.01 in fiscal year 2026 and $18.06 in fiscal year 2027, with revenues of $36.7 billion and $44.2 billion, respectively. The target price of $770 is based on a 2028 annual EPS of $21.25 and a price to earnings ratio of approximately 36 times.