Applied Materials Sees Multi-Year AI Boom Driving Record Revenue And Growth Through 2028 - Applied Materi

Here are the key analyst insights: Check out other analyst stock ratings. BofA Securities: Applied Materials reported record revenues and earnings that topped consensus estimates by 3% and 8%, respectively, Arya said in a note. The company raised its 2026 Systems sales growth projection to 30%, from the prior guide of 20%, he added. Demand is growing across Applied Materials' "most strategic markets" of leading-edge Foundry and Logic, DRAM (dynamic random-access memory) and advanced packaging, which is expected to account for more than 80% of WFE (wafer fabrication equipment) growth in 2026, the analyst stated. Management has "unprecedented visibility" into 2027 and 2028, "with customers providing rolling eight-quarter forecasts," he further wrote. Needham: Applied Materials reported strong results, with revenue growing 13% sequentially to $7.91 billion and coming at the high end of its guidance range, Shi said. Non-GAAP gross margins reached 50% on a favorable mix, he added. Management guided to revenue of $8.95 billion for the fiscal third quarter, representing another 13% sequential growth, with Semi Systems expected to grow 16%, the analyst stated. Management raised their 2026 outlook for Semi Systems growth, with more than 80% of WFE growth expected from leading-edge foundry/logic, DRAM and advanced packaging, he further stated. KeyBanc Capital Markets: Applied Materials' guidance highlighted more than 30% Systems growth in 2026, with momentum continuing into next year, Barger said. The company has a "broad-based strategic net" that simultaneously captures multiple growth opportunities, the analyst stated. Apart from this, product innovations are driving margin expansion, he noted. "With forward visibility at all time highs, AMAT anticipates secular WFE growth into 2028," the analyst further wrote. Cantor Fitzgerald: Applied Materials reported revenues of $16.9 billion and earnings of $6.22 per share, comfortably topping consensus estimates of $15.8 billion and $5.54 per share, respectively, Muse said. The company is likely to gain "meaningful" market share in WFE in 2026, with "very strong leverage" to leading edge F/L, DRAM and advanced packaging driving these gains, he added. The analyst expects Applied Materials to reach earnings of $13.50 per share in 2026, much higher than consensus of $12.03 per share. Also, management expects 2027 to be "another strong, record year," he further wrote. RBC Capital Markets: Applied Materials reported gross margin of 50.0%, well ahead of consensus of 49.2%, Pajjuri said. He added that the midpoint of management's guidance for the fiscal third quarter, at revenues of $8.95 billion and earnings of $3.36 per share, also came well above consensus estimates. The company raised its 2026 guidance to 30% growth in its Systems business, from its prior projection of 20%, while signaling another strong growth year in 2027, the analyst stated. "Looking ahead, we expect double-digit WFE growth to sustain for the next 2-3 years driven by GenAI, extreme tightness in Memory, and re emerging competition in Advanced Foundry," he further wrote. AMAT Price Action: Applied Materials shares were down 1.48% at $434.03 at the time of publication on Friday. The stock is trading near its 52-week high of $448.45, according to Benzinga Pro data. Photo: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.