Applied Materials Reaffirms High-End Chipmaking Tools Forecast Amid Government Incentives

Applied Materials has reaffirmed its forecast for high-end chipmaking tools despite the US government's incentives affecting factory locations. The company's CFO stated that the incentives won't expand overall demand and may reduce utilization rates slightly. Cantor Fitzgerald has maintained a "Buy" rating on the company with a $200 price target. Applied Materials serves global chipmakers and the electronics industry with semiconductor manufacturing equipment, services, and display technologies.

Applied Materials Inc. (AMAT) has reaffirmed its forecast for high-end chipmaking tools despite the US government's incentives affecting factory locations. The company's CFO stated that the incentives won't expand overall demand and may reduce utilization rates slightly. Cantor Fitzgerald has maintained a "Buy" rating on the company with a $200 price target Applied Materials Faces Growing Risks in China, Analyst Says. The Stock Falls.^[2].

Applied Materials serves global chipmakers and the electronics industry with semiconductor manufacturing equipment, services, and display technologies. The company recently received a Plasma Enhanced Chemical Vapor Deposition (PECVD) tool from Applied Materials for dielectrics deposition on 200mm wafers, supporting RF circulators within the FAMES pilot line SAL receives Applied Materials PECVD tool for 200mm dielectrics thin films deposition^[1]. This tool is in the commissioning phase and targets full qualification by the end of 2025.

The addition of the PECVD tool is a significant step in enhancing the capacity for material innovation and ensuring high-quality dielectrics deposition, crucial for the insulating and passivation layers of RF circulators. This tool will also support the development of high-performance thin films for RF devices, MEMS, photonics, and sensor applications, as well as process integration for next-generation ICs SAL receives Applied Materials PECVD tool for 200mm dielectrics thin films deposition^[1].

Despite the positive developments, Applied Materials faces growing competition from Chinese rivals in the semiconductor-equipment industry. Mizuho Securities downgraded Applied Materials to Neutral from Outperform and lowered its price target to $175, citing potential share loss in China Applied Materials Faces Growing Risks in China, Analyst Says. The Stock Falls.^[2]. However, Lam Research is better positioned to weather the disruptions from China, as it is gaining share in critical steps of the chip manufacturing process Applied Materials Faces Growing Risks in China, Analyst Says. The Stock Falls.^[2].

The company's CEO, Gary Dickerson, remains confident in the longer-term growth outlook, particularly in robotics and artificial intelligence. Cantor Fitzgerald's "Buy" rating and $200 price target reflect this optimism, despite near-term challenges in the sales pipeline Applied Materials Faces Growing Risks in China, Analyst Says. The Stock Falls.^[2].