Semiconductor capital equipment company Applied Materials Inc. (AMAT) saw its stock soar 5.16% on Wednesday, outperforming the broader market. This surge came amidst positive analyst sentiment and projections for the sector's growth fueled by the rising demand for AI technologies.
BofA Securities analyst Vivek Arya, in a preview of the upcoming earnings season for semicap companies, highlighted several factors contributing to the improved outlook. Key among them was the potential impact of DeepSeek's AI breakthrough, which could catalyze a device upgrade cycle and subsequently drive demand for leading-edge wafer fab equipment (WFE).
Arya maintained his $105 billion WFE forecast for 2025 and raised price targets for several semicap companies, including KLA Corp, Nova Ltd, and Camtek Ltd. The analyst cited robust spending on leading-edge foundry/logic and high-bandwidth memory (HBM) as the primary growth drivers, favoring exposure in those areas.
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