Jefferies has upgraded Applied Materials, Inc. to a 'Buy' rating, citing shifts in semiconductor spending dynamics. The firm also raised its 2025 wafer fabrication equipment (WFE) forecast to $105 billion, an increase from its previous estimate of $103 billion.
The revised forecast reflects stronger capital expenditure from DRAM and TSMC, which is expected to offset a weakening outlook for Intel and Samsung. Jefferies anticipates continued strong DRAM spending, driven by demand for high-bandwidth memory and standard DRAM.
This upgrade indicates a positive re-evaluation of Applied Materials' market position and future prospects within the evolving semiconductor landscape. The firm's analysis suggests that Applied Materials is well-positioned to benefit from these specific areas of industry investment.
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