KLA Corp., Lam Research, Applied Materials, ASML in focus as Cantor ups price targets - MSN

Recent market developments have brought positive signals for the semiconductor equipment industry, with several institutions raising price targets for key players. Cantor Fitzgerald increased its pric... Read original →

The surge in equipment spending reflects a structural shift, not cyclical noise—driven by AI infrastructure buildout and sub-3nm node ramp. This triggers cascading demand across EUV lithography, deposition, and inspection tools, compelling KLA, Lam, and Applied Materials to vertically integrate upstream components to mitigate cleanroom and lead-time constraints. Geopolitical compliance costs are rising: U.S. export controls and Dutch licensing restrictions on ASML have extended validation cycles and inflated spare parts inventories for non-U.S. fabs. TSMC (Taiwan, China) and Samsung’s capacity race will ignite a 2026–2027 equipment arms race, while mainland players like SMIC, barred from EUV, double down on mature nodes—ironically reinforcing ASML’s pricing power at advanced nodes. Over the next 24 months, the sector transitions from order-driven to delivery-capability-driven; firms that localize supply chains and rebuild logistics agility will capture structural premiums.