Susquehanna Raises Price Target on Applied Materials, Inc. (AMAT) - Yahoo Finance

Susquehanna analyst Mehdi Hosseini raised Applied Materials' (AMAT) price target from $575 to $900 on June 30, 2026, maintaining a 'Positive' rating. The upgrade follows channel checks indicating an e... Read original →

Applied Materials’ partnership with EssilorLuxottica isn't a mere diversification play—it's a strategic pivot leveraging its atomic-layer deposition and etch tools to enable mass production of AR waveguide gratings. This move pressures upstream optical material suppliers to accelerate development of silicon-based nitride composite substrates. Amid tightening U.S. export controls, AMAT secures long-term visibility by anchoring to consumer hardware leaders, hedging against capital expenditure volatility from potential CHIPS Act subsidy rollbacks. However, deeper entrenchment in Western-led AR ecosystems heightens exposure if U.S.-China tech standards bifurcate, raising supply chain redundancy costs. Competitors like ASML (too litho-focused) or Lam Research (lacking display integration) can’t easily replicate this model. If the WFE market sustains $300B through 2027, AMAT’s platform strategy will catalyze a 'manufacturing-as-a-service' paradigm, forcing tier-2 equipment vendors into niche specialization or consolidation.