Citigroup Raises Price Targets for Applied Materials, Lam Research, KLA; Applied Materials Hits Record High

According to Citigroup analyst Atif Malik, on June 18, the bank raised its price targets for semiconductor equipment makers Applied Materials, Lam Research, and KLA, while maintaining buy ratings. Atif Malik increased Applied Materials' target from $550 to $710, Lam Research from $315 to $450, and KLA from $206.40 to $290, citing continued upward revisions in AI capital expenditures from major tech companies. Applied Materials rose 4.4% on Wednesday and hit record highs intraday; Lam Research also reached new peaks. Citigroup projects the global wafer fab equipment (WFE) market could expand from $145 billion in 2026 to $200 billion in 2027 and $250 billion in 2028, driven by AI compute, storage expansion, and advanced process investments.
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