Shares in Applied Materials (NASDAQ:AMAT) and rival Lam Research (NASDAQ:LRCX) edged higher in premarket U.S. trading after analysts at Needham upgraded their rating of the chip tool makers.
In a note to clients, the Needham analysts raised their outlook for both Applied and Lam to “Buy” from “Hold.” They argued that sales of wafer fabrication equipment, which is used in manufacturing semiconductors and supplied by these companies, will touch $90B in 2023, topping consensus forecasts.
The analysts added that they believe sales of these items will stay at $90B next year before climbing to an estimated $100 billion in 2025.
