Applied Materials (AMAT) Sees 40% DRAM Revenue Growth in 2025, Mizuho Maintains Outperform

Mizuho analyst Vijay Rakesh recently lowered the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $195 from $205 and kept an Outperform rating on the shares. AMAT provides equipment, services, and software for the semiconductor industry.

The company reported an in-line quarter but faces headwinds in China, the analyst told investors in a research note.

A technician in a clean room assembling a semiconductor chip using a microscope.

The firm recently posted earnings for the second fiscal quarter, with Gary Dickerson, President and CEO, reporting that his firm delivered strong results across the board, including record earnings per share. Dickerson stated that Applied is well-positioned in areas such as AI, foundry-logic, advanced DRAM, packaging, and power devices. He highlighted that in 2025, AMAT expects revenues from advanced DRAM customers to grow more than 40% as it ramps investments in DDR-5 and high-bandwidth memory. Dickerson revealed strong market adoption of new products, noting that the Sym3 Magnum etch system for advanced patterning has generated more than $1.2 billion of revenue since launched in February 2024.

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