AI-Driven Chip Demand Spurs Optimism in Semiconductor Industry; Analyst Upgrades Key Players with Bullish Price Targets

Analyst Timm Schulze-Melander (Head of Tech Hardware research, Redburn) predicts growth in the semiconductor equipment industry, driven by AI-related chip demand. He upgraded Applied Materials and ASM International to "Buy," started Lam Research with a "Buy" rating, and rated KLA as "Neutral." Despite current capacity reductions, he sees growth resuming in 2025. Positive signs include recovering PC and mobile phone markets, with smartphone shipments expected to rise. He set price targets for each company, highlighting their market strengths. This analysis led to a rise in the companies' stock prices, reflecting optimism for the sector's future, particularly in the context of AI-driven demand.

The target prices set by analyst Timm Schulze-Melander are as follows:

• Lam Research: $800 - now $717
• ASM International: €545 - now $459
• KLA: $550 - now $554
• Applied Materials: $175 - now $149

Sources: 

Applied Materials and 3 Other Chip Equipment Stocks for a New AI Play - MarketWatch

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