Applied Materials rose more than 8%, while ASML and Lam Research gained over 5% to record highs as Citi lifted targets and pointed to rising AI-driven wafer fab equipment spending.
U.S. semiconductor equipment shares climbed broadly, led by Aehr Test Systems, which rose more than 13%. Applied Materials gained over 8%, while ASML and Lam Research advanced more than 5%, with all four reaching record highs, according to MSX.COM data. Sentiment was helped by Citi raising its target prices for Applied Materials to $710 from $550, Lam Research to $450 from $315, and KLA to $290 from $206.40 while maintaining buy ratings. Citi said big tech AI capital spending is still being revised upward and projected the global wafer fab equipment market could expand from $145 billion in 2026 to $200 billion in 2027 and $250 billion in 2028. The rally also spread to optical communications stocks, with Credo Technology, AXT, Astera Labs, Marvell, Coherent and Ciena all moving higher.