Bank of America highlights Applied Materials, MKS Instruments, and Lam Research as top semiconductor equipment picks amid ~20% CAGR wafer‑fab growth.
Price objectives set: Applied Materials $420 (29x CY2027 PE), MKS Instruments $300 (19x CY2027 EV/EBITDA), Lam Research $285 (41x CY2027 PE).
Growth drivers include memory investments, cleanroom expansion, and rising logic intensity; risks cite US probe, China export limits, and cost inflation.
Recent earnings beats and upgraded targets for Lam Research and MKS Instruments reinforce bullish outlook for the sector.