Applied Materials expects a $600 million revenue loss in fiscal 2026 due to new U.S. rules restricting exports of chip manufacturing machinery to China-based affiliates aimed at preventing circumvention of controls.
Deutsche Bank upgraded Lam Research to Buy, citing strong market trends including improved memory supply/demand and momentum at key foundries.
Morgan Stanley hiked its 2026 chip equipment sales forecast to +10% (from +5%) because memory markets are improving. They upgraded Applied Materials and Lam Research, but lowered KLA Corp. due to high valuation despite strong growth.
