** Applied Materials AMAT.O forecast Q3 revenue and adjusted profit above estimates, driven by strong demand for its chipmaking tools amid heavy investment in AI infrastructure

** Shares down 2.9% at $427.85 premarket

BETTING ON THE RIGHT CHIPS

** J.P. Morgan ("overweight," PT: $515) points to strong exposure to key growth areas like next‑gen chips, memory and packaging

** Morningstar (fair value: $470) says AI-driven chip equipment growth cycle is strengthening, with stronger growth expected through 2028; sees AMAT well positioned across leading-edge logic, DRAM (memory chip) and advanced packaging buildouts

** RBC Capital Markets ("outperform," PT: $520) says wafer fab equipment growth should stay strong over the next few years, driven by GenAI demand, tight memory supply, and renewed competition in advanced foundry

** Jefferies ("buy," PT: $510) says customers are providing longer-term forecasts with visibility into 2028, with AMAT well placed due to its exposure to advanced logic and DRAM chips