Stock Track | Applied Materials Soars 5.19% Intraday on Citi Price Target Hike and AI Glasses Partnership

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Applied Materials' stock soared 5.19% during intraday trading on Wednesday, marking a significant upward movement for the semiconductor equipment maker.

The surge follows Citigroup raising its price target on Applied Materials to $710 from $550, with the brokerage citing rising demand for high-bandwidth memory driven by agentic artificial intelligence. Additionally, the company announced a long-term joint development agreement with eyewear giant EssilorLuxottica to co-develop augmented reality display technology and AI-powered smart glasses, opening a new growth avenue beyond its core business.

Analysts expect the chipmaking tools market to reach approximately $250 billion by 2028, with Applied Materials positioned to benefit from the AI-driven semiconductor capital expenditure cycle. The partnership with EssilorLuxottica leverages Applied Materials' materials engineering expertise in optical technologies for the commercialization of AI glasses.

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