Applied Materials (AMAT) is expected to grow at least in line with the broader wafer-fab-equipment market over the next year, helped by an anticipated fiscal Q1 beat and a guidance raise, RBC Capital Market said Monday in a report.

Fiscal Q1 adjusted earnings per share are expected at $2.18 on revenue of $6.85 billion, with fiscal Q2 guidance likely to come in above consensus estimates of $2.28 in EPS on $7 billion in revenue, the report said.

Applied Materials is positioned to benefit from rising demand for next-generation memory like HBM4 and from ongoing shifts in chip-manufacturing technology, RBC said.

New transistor designs such as gate-all-around should remain a tailwind for the company, while advanced packaging approaches, including chip-on-wafer-on-substrate, represent another long-term growth driver, the report said.

RBC maintained its outperform rating on Applied Materials stock with a $385 price target.

Fiscal Q1 results are due Thursday.

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