Intel, GlobalFoundries get rating cuts, while Applied Materials and Camtek see upgrades at BofA

[Wall Street]
hapabapa

BofA carried out several rating changes for chipmakers, including Intel (NASDAQ:INTC [https://seekingalpha.com/symbol/INTC]), Applied Materials (NASDAQ:AMAT [https://seekingalpha.com/symbol/AMAT]) and Texas Instruments (NASDAQ:TXN [https://seekingalpha.com/symbol/TXN]).

INTEL (NASDAQ:INTC [https://seekingalpha.com/symbol/INTC])

BofA downgraded Intel's rating to Underperform from Neutral while maintaining its price target at $34.

The analysts said the recent $80B jump in Intel's market cap more than reflects its improved balance sheet and (external) foundry potential.

However, the analysts added that Intel's competitive outlook remains challenged with no discernible AI portfolio/strategy, uncompetitive server CPU, and less flexibility now versus before in divesting loss-making manufacturing.

APPLIED MATERIALS (NASDAQ:AMAT [https://seekingalpha.com/symbol/AMAT]), CAMTEK (NASDAQ:CAMT [https://seekingalpha.com/symbol/CAMT]) AND AXCELIS (NASDAQ:ACLS [https://seekingalpha.com/symbol/ACLS])

The analysts said they upgraded Applied Materials to Buy from a Neutral and raised the price target to $250 on prospects of wafer fab equipment, or WFE, outgrowth in 2026, the first time in four years, due to robust Dynamic Random Access Memory, or DRAM, investments and an attractive valuation gap to large peers.

Similarly, the analysts noted that they have upgraded Camtek to Buy from Neutral and raised the price objective to $135, noting that surging High Bandwidth Memory, or HBM, inspection demand may reaccelerate sales growth.

Meanwhile, BofA downgraded Axcelis Technologies (NASDAQ:ACLS [https://seekingalpha.com/symbol/ACLS]) to Underperform from Neutral.

The analysts said they expect 2026 to be another strong year for memory (up 16% year-over-year) led by continued NAND brownfield investments but also reaccelerating DRAM WFE as recent pricing gains and capacity tightness could spur expansion in HBM/high-end memory.

The analysts noted that Lam Research (NASDAQ:LRCX [https://seekingalpha.com/symbol/LRCX]) is still their top semicap pick given its multifaceted ability to outgrow WFE. Similarly, they said they liked MKS (NASDAQ:MKSI [https://seekingalpha.com/symbol/MKSI]) in small- and mid-caps, or SMid caps, due to NAND leverage and undemanding valuation.

Meanwhile, BofA raised the price targets of Lam Research, KLA (KLAC [https://seekingalpha.com/symbol/KLAC]), Nova (NVMI [https://seekingalpha.com/symbol/NVMI]), MKS (NASDAQ:MKSI [https://seekingalpha.com/symbol/MKSI]), and Teradyne (TER [https://seekingalpha.com/symbol/TER]).

TEXAS INSTRUMENTS (NASDAQ:TXN [https://seekingalpha.com/symbol/TXN]) AND GLOBALFOUNDRIES (NASDAQ:GFS [https://seekingalpha.com/symbol/GFS])

BofA downgraded Texas Instruments (TXN [https://seekingalpha.com/symbol/TXN]) to Underperform from Neutral and decreased the price target on the stock to $190 from $208.

The analysts said that while they continue to appreciate the high quality of Texas Instruments' assets and its execution consistency, they believe the turmoil caused by global tariffs could keep the lid on any near/medium-term demand improvement in the industrial economy. Unlike some peers, the company has limited exposure to the ongoing AI capex cycle, the analysts added.

BofA downgraded GlobalFoundries' (NASDAQ:GFS [https://seekingalpha.com/symbol/GFS]) rating to Underperform from Neutral with a $35 price target.

The analysts said they downgraded GlobalFoundries' stock to Underperform while tweaking their slightly below consensus estimates to reflect the near-term macro headwinds.

The analysts believe the $35 price target indicates limited upside from current trading levels. The analysts added that they do not see a specific catalyst for any immediate decline in the stock but believe the company will need to display faster gross margin, or GM, improvement/pricing power than what they have seen in the last two years.

MORE ON INTEL AND APPLIED MATERIALS

* Lam Research: Priced For Perfection [https://seekingalpha.com/article/4829455-lam-research-stock-priced-for-perfection]
* Lam Research: A Key Enabler Of AI And HPC Growth With More Upside Ahead [https://seekingalpha.com/article/4829327-lam-research-a-key-enabler-of-ai-and-hpc-growth-with-more-upside-ahead]
* Intel: A Great American Turnaround Unfolding Before Your Eyes [https://seekingalpha.com/article/4829104-intel-a-great-american-turnaround-unfolding-before-your-eyes]
* Goldman's 30 stocks with signs of froth [https://seekingalpha.com/news/4503580-goldmans-30-stocks-with-signs-of-froth]
* MKS to sell chemicals unit in a push for chip business: FT [https://seekingalpha.com/news/4503436-mks-sell-chemicals-unit-focus-chip-business]