Jefferies sees semiconductor equipment growth through 2028

What happened: Jefferies said it expects the semiconductor production equipment market to keep expanding through 2028, despite concerns about AI investments, data center construction and memory prices. Key numbers: Jefferies expects the wafer fabrication equipment market to reach up to $200B in 2027 and about $220B in 2028, Why it matters: Long-term supply agreements have improved demand visibility over the medium term, supporting equipment makers' growth expectations. Jefferies has Buy ratings on $AMAT, $LRCX, $NVDA, $CRWV, $META, $MSFT and $AMZN, and Hold ratings on $ASML and $DINRF. Market: +0.4% today ($377.24), +40.7% YTD, 1.0x vol — as of 12:00 UTC

Jefferies said it expects the semiconductor production equipment market to keep expanding through 2028, despite concerns about AI investments, data center construction and memory prices.

Long-term supply agreements have improved demand visibility over the medium term, supporting equipment makers' growth expectations. Jefferies has Buy ratings on $AMAT, $LRCX, $NVDA, $CRWV, $META, $MSFT and $AMZN, and Hold ratings on $ASML and $DINRF. Market: +0.4% today ($377.24), +40.7% YTD, 1.0x vol — as of 12:00 UTC