Wells Fargo, Citi Raise 2028 WFE Forecasts to $2.16-2.5 Trillion, Upgrade Semiconductor Equipment Stocks

According to Wells Fargo and Citi, the two banks recently raised their global wafer fabrication equipment (WFE) spending forecasts, driven by AI chip demand and memory expansion. Wells Fargo analyst Joe Quatrochi's team lifted 2028 WFE projections from $191 billion to $216 billion, while Citi projects 2028 WFE at $250 billion under a bullish scenario, up from $145 billion in 2026.

Both banks upgraded price targets for major semiconductor equipment makers: Citi raised Applied Materials to $710, Lam Research to $450, and KLA to $290. The upgrades reflect increased capex intensity as Taiwan Semiconductor Manufacturing Company, Samsung, and SK Hynix expand sub-3-nanometer logic, advanced packaging, and DRAM/NAND capacity to address AI infrastructure bottlenecks.