Applied Materials' (AMAT) most important comment in its earnings call was that the company is doubling systems manufacturing capacity by 2028, UBS analysts said in a Friday note.

UBS said that the capacity expansion is broadly consistent with its expectation of $14 billion in systems revenue per quarter, which would push earnings per share very close to $30.

The analysts said the company should continue to gain market share in the wafer fabrication equipment business.

UBS said that commentary on higher wafer fabrication equipment spending in H2 indicates it is likely to exceed $200 billion next year.

UBS retained a buy rating on the stock and lowered the price target to $675 from $705.

Shares of the company were down 5.5% in Friday trading.

Price: 504.39, Change: -30.16, Percent Change: -5.64