Morgan Stanley Raises Applied Materials Price Target to $502

Morgan Stanley analyst Shane Brett raised the price target on Applied Materials (NASDAQ: AMAT) to $502.00 (from $454.00) while maintaining an Overweight rating.

“Thoughts on the stock. Our OW thesis on AMAT has centered on DRAM and leading-edge logic upside driving a multiple re-rating, and the company has executed beyond our expectations.

We think there is little doubt that 2026 is AMAT’s year.

While our preliminary 2027 forecast assumes AMAT grows broadly in line with WFE, the company’s execution so far in 2026 is pushing us to look for more reasons to be incrementally positive rather than negative.

We maintain our target multiple of 28x, a 3-turn/5-turn discount to LAM/KLA, which brings up our PT from $455 to $502. Reiterate OW.”

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