Argus Research Sees Long-Term Growth Ahead for Applied Materials (AMAT)

On May 19, Argus Research expert Jim Kelleher raised the firm’s terms proposal connected Applied Materials, Inc. (NASDAQ:AMAT) to $500 from $420. It reiterated a Buy standing pursuing the company’s Q2 net bushed past week. The expert said Applied Materials appears well-positioned for semipermanent growth, supported by cyclical, demographic, and broader manufacture trends. According to the probe note, 1 of the biggest drivers is the rising request for ample CPU and GPU configurations utilized to powerfulness ample connection models for generative AI and, much recently, agentic AI. The steadfast besides pointed to the increasing propulsion for onshoring semiconductor manufacturing, which is progressively being viewed arsenic a nationalist information priority.

On May 18, Morgan Stanley downgraded AMAT to Equal Weight from Overweight and assigned a $502 terms target. The expert said the magnitude of the firm’s DRAM wafer fab instrumentality revisions has narrowed, portion its outlook connected NAND wafer fab instrumentality revisions has improved. Morgan Stanley added that it expects Applied Materials to summation marketplace stock successful 2026. Still, the steadfast noted that its maturation forecast for the institution is successful enactment with the broader wafer fab instrumentality marketplace successful 2027. Because of that, Morgan Stanley believes the stock’s valuation discount comparative to peers is improbable to constrictive successful the adjacent term.

Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions for the semiconductor, display, and related industries. The institution supplies equipment, services, and bundle done its Semiconductor Systems and Applied Global Services segments.

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