Morgan Stanley Raises its Price Target on Applied Materials, Inc. (AMAT) to $420 and Keeps an Overweight Rating
Applied Materials, Inc. (NASDAQ:AMAT) is among the 12 Best Tech Stocks that Beat Earnings Estimates.
On February 13, 2026, Morgan Stanley analyst Shane Brett raised the price target on Applied Materials, Inc. (NASDAQ:AMAT) to $420 from $364 and kept an Overweight rating. Shane Brett said a beat-and-raise quarter, combined with 20%+ systems guidance, marks a leap toward shifting the narrative around the stock in a more constructive direction.
Also on February 13, 2026, RBC Capital raised its price target to $430 from $385 and maintained an Outperform rating. RBC said results were driven by a healthy WFE environment and secular technology trends, adding that China share loss concerns are overdone and that double-digit topline momentum is expected to continue into 2027 despite slower mature node demand. Goldman Sachs analyst James Schneider likewise raised his price target on February 13, 2026, to $390 from $310 and kept a Buy rating, pointing to a strong quarter and above-Street guidance. James Schneider noted management is projecting over 20% growth for the semiconductor equipment business in CY26, supported by spending on foundry and logic, DRAM, and advanced packaging, along with mix-related benefits.
On February 12, 2026, Applied Materials reported Q1 revenue of $7.01B versus consensus of $6.88B. CEO Gary Dickerson said the company “delivered strong results in our fiscal first quarter,” driven by accelerating AI computing investments. He highlighted demand for higher performance and more energy-efficient chips and said the company expects to grow its semiconductor equipment business more than 20 percent this calendar year.
Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries globally and operates through Semiconductor Systems and Applied Global Services segments.
While we acknowledge the potential of AMAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the
READ NEXT: 10 Most Profitable Undervalued Stocks to Buy and 11 Best Mining Stocks to Buy According to Wall Street.
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