Applied Materials (AMAT) in Focus: Morgan Stanley Hikes Price Target to $209

Applied Materials, Inc. (NASDAQ:AMAT) is one of the AI Stocks in Focus on Wall StreetOn September 22, Morgan Stanley analyst Shane Brett upgraded the stock from Equal Weight to Overweight with a price target of $209.00 (from $172.00). The bank finds that shares of Applied Materials are compelling.

“AMAT currently trades at a 25% discount to [Lam Research] vs 10% average since 2023, and our new PT implies a 15% discount.”

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The firm particularly cites AMAT’s high exposure to DRAM spending and potential benefits from new wafer additions, lifting its 2026 EPS estimate for the stock to $10.45 from $9.58 and its price target to $209 from $172.

“With a 3:1 bull:bear skew, the most leverage to greenfield DRAM in our coverage, and our view that China, ICAPS, and leading edge logic are derisked, we think risk reward is skewed to the upside.”

Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.

While we acknowledge the risk and potential of AMAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMAT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.