Applied Materials, Inc. (NASDAQ:AMAT) is included among the 13 Best Performing Long Term Stocks to Invest in.
On February 25, Morgan Stanley raised its price recommendation on Applied Materials, Inc. (NASDAQ:AMAT) to $432 from $420 and maintained an Overweight rating on the shares. The analyst also named the stock a Top Pick in U.S. Semiconductor Production Equipment. The firm increased its wafer fab equipment market growth forecasts for 2026 and 2027. It now expects growth of 23% and 27%, up from earlier estimates of 13% and 19%. The revision reflects stronger expected spending on DRAM memory, which continues to drive demand across the semiconductor equipment sector.
During the fiscal Q1 2026 earnings call, President and CEO Gary Dickerson said the company delivered revenue and earnings above the midpoint of its guidance range. He said the semiconductor equipment business is expected to grow more than 20% during the calendar year. Demand is likely to be stronger in the second half, as cleanroom capacity availability affects the timing of customer investments. He also highlighted the company’s position in key technology areas, including leading-edge logic, high-bandwidth memory DRAM, and advanced packaging. He said the shift to gate-all-around nodes is expanding the company’s addressable market and creating new opportunities to gain share.
Dickerson also discussed product innovation. He said the company’s cold field emission eBeam technology is gaining adoption. Revenue from this product line is expected to double during the year and exceed $1 billion. He said its role in process diagnostics and control is expanding, and it is becoming one of the company’s fastest-growing businesses in 2026.
He also said the company plans to introduce more than a dozen new products during the year. This includes three products focused on advanced logic and DRAM, which were announced earlier in the week.
Applied Materials, Inc. (NASDAQ:AMAT) provides materials engineering solutions. The company supplies equipment, services, and software to the semiconductor, display, and related industries.
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