Morgan Stanley and Argus Research raised price targets for Applied Materials on May 19, 2026. Morgan Stanley increased its price target to $502. Argus Research raised its target to $500 and maintained a buy rating.
Analysts cited surging demand for AI infrastructure as the primary growth driver. Morgan Stanley expects the company to outpace the wafer fab equipment market in 2026.
The upgrades follow a quarterly earnings report on May 14, 2026, that exceeded revenue and profit estimates. Management forecasts the semiconductor equipment business will grow more than 30 percent in calendar 2026. This outlook relies on AI-related investments in leading-edge logic, DRAM, and advanced packaging.