Applied Materials Price Target Raised to $432; Equipment Growth Forecast Jumps to 27%
Morgan Stanley raised Applied Materials’ target to $432 from $420 and boosted wafer fab equipment growth forecasts to 23% for 2026 and 27% for 2027. CEO Gary Dickerson said Q1 revenue and earnings beat guidance and forecasted over 20% equipment growth driven by eBeam technology and gate-all-around nodes.
1. Morgan Stanley Upgrade
On February 25, Morgan Stanley raised Applied Materials’ price target to $432 from $420, maintained an Overweight rating and named it a Top Pick in semiconductor production equipment. It also boosted wafer fab equipment market growth forecasts to 23% in 2026 and 27% in 2027, reflecting stronger DRAM spending.
2. Q1 Financial Performance and Outlook
During fiscal Q1 2026 earnings, CEO Gary Dickerson said the company delivered revenue and earnings above the midpoint of its guidance range. He forecasted more than 20% semiconductor equipment growth for the calendar year, noting stronger demand in the second half as cleanroom capacity frees up customer investments.
3. Product Innovation and Market Expansion
Applied Materials highlighted its cold field emission eBeam technology, expecting its revenue to double and exceed $1 billion, as process diagnostics and control demand grows. The company plans to introduce over a dozen new products in 2026, including three focused on advanced logic and DRAM, and sees gate-all-around nodes expanding its addressable market.