Applied Materials Extends Rally as Analysts Lift Targets on AI Chip Spending

Overview

• Shares rose roughly 20% over a seven‑day stretch, adding about $25 billion in value and putting market cap near $210 billion, according to Forbes.
• Morgan Stanley raised its price target to $273 with an Overweight rating and cited prospects for two strong growth years driven by DRAM demand and TSMC investments.
• The bank kept its 2026 wafer fab equipment forecast at $129 billion and lifted 2027 to $145 billion, reflecting double‑digit growth expectations.
• KeyBanc increased its price target to $285 with an Overweight rating and pointed to gains from transitions like N2/GAA, HBM, and advanced packaging.
• Recent disclosures highlighted nearly $8 billion in operating cash flow and $5.7 billion in free cash flow, with capital spending focused on the EPIC Center and dividends returned to shareholders.