Morgan Stanley Raises Applied Materials Price Target to $647, Maintains Equal Weight

Morgan Stanley raised its price target on Applied Materials, Inc. (NASDAQ:AMAT) to $647 from $502, while maintaining an "Equal Weight" rating on the shares, according to a report from Insider Monkey dated July 14, 2026.

Rating Change

Morgan Stanley kept its Equal Weight rating on AMAT, a neutral stance that neither recommends overweighting nor underweighting the stock in a portfolio. The 28.9% increase in the price target reflects improved expectations for the company's future performance.

Analyst Rationale

Analysts at Morgan Stanley believe Applied Materials benefits from rising demand for semiconductor manufacturing equipment used in AI applications. The stock is considered one of the 15 best AI stocks to buy and hold for the next 5 years, according to Insider Monkey's ranking. The price target hike is based on expectations of earnings growth and improving market conditions.

Context

On June 16, Reuters reported on the company's performance, which may have influenced analyst expectations. The stock has recently performed well, supported by strong demand from data centers and AI in the semiconductor sector. Other analysts follow the stock with varying ratings, but Morgan Stanley's price target increase is a positive signal.

What to Make of It

Raising the price target without changing the rating suggests analysts see upside potential but prefer caution. Investors may view this update as supporting the stock's current value, though without a strong catalyst for immediate buying.