Applied Materials receives a raised price target and Buy rating amid strong AI-driven chip demand and onshoring trends.
Argus Research raised its price target for Applied Materials (NASDAQ:AMAT) to $500 from $420, maintaining a Buy rating after the company’s Q2 earnings beat. The firm cited long-term growth drivers, including rising demand for AI-powered CPU and GPU configurations and increased onshoring of semiconductor manufacturing as national security priorities.
Applied Materials’ 5-year dividend growth rate stands at 16.24%, positioning it among top dividend growth stocks. Argus highlighted cyclical and industry-wide trends supporting the company’s outlook, while Morgan Stanley adjusted its stance, downgrading AMAT to Equal Weight with a $502 target, citing balanced growth expectations for 2027.
The firm noted that Applied Materials is expected to gain market share in 2026, though its valuation discount relative to peers may persist near-term.