Morgan Stanley Raises Price Target on Applied Materials to $273, Expects Strong Growth Driven by DRAM and TSMC Investments

Morgan Stanley raised its price target on Applied Materials (AMAT) to $273 from $252, maintaining an Overweight rating. The firm lifted its 2027 WFE forecast to $145 billion, up 13% YoY, supported by DRAM demand and TSMC's investments. The company generated nearly $8 billion in cash from operations and $5.7 billion in free cash flow in Q3 2025, with a consistent dividend growth rate of around 15% over the past decade.