Applied Materials (AMAT) Stock Surges 75% in 2026 — Wall Street Sees Further Upside Ahead

Key Highlights

• Barclays maintained its Overweight stance on Applied Materials (AMAT) while increasing the price target from $500 to $590
• Shares climbed 4.7% to $520.15 during Thursday’s premarket session
• The investment firm boosted its wafer fab equipment market projection to $154 billion, anticipating 36% expansion by 2027
• Several Wall Street firms including Evercore ISI, TD Cowen, Bernstein, and Deutsche Bank maintain Buy recommendations on the stock
• The company inaugurated a $500 million Singapore manufacturing facility, expanding its cleanroom footprint significantly

Applied Materials (AMAT) continues its impressive 2026 performance, and analysts on Wall Street keep pushing their forecasts higher.

Applied Materials, Inc., AMAT

On Thursday, Barclays maintained its Overweight recommendation on AMAT while boosting the price objective to $590, up from the previous $500 mark. Shares responded positively with a 4.7% gain in premarket activity, reaching $520.15. The stock has climbed over 75% since the start of the year.

The firm’s updated projections now place the total addressable market for wafer fabrication equipment at $154 billion, representing an increase from the earlier $139 billion estimate. Barclays forecasts this market will expand by an additional 36% to reach $209.5 billion during 2027.

Other semiconductor equipment manufacturers also received upward revisions. KLA Corp (KLAC) saw its price target elevated to $2,250 from $1,700. Meanwhile, Lam Research (LRCX), which carries a Neutral rating, had its target moved up to $335 from $275. Both companies’ shares traded higher in premarket action.

Wall Street Consensus Strengthens

The optimistic outlook for AMAT has been building for months. Evercore ISI analyst Mark Lipacis confirmed his Buy recommendation on June 4 with a $515 price objective. TD Cowen and Bernstein also reaffirmed positive ratings during early June, with Bernstein holding the most aggressive target at $525.

Deutsche Bank increased its forecast in May from $450 to $550 while maintaining its Buy rating. The financial institution now projects Applied Materials’ semiconductor division will achieve over 30% year-over-year growth throughout 2026.

These revisions followed impressive Q2 2026 financial results announced on May 14. The company reported $7.91 billion in revenue, marking an 11% increase from the prior year. Earnings per share reached $2.86, surpassing analyst expectations of $2.68.

On the customer front, substantial memory chip investments from Micron Technology (MU), SK Hynix, and Samsung are propelling significant growth. Capacity expansions for AI processors at TSMC and Intel (INTC) are providing additional momentum.

New $500 Million Singapore Facility Operational

Applied Materials recently launched its Tampines Campus in Singapore, a $500 million investment that more than doubles the company’s cleanroom capabilities in the region. The facility has already reached volume manufacturing levels.

This development aligns with Applied’s Singapore 2030 strategic initiative and focuses on supporting chip manufacturers expanding production to satisfy AI-related demand. The company anticipates creating approximately 1,000 local positions in the coming years.

The new campus incorporates cutting-edge technology including autonomous mobile robots, artificial intelligence-powered quality control systems, and augmented reality platforms for technician development.

Applied Materials has roughly doubled its worldwide manufacturing capabilities in recent years. The company has also channeled more than $400 million into US-based manufacturing infrastructure over the last half-decade.

Its $5 billion EPIC Center located in Silicon Valley is scheduled to begin operations later this year.

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