Applied Materials Stock (AMAT) Could Have Further To Run According To Latest Upgrade

Applied Materials stock (NASDAQ:AMAT) has had a mighty start to 2026, adding 18.56% YTD with barely three weeks of trading done.  There could be further upside for AMAT bulls according to a significant upgrade from Deutsche Bank, which lifted its rating to Buy from Hold and raised its price target to $390 from $275. T

Deutsche Bank's bullish stance reflects a “much more constructive” outlook for the wafer fabrication equipment market entering 2026 and 2027. The firm has revised its estimates upward, positioning them approximately 10% above Street consensus, with potential for further upside risk.

This optimistic view marks a notable shift in sentiment toward Applied Materials, particularly as the firm believes the company's current valuation discount relative to peers has become overdone and should narrow going forward.

The upgrade represents the latest in a series of positive analyst actions on Applied Materials. In December 2025, B. Riley Securities maintained its Buy rating while raising its price target to $305 from $270. Deutsche Bank also adjusted its target upward at that time to $275 from $230, though it maintained a Hold rating.

These moves were driven by a tech-led rally and reports indicating robust demand for artificial intelligence infrastructure and data centers, trends expected to accelerate through 2026.

Applied Materials finds itself at the center of the semiconductor industry's evolution, particularly as AI workloads demand increasingly sophisticated manufacturing processes. The company's tools and services span materials engineering, process control, and integration, positioning it to benefit from the industry's shift toward more complex chip architectures. This strategic positioning has translated into tangible financial improvements, with gross margins reaching 47.3% in the first quarter, representing a 100 basis point increase year-over-year.

Price Targets

Deutsche Bank's aggressive price target of $390 implies additional upside of more than 22% from current levels, reflecting conviction that the company's earnings power will expand as the wafer fabrication equipment cycle strengthens. The firm's estimates now sit meaningfully above consensus, suggesting potential for positive earnings revisions if the anticipated market recovery materializes as expected.

With positive analyst momentum building and the stock trading at what Deutsche Bank views as an unjustified discount to peers, Applied Materials appears positioned to benefit from both multiple expansion and fundamental improvement in the semiconductor equipment market through 2027.