Applied Materials (AMAT) Stock Upgraded to Buy as BofA Targets $250 on DRAM Strength

Applied Materials, Inc. (NASDAQ:AMAT) is one of the AI Stocks in Focus on Wall Street. On October 13, Bank of America upgraded the stock to “Buy” from Neutral with a $250 price target. The firm believes that the semiconductor stock’s valuation is attractive.

The rating upgrade reflects prospects of wafer fab equipment, or WFE, growth in 2026. This would be the first time in four years, driven by robust Dynamic Random Access Memory, or DRAM, investments and an attractive valuation gap to large peers.

The firm has raised its calendar 2025 and 2026 WFE growth estimates by 6% and 9%, respectively.

“We upgrade AMAT to a Buy (from a Neutral) and raise our PO to $250 on prospects of WFE [wafer fab equipment] outgrowth in CY26, the first time in four years, due to robust DRAM investments and an attractive valuation gap to large peers.”

Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.

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