Applied Materials Stock Pops After UBS Upgrade and Street-High DRAM Forecast
Applied Materials 
AMAT shares traded at $234 after UBS upgraded the stock to Buy and raised its price target to $285 from $250.
Analyst Timothy Arcuri said AMAT is positioned to benefit from a DRAM spending surge tied to AI and data-center demand. DRAM is server memory for high-performance computing.
UBS expects the wafer fabrication equipment market to expand more than 20% next year to $136.5 billion and climb toward $145 billion in 2027, driven by memory investment.
Arcuri said DDR5 shortages are tightening, lifting prices and underpinning margin recovery. He lifted forecasts and named AMAT a top beneficiary of the cycle.
The firm noted AMAT has underperformed peers such as KLA 
KLAC and Lam Research 
LRCX this year, but argued the company's memory exposure can reset expectations.
UBS also flagged a stronger China WFE cycle, projecting 11% growth in 2026 versus consensus weakness, a potential incremental tailwind.
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