Mixed outlook on DRAM growth and Taiwan Semiconductor Manufacturing leads Morgan Stanley to maintain Hold rating on AMAT

From Yahoo Finance: 2025-06-24 16:58:00

Applied Materials, Inc. (NASDAQ: AMAT) is one of the 12 Best Stocks to Buy and Hold for the Long Term. Shane Brett from Morgan Stanley maintained a Hold rating on AMAT with a price target of $158 due to a mixed outlook on Taiwan Semiconductor Manufacturing and DRAM growth.

AMAT’s DRAM revenue is expected to drop 12% in fiscal 2026. Analysts are divided on the company’s outlook, with some optimistic about new technologies like Gate-All-Around transistors, while others feel current valuations are too high. Despite the mixed outlook, Brett maintained a Hold rating on the stock.

During the fiscal second quarter of 2025, AMAT reported a revenue of $7.1 billion, up 7% year-over-year, with gross margins improving to 49.2%. Management anticipates slight year-over-year growth with revenue between $7.15 billion and $7.25 billion.

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Read more: Here’s Why Morgan Stanley Maintained a Hold Rating on Applied Materials (AMAT)